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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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.
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 However, only 40% of the eligible balance can be withdrawn at a time.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.
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.
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
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.
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.
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.
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|
|Transferability||Not allowed||Not allowed||Not allowed|
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|
|Transferability||Not allowed||Not allowed|
The Mahila Samman Savings Certificate scheme can be purchased at Post Offices and scheduled banks like:
Bank of Baroda
Bank of India
Punjab National Bank
Union Bank of India
*All savings are provided by the insurer as per the IRDAI approved insurance
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
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