FD Vs MSSC: Two-year investment in fixed deposit and Mahila Samman Savings Certificate; which is a better option?

FD vs MSSC: Fixed Deposit (FD) has always been one of the safest and popular investment schemes for people. Though there are many options which give better returns than FDs, those who like safe investment often prefer to choose FD. But if a woman is looking for a better investment option for two years, then instead of FD, she can invest her money in MSSC. In this scheme, they can get much better returns than FD.

Interest rate on 2-year deposit

• Interest in post office – 7.0%
• Interest in State Bank – 6.80%
• Interest in Canara Bank – 6.85%
• Interest in Bank of India – 7.25%
• Interest in Bank of Baroda – 6.75%
• Interest in Punjab National Bank – 6.80%
• Interest in Mahila Samman Savings Certificate – 7.5%

MSSC or FD, which option is better?

MSSC is also a deposit scheme which has been started specially for women, so that their savings can be encouraged.

In this scheme, investment can be started with a minimum of Rs 1,000, but the maximum investment limit is fixed.

Women can invest a maximum of Rs 2 lakh in this scheme.

In such a situation, if an amount of up to Rs 2 lakh is to be invested, then at present, MSSC will prove to be better than FD.

But if the amount to be invested is more than Rs 2 lakh, then you can't invest in MSSC.

In such a situation, you can choose FD or any other investment option.

Where will the account be opened?

Any woman can open her account under MSSC in a post office or an authorised bank.

For girls below 18 years of age, their parents can open MSSC account.

While opening an account, you will have to fill Form-1, along with this, you will need KYC documents like Aadhar Card, PAN Card and colour photos, etc.

The benefit of this scheme can be availed till the year 2025.

What if you withdraw monwy before 2 years?

If you want to withdraw money from the account before the maturity period, you get this facility after 1 year.

If you need money in between, then after completion of 1 year, you can withdraw up to 40 per cent of the deposited money. 

If the account holder falls seriously ill or dies, the Mahila Samman Savings Patra Scheme account can be closed after six months of opening the account.

But in this condition, the money is returned by reducing the interest rate by 2 per cent.

In such a situation, interest will be given at the rate of 5.5 per cent.