Mahila Samman Savings Certificate — 7.5% Interest for Women
The Mahila Samman Savings Certificate is a one-time small savings scheme for women offering an attractive interest rate of 7.5% per annum for a 2-year tenure.
Ministry: Ministry of Finance
Quick Summary
Mahila Samman Savings Certificate at a Glance: A government-backed, one-time savings scheme exclusively for women and girls. Offers a high interest rate of 7.5% per annum. Tenure is 2 years. Maximum deposit limit is ₹2 lakh. Available until March 2025.
Announced in the Union Budget 2023-24, the Mahila Samman Savings Certificate (MSSC) is a small savings scheme exclusively for women and girls. It is designed to encourage financial independence and savings among women by offering a significantly higher interest rate than regular fixed deposits.
Key Features#
- Eligibility: Any woman can open an account for herself, or a guardian can open it on behalf of a minor girl.
- Tenure: The scheme has a fixed maturity period of 2 years from the date of account opening.
- Interest Rate: An attractive fixed interest rate of 7.5% per annum. The interest is compounded quarterly and credited to the account, paid at the time of closure.
- Deposit Limits:
- Minimum deposit: ₹1,000 (and in multiples of ₹100 thereafter)
- Maximum deposit: ₹2,000,000 (₹2 Lakh) per individual across all her MSSC accounts.
- Availability: Valid for a two-year period, available for opening up to March 31, 2025.
Tax Benefits#
Unlike the Public Provident Fund (PPF) or Sukanya Samriddhi Yojana (SSY), the Mahila Samman Savings Certificate does not offer tax deductions under Section 80C. However, the Central Board of Direct Taxes (CBDT) has clarified that TDS (Tax Deducted at Source) will not be deducted on the interest earned under this scheme. The interest earned is still taxable as per the individual's income tax slab.
Since the maximum deposit is ₹2 lakh and the interest earned over two years will not exceed the ₹40,000 threshold, TDS is generally not applicable anyway.
Partial Withdrawal and Premature Closure#
- Partial Withdrawal: Account holders can withdraw up to 40% of the eligible balance once after one year from the date of account opening.
- Premature Closure:
- Permitted in case of the death of the account holder.
- In extreme compassionate grounds (like life-threatening diseases of the account holder or death of the guardian), the account can be closed prematurely without any penalty.
- If closed prematurely for any other reason (permitted only after 6 months of account opening), the interest rate will be reduced by 2%, effectively giving a 5.5% return.
How to Open an Account#
The account can be opened at any Post Office or authorized scheduled banks (like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank, etc.).
Documents Required:
- Application Form (Form-I)
- KYC Documents: Aadhaar Card and PAN Card
- Passport-size photographs
- Pay-in slip along with the deposit amount (Cash/Cheque)
Frequently Asked Questions#
1. Can I open multiple Mahila Samman accounts? Yes, a woman can open multiple accounts, but the total combined deposit across all accounts cannot exceed ₹2 lakh. Also, there must be a gap of at least 3 months between opening the existing account and opening another account.
2. Is this scheme better than a Bank FD? For a 2-year horizon, MSSC offers 7.5%, which is highly competitive and often better than standard FDs offered by major public and private sector banks.
3. What happens if I miss the March 2025 deadline? The scheme is currently announced only till March 31, 2025. Unless extended by the government, no new accounts can be opened after this date.