FD vs Women’s Honor Savings Certificate: Understanding the Differences
Recently, Punjab National Bank (PNB), HDFC, Axis, and IndusInd Bank have increased the interest rates on fixed deposits (FDs). In such a scenario, if you are considering obtaining an FD in these banks or any other bank, you should first know about the ‘Mahila Samman Bachat Praman Patra’ (MSSC).
This is a special scheme for women, offering an annual interest rate of 7.5%. Deposits can start from as low as Rs. 1000 and go up to a maximum of Rs. 2 lakh. The tenure for this scheme is 2 years. With this information, you will be able to determine where your money will yield the most beneficial returns.
You can earn interest even after 2 years.
In special circumstances, this account can be closed 2 years earlier. However, if you choose to do so, you will only receive 5.5% interest instead of 7.5%. This interest will be paid on the principal amount. Additionally, you can withdraw 40% of the amount after 1 year.
You can also open an account for your daughter’s name. Under this scheme, women can open accounts for themselves. Furthermore, parents (guardians) can also invest in the name of their daughter (minor). This means even your daughter can invest under her name.
You can open an account at any post office or authorized bank offering the MSSC scheme. To open an account, you will need to submit KYC documents along with the application form.
