Mahila Samman Savings Certificate Scheme (MSSC)

The Mahila Samman Savings Certificate scheme (MSSC) was launched in the 2023-24 Union Budget by Finance Minister Nirmala Sitharaman. It is designed to encourage women to save their money and promote financial inclusion. The scheme offers an attractive interest rate of 7.5% and a maturity period of two years. The minimum deposit amount is ₹1,000 and the maximum deposit amount is ₹2 lakh per account. The scheme is available from April 2023 to March 2025.

Mahila Samman Savings Certificate Interest Rate

The Mahila Samman Savings Certificate Scheme offers one of the highest interest rates among comparable small savings schemes. Here are the key highlights of the MSSC scheme:

Mahila Samman Savings Certificate Calculator

Calculate the MSSC scheme maturity amount with ease using the Mahila Samman Savings Certificate Calculator. The interest rate and the period of deposit are fixed. Therefore, only add the deposit amount in the calculator below to check your maturity amount.

Mahila Samman Savings Certificate Eligibility

The eligibility criteria to invest in the Mahila Samman Savings Certificate scheme are as follows:

Women of any age can open an MSSC account.

The scheme can be done only in the name of a girl child or a woman.

A guardian (male or female) can open an MSSC account on behalf of a minor girl.

Mahila Samman Savings Certificate Deposit Limit

The minimum deposit amount is ₹1,000.

The maximum deposit amount is ₹2 lakh per account.

An individual can hold multiple MSSC accounts, but the total deposit across all accounts should not exceed ₹2 lakh.

Mahila Samman Scheme Maturity

Here are the key points about maturity under the Mahila Samman Savings Certificate scheme:

The MSSC scheme has a maturity period of two years.

At the end of the maturity period, the account holder will receive the principal amount plus the accrued interest.

The interest is compounded quarterly.

Mahila Samman Scheme Withdrawal

Here are the key points about the withdrawal facility under the Mahila Samman Savings Certificate scheme:

Partial withdrawals are allowed under the scheme after 1 year from the account opening date.

The depositor can withdraw up to 40% of the Mahila Samman account balance as per the scheme guidelines

The scheme enables meeting emergencies without fully withdrawing the savings before the maturity period.

Mahila Samman Scheme Tax Benefits

Here are the key points regarding Mahila Samman Saving Certificate tax benefit:

No TDS (Tax Deducted at Source) is applicable to the interest earned in the Mahila Samman scheme. It offers an exemption from TDS, unlike regular fixed deposits.

Generally, TDS at 10% is deducted if the FD interest exceeds Rs. 40,000 per annum (Rs. 50,000 for senior citizens). However, the interest income from Mahila Samman accounts is fully exempt from TDS.

This makes the interest income completely tax-free at source under the MSSC scheme.

TDS exemption allows enjoying full interest payout without any tax deductions

In summary, the Mahila Samman Saving Certificate scheme offers the benefit of tax-free interest earnings.

Features of Mahila Samman Savings Certificate

The Mahila Samman Savings Certificate is an exclusive savings scheme for women offered by the Government of India that provides fixed returns along with security of the principal amount. This savings certificate can be a smart investment addition to the financial portfolio of working women, homemakers, and students alike.

Salient features:

Guaranteed returns at a fixed rate of 7.5% interest per annum

Available for women as well as girl children with a minimum investment of Rs. 1,000

Maximum investment limit up to Rs. 2,00,000 per account

Quarterly compounding of interest

Accumulating investment wherein principal and accrued interest are paid out at maturity

Government-backed scheme providing safety of the deposit

Benefits of MSSC scheme

The MSSC scheme offers the flexibility of partial or premature withdrawals along with tax benefits on interest earnings for women investors.

Here are the benefits:

1. Excellent opportunity for growth: Mahila Samman Savings Certificate interest rate is 7.5% p.a., which is higher than the average interest rates on FDs offered by the other banks in the country.

2. Simplicity in eligibility: The eligibility criteria for this scheme are simple- you just need to be female.

3. Within reach for everyone: You can open an account with as little as ₹1,000/- deposit.

4. Flexibility of premature withdrawal: One attractive feature is the option for premature withdrawal after just one year of opening the account.

