Mahila Samman Savings Certificate (MSSC)

The Mahila Samman Savings Certificate (MSSC) or Mahila Samman Nidhi Scheme is a small savings scheme for women and girls was introduced by the Finance Minister, Nirmala Sitharaman in the Union Budget 2023-2024. This one time scheme is available for a two-year period from April 1, 2023 to March 31, 2025.

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What is Mahila Samman Savings Certificate Scheme?

The Mahila Samman Saving Certificate (MSSC) or Mahila Samman Nidhi is a one-time small savings scheme launched by the Government of India in April 2023 to commemorate the Azadi Ka Amrit Mahotsav. The scheme is open to all women, including married women, widows, and women with disabilities. It will offer a  maximum deposit amount of up to Rs. 2 Lacs in the name of girls or women for 2 years at a fixed rate of interest.

This MSSC scheme can easily be purchased from the Post Office and other scheduled banks.

What are the Benefits and Features of Mahila Samman Saving Certificate Scheme?

  • Eligibility: Any woman or guardian of a girl child can open an MSSC account.

  • Maturity period: The maturity period of the MSSC scheme is 2 years.

  • Deposit amount: The minimum deposit amount is Rs. 1,000 and the maximum deposit amount is Rs. 2 lakh.

  • Interest rate: The interest rate on the Mahila Samman Saving Certificate is fixed at 7.5% per annum; the interest rate is much higher as compared to other small savings schemes. The interest is compounded quarterly and credited to the account holder's account.

  • Partial withdrawal: Partial withdrawals are allowed from the MSSC scheme after one year from the date of account opening. However, only 40% of the eligible balance can be withdrawn at a time.

  • Premature closure: The MSSC scheme can be closed prematurely in certain circumstances, such as death of the account holder, marriage of the account holder, or for medical reasons. However, a penalty will be levied on the premature withdrawal amount.

What is the Eligibility Criteria for Mahila Samman Savings Certificate Scheme?

The eligibility criteria for the Mahila Samman Savings Certificate Scheme are as follows:

  • Both women and girl children can participate in the scheme to avail its benefits.

  • All women residing in the country are eligible to apply for the Mahila Samman Nidhi Scheme.

  • Additionally, a girl child who is 10 years of age or older can also have an account opened in her name to apply for the scheme.

What are the Documents Required for Mahila Samman Nidhi Scheme?

To apply for the Mahila Samman Savings Certificate Scheme, the applicant needs to provide the following important documents:

  • Proof of identity of the applicant (such as PAN card, voter ID card, passport, etc.)

  • Proof of residence of the applicant (such as electricity bill, water bill, rent agreement, etc.)

  • Passport Size photo

  • Email address and a valid phone number

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How to Apply for Mahila Samman Saving Certificate Yojana?

Follow the below mentioned steps to open an account under this scheme:

  • Download the 'Application for purchasing the certificate' from the official Indian Post website. Alternatively, visit the nearest Post Office branch to obtain the form.

  • Complete the form by providing the necessary information:

    • In the 'To The Postmaster' section, mention the Post Office address.

    • Write your name in the designated space and specify the account type as 'Mahila Samman Savings Certificate.'

    • Provide the required personal details, including payment information.

  • Fill out the declaration and nomination details as needed.

  • Submit the completed form along with the required documents.

  • Make the deposit at the Post Office using either cash or cheque as per your preference.

  • Upon completion of the above steps, you will receive a certificate confirming your investment in the Mahila Samman Savings Certificate scheme.

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Premature Closure of Mahila Samman Savings Certificate

Following 6 months from the account's opening date, the customer has the option to initiate an account closure, either incurring a 2% penalty or exercising their discretion to do so.

The Mahila Samman Savings Certificate account allows for early closure under specific circumstances:

  • Closure after six months without giving any reason: An interest of 5.5% will be provided.

  • Closure upon the death of the account holder.

  • Closure on extreme compassionate grounds, such as a life-threatening disease of the account holder.

  • Closure on the death of the guardian (relevant documents required). In this case, interest of 7.5% will be paid on the principal amount.

  • Closure if the operation or continuance of the Mahila Samman Savings Certificate account is causing the account holder some hardship.

