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.
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:
|Interest earned is tax-free up to ₹40,000
|Girl Child & Women
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.
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.
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.
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.
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.
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.
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.
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
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.
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.
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:
KYC documents (Aadhaar card, Voter ID, Driving license, and PAN card)
KYC form for new account holders
Quarterly compounding of interest
*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 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
Quick Tip: If you have difficulty to choose the right saving scheme, you can also compare Mahila Samman Saving Scheme with other saving schemes to have a better idea of which saving scheme to choose as per your requirements.
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.
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:
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
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.
|Amount deposited (Principal amount)
|Amount added, per the Interest Rate
|Total amount, after maturity period
Ready to take next step ?
The Mahila Samman Savings Certificate is a government-sponsored savings scheme designed to encourage women to save their money.
Interest on the MSSC account is calculated at 7.5% per annum interest rate and is compounded quarterly.
The MSSC scheme offers highest interest rate for 2 year maturity period, and tax-free interest earnings.
The top banks that offer Mahila Samman Savings Certificate are Bank of Baroda, Canara Bank, Bank of India, Punjab National Bank and Union Bank of India.
Yes, you download the application form online from the official website of bank or post office, fill it and submit it by visiting in person. Check the detailed steps mentioned in this page.
There is no minimum age limit for the MSSC scheme. However, a minor girl can only open an account through a guardian.
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