Thread by @Finology_Quest

Mahila samman saving certificate vs FD:
Where should you invest?

Point of diff:
• Eligibility
• Tenure
• Required Investment
• Risks
• Interest Rates
• Pre-mature withdrawals
• Tax Benefits

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#investor #finance

• Eligibility

MSSC: Deposits can be made only in the name of women or girl child

FDs: Anyone who is Resident Indian, Sole Proprietor, Partnership firm, or HUFs with the necessary PAN card details & KYC documents is eligible for FDs.

• Tenure

MSSC: Tenure of this scheme is up to 2 years & this scheme is available up to March 2025.

FDs: Tenure in FDs can range from 7 days to 10 years & investors can choose the tenure according to their requirements.

• Required Investment:

MSSC: Maximum an investor can deposit up to Rs 2 lakh.

FDs: There is no such limit. However, in tax-saving funds, the maximum limit is 1.5 lac per financial year

• Risks:

MSSC: The scheme is backed by the government. Hence, it does not have any credit risk.

FDs: These are generally considered safe investment options. However, it is imp to check the credibility of the bank where you are creating the FD.

• Interest Rates:

MSSC: This scheme will have a fixed interest rate of 7.5%

FDs: The interest in FD depends on the tenure.

• Pre-mature withdrawal:

MSSC: This scheme has a partial withdrawal facility.

FDs: This scheme has a partial withdrawal facility but banks do charge certain penalty for doing so.

• Tax Benefits:

MSSC: Although the FM has not specified any tax benefit for this scheme.

However, every small saving schemes usually qualify for tax benefits under 80C in the old regime.

FDs: Investors can get tax deduction of upto Rs1.5lacs p.a under sec80C in Tax Saving FDs

Do let us know in the comment, which investment option would you choose?⤵️