What are the Tax Benefits under Mahila Samman Nidhi Scheme?

Tax Benefits under Mahila Samman Nidhi Scheme:

  • No Tax Deducted at Source (TDS): The interest received under the Mahila Samman Nidhi Scheme is not subject to TDS deduction.

  • TDS Threshold: TDS will only apply if the interest received from the post office savings scheme exceeds Rs. 40,000 (Rs. 50,000 for senior citizens) in a financial year.

  • Limited Interest Amount: The interest earned on a maximum investment of Rs. 2 lakh for two years does not exceed Rs. 40,000, making it exempt from TDS under this scheme.

Mahila Samman Savings Certificate vs Other Govenerment Savings Schemes

Here is a comparison table showing Mahila Samman Savings Certificate (MSSC) vs other government savings schemes:

Feature Mahila Samman Savings Certificate (MSSC) Public Provident Fund (PPF) National Savings Certificate (NSC)
Eligibility Any woman Any adult Indian citizen Any adult Indian citizen
Investment amount Minimum of Rs.1000, maximum of Rs.2 lakhs Minimum of Rs.500, maximum of Rs.1.5 lakhs per financial year Minimum of Rs.100, maximum of Rs.1.5 lakhs per financial year
Interest rate 7.5% p.a. (compounded quarterly) 7.1% p.a. (compounded yearly) 6.8% p.a. (compounded yearly)
Lock-in period 2 years 15 years 5 years
Maturity period 5 years 15 years 10 years
Tax benefits Tax-free interest Tax-free interest Tax-free interest on maturity
Withdrawals Available after 2 years  Available after 5 years, subject to penalty Available after 5 years, subject to penalty
Nomination Yes Yes Yes
Transferability Not allowed Not allowed Not allowed

Mahila Samman Savings Certificate vs Sukanya Samriddhi Yojana

Here is a comparison table showing MSSC vs Sukanya Samriddhi Yojana (SSY):

Feature Mahila Samman Savings Certificate (MSSC) Sukanya Samriddhi Yojana (SSY)
Eligibility Any woman Girl child below the age of 10 years
Investment amount Minimum of Rs.1000, maximum of Rs.2 lakhs Minimum of Rs.250, maximum of Rs.1.5 lakhs per financial year
Interest rate 7.5% p.a. (compounded quarterly) 8.5% p.a. (compounded yearly)
Lock-in period 2 years 21 years
Maturity period 5 years 21 years
Tax benefits Tax-free interest Tax-free interest on maturity
Withdrawals Available after 2 years Available after 18 years of the girl child, subject to penalty
Nomination Yes Yes
Transferability Not allowed Not allowed

Banks offering Mahila Samman Savings Certificate

The Mahila Samman Savings Certificate scheme can be purchased at Post Offices and scheduled banks like: 

  • Bank of Baroda

  • Canara Bank

  • Bank of India

  • Punjab National Bank

  • Union Bank of India

FAQ's

  • What is the Mahila Samman Savings Certificate Scheme?

    The Mahila Samman Savings Certificate Scheme is a government initiative aimed at empowering and encouraging women to save for their future financial needs.
  • Who is eligible to participate in the Mahila Samman Savings Certificate Scheme?

    Any adult woman, regardless of her age or income level, is eligible to participate in this scheme.
  • How can I apply for the Mahila Samman Savings Certificate Scheme?

    To apply for the scheme, you can visit your nearest authorized bank or financial institution offering the Mahila Samman Savings Certificate and complete the required application process.
  • Is the interest rate fixed throughout the tenure of the Mahila Samman Savings Certificate?

    Yes, the interest rate is fixed at the time of purchasing the certificate and remains constant for the entire tenure.
  • Can NRIs (Non-Resident Indians) invest in the Mahila Samman Savings Certificate Scheme?

    The eligibility criteria for NRIs to invest in the scheme may vary depending on the government's regulations. NRIs should contact the issuing authority or the bank to get clarity on their eligibility.
  • Are joint investments allowed under the Mahila Samman Savings Certificate Scheme?

    The scheme is designed to empower women through individual investments. Joint investments are not permissible.

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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

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