5. Accessible to everybody: The account opening process is easy and requires only a bare minimum of documentation.

6. Caters to specific needs: The scheme can be opened in the name of a girl child or a woman. A woman or guardian of a minor girl child can also open a Mahila Samman Saving Certificate.

7. Early withdrawal option: Unlike other accounts, premature closing is no longer a headache, as you can opt for it without any reason after 6 months of opening the account at an interest rate of 5.5% p.a.

Steps to Open Mahila Samman Savings Account

Follow the steps below and start immediately; it's a very simple process, so you can proceed easily with a few little instructions. You can either open Mahila Samman account in a post office or in a bank. Here’s the step-by-step guide on how to apply for Mahila Samman Savings Certificate Scheme.

1. Visit your nearest Post Office/ Bank and collect the application form for the Mahila Samman Savings Certificate (You can also download the application form online from official website and fill it up at home)

2. Fill in the form Specify the account type, payment method, and personal information.

3. Complete the declaration and nomination sections.

4. Attach all necessary documents (Aadhaar & PAN) along with the filled form.

5. Visit the Post Office and submit the form with the documents.

6. Deposit for the certificate using cash or a cheque.

7. Receive the ‘Mahila Samman Savings Certificate’ as proof of your investment.

Documents Required for Mahila Samman Savings Scheme

Knowing the procedure and what documents you should collect will make the process much smoother. As mentioned earlier, just minimal documentation is needed, nothing more! Below are all the documents you need to provide:

Application form

KYC documents (Aadhaar card, Voter ID, Driving license, and PAN card)

KYC form for new account holders

Quarterly compounding of interest

Pay-in-Slip

*Note that, Application form and Pay-in Slip is available at the bank/ post office branch and you only need to carry your Aadhaar & Pan Card (original & photocopies)

Top 5 Banks Offering Mahila Samman Savings Certificate

Top public sector banks allow women to manage their savings by opening Mahila Samman Certificate accounts at convenient branch locations. Here are the top 5 banks that offer Mahila Samman Savings Certificate:

1. Bank of Baroda

2. Canara Bank

3. Bank of India

4. Punjab National Bank

5. Union Bank of India

Premature Closure of Mahila Samman Savings Certificate

Are you aware that the Mahila Samman Savings Certificate account offers various options for early closure? Unlike traditional savings plans, this innovative account allows for premature closure in the following circumstances:

Swift Closure Within 6 Months: You have the unique advantage of closing the account within just six months of opening, without the need to provide any reason. In such instances, a generous interest rate of 5.5% will be rewarded.

Compassionate Grounds: In case of a life-threatening disease or the account holder's guardian passing, you can close the account by presenting the required documents and receiving interest on your savings.

Bereavement Closure: In case of the account holder's death, you can quickly close the account to take care of everything smoothly.

Mahila Samman Savings Certificate Maturity Amount Calculations

At this point, you must be very clear about the benefits offered by the MSSC scheme. Equally significant is grasping how the money you invest grows over time through accrued interest.

In order to calculate the MSSC maturity amount, you can either use the Mahila Samman Saving Certificate Calculator or do it manually as shown in the example below.

Suppose you invest Rs.2,00,000 under the scheme, and the interest is fixed at 7.5% yearly. Here's how the Mahila Samman Savings Certificate interest rate calculation works:

Year 1:

Principal amount: Rs.2,00,000

Interest earned in 1st year: 7.5% of Rs.2,00,000 = (7.5/100) * 2,00,000 = Rs.15,000

Year 2:

Principal amount at the beginning of 2nd year: Rs.2,15,000

Interest earned in 2nd year: 7.5% of Rs.2,15,000 = (7.5/100) * 2,15,000 = Rs.16,125

Total maturity amount after two years:

Maturity amount = Rs.2,00,000 (initial investment) + Rs.15,000 (interest from 1st year) + Rs.16 (interest from 2nd year) = Rs.2,00,000 + Rs.30,000 = Rs.2,31,125.