In her Union Budget Speech of 2023-24, Finance Minister, Nirmala Sitharaman, announced a new savings scheme for women investors. Mahila Samman Saving Certificate (MSSC) aims to economically empower women and encourage them to park their earnings in formal financial saving instruments.
Officially launched on April 1, 2023 across 1.59 lakh post offices in India, MSSC is a short-term product offering a suitable alternative to fixed deposits.
Read on to learn all about the Mahila Samman Saving Certificate scheme.
The Mahila Samman Savings Certificate is a one-time small savings scheme for women investors, available for a two-year period - up to March 2025. The scheme intends to promote women’s financial inclusion by increasing their participation in formal savings instruments.
Under this scheme, a deposit of a maximum of Rs. 2 lakhs can be made in the name of a girl child or a woman for a period of 2 years. While this scheme offers no tax benefits, investors can withdraw the sum partially.
Under MSSC, investors earn a fixed interest of 7.5% on their deposit. In this way, the Mahila Samman Savings Certificate functions much like a fixed deposit (FD), with interest computed quarterly and accumulating alongside the invested principal. However, MSSC offers returns higher than those of bank FDs.
Key Features of the Mahila Samman Saving Certificate Scheme
| Eligibility | Women only, including minors |
| Minimum Investment | Rs. 1000 |
| Maximum Investment | Rs. 2 lakhs |
| Maturity Period | 2 years |
| Interest Rate | 7.50% |
| Active During | April 2023 – March 2025 |
| Tax Benefits | Nil |
| Government-supported Scheme | Since this is a government-backed savings programme, investing in the Mahila Samman Savings Certificate scheme is safe for investors. You need not worry about market fluctuations; your deposit remains safe and earns the promised rate of interest. |
| Deposit limits | Investors can deposit a minimum of Rs. 1,000 in this scheme. It also allows you to deposit any amount in multiples of Rs. 100, with the maximum deposit capped at Rs. 2 lakhs. Additionally, this scheme allows you to open more than one account, as long as you meet the deposit limits in place. A woman or a guardian of a girl child can open these accounts; there must be a three-month gap between the opening of two MSSC accounts. |
| Maturity | The scheme comes with a two-year lock-in and maturity period. |
| Withdrawal allowance | The scheme allows you to withdraw only 40% of the total balance prior to maturity. However, the withdrawal facility is available only one year after the account is opened. |
| Premature closure | # The scheme has a two-year maturity period, although there are some exclusions that allow you to close the account before maturity:# In the event of the death of the account holder# On compassionate grounds, such as a life-threatening illness of the account holder, death of the guardian, and so on. Necessary documentation supporting the same should be submitted for this.# Investors can also close the account, without explanation, six months after opening the account. In this situation, however, your interest rate will be cut by 2% to 5.5%. |
A Mahila Samman Saving Certificate Scheme can only be opened by the guardian of a minor girl child or by a woman over the age of 18 years.
The Income Tax Act of 1961 does not currently grant the Mahila Samman Savings Certificate any tax advantages or exemptions as a type of investment. Thus, interest earned under this scheme is taxable in accordance with your tax bracket. Depending on the amount of interest income and your tax slab, the holding bank will automatically deduct TDS on the interest income from the Mahila Samman Savings Certificate Scheme.
Women and girls can invest in this scheme through a post office branch. Here are the steps involved:
#1. The first step is to get the application form from a post office branch or India Post’s official website.
#2. Fill out the application form with financial, personal, and nomination information.
#3. Present the completed form, along with any required papers, such as evidence of identification and address in the post office.
#4. Submit the deposit amount through cash or cheque.
#5. You will now receive the MSSC scheme certificate as proof of investment from the post office branch.
#• The Mahila Samman Saving Certificate application form
#• KYC form for new account holders
#• KYC documents, such as Voter ID, PAN card, Aadhaar card, and driving licence.
#• Pay-in-Slip
All public sector banks and qualified private sector banks in India are authorised to offer the Mahila Samman Savings Certificate. These banks include:
- Bank of Baroda
- Canara Bank
- Punjab National Bank
- Bank of India
- Central Bank of India
- Union Bank of India
| Basis | Mahila Samman Savings Certificate (MSSC) | Sukanya Samridhi Yojana (SSY) | Public Provident Fund (PPF) | Senior Citizen Savings Scheme (SCSS) | National Savings Certificate (NSC) |
| Eligibility | Women, including minors | Girl child up to 10 years of age | Any Indian citizen | Senior citizens aged above 60 years | Any individual, including NRIs |
| Interest rate | 7.50% | 8.00% | 7.10% | 8.20% | 7.70% |
| Deposit limit | Minimum Rs. 1,000 and maximum Rs. 2 lakhs | Minimum Rs. 250 and maximum Rs 1.5 lakh | Minimum Rs. 500 and maximum Rs 1.5 lakh | Minimum Rs. 1,000 and maximum Rs. 30 lakhs | Minimum Rs. 100 and no maximum limit |
| Maturity | 2 years | After 21 years from the date of account opening or on marriage at 18 years of age | 15 years | 5 years | 5 years |
| Partial withdrawal | Up to 40% of the balance after one year | Up to 50% of the balance at 18 years of age. Only for marriage or education. | Up to 50% of the balance after seven years | Can be closed at any time | Allowed in certain circumstances |
| Tax benefits | Not yet specified | Eligible for deduction under Section 80C | Eligible for deduction under Section 80C | Deductions of up to Rs.1.5 lakh under Section 80C | Deductions of up to Rs.1.5 lakh under Section 80C |
With a tenure of two years, MSSC offers the lowest tenure among other current small saving schemes. Compared to FDs and NSC, it offers a higher return. Senior citizens, however, might benefit from SCSS more in terms of returns.
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The interest rate of the Mahila Samman Savings Certificate is 7.5 %, which is credited every quarter and paid at the time of closing the account.
To invest in the Mahila Samman Yojana, you can open an account with any of the authorised banks or the post office.
To get the Mahila Samman Saving Patra, you can visit the bank branch or the post office where you have opened the account.
No, tax deduction is not available for the Mahila Samman Savings Certificate.
The tenure of the Mahila Samman Savings Certificate is 2 years.
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26 September 2024
6 mins read
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