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Mahila Samman Saving Certificate (MSSC) Scheme, announced during the 2023-24 Union Budget, is designed to empower women and girls financially. Finance Minister Nirmala Sitharaman introduced this two-year savings plan to mark India’s progress towards freedom, known as the Azadi ka Amrit Mahotsav.
Mahila Samman Savings Certificate is a safe savings plan for women and girls of all ages. Its purpose is to encourage them to save and invest. This scheme allows for single-holder accounts to promote financial independence among women.
Under this scheme, women and girls can deposit up to Rs. 2 lakh for two years, and they will earn a fixed interest rate of 7.5% per year, which is higher than most banks offer. In this blog we’ll cover what is Mahila Samman Savings Certificate scheme and and its interest rate.
Mahila Samman Saving Certificate Interest Rate
Mahila Samman Savings Certificate currently provides an attractive fixed interest rate of 7.5% per annum, which is compounded quarterly but paid out in full at the time of maturity. This interest rate stands well above the typical rates offered by most bank Fixed Deposits (FDs) and other commonly chosen small savings schemes. Interest accruals are credited to the account on a quarterly basis and can be withdrawn upon closure of the account.
Advantages of Mahila Samman Savings Certificate Scheme
- Guaranteed Returns: This government-supported scheme ensures you receive a guaranteed rate of return, offering peace of mind amidst market fluctuations. Women can earn a competitive 7.5% interest per annum on their one-time deposit over a two-year period. This interest rate surpasses many fixed deposit rates offered by banks for the same duration.
- Minimum Deposit Requirement: To begin investing in this scheme, all it takes is a minimum deposit of Rs. 1,000, of just Rs. 1,000, or in multiples of Rs. 100. However, no additional deposits are allowed once you’ve made the initial investment.
The total amount you can deposit across one or more accounts is capped at Rs. 2 lakh. While you can open multiple accounts, the combined investment should not exceed Rs. 2 lakhs. Each new account must have a three-month gap from the opening date of the previous account.
- Maturity: The scheme has a fixed lock-in period of two years. This means you’ll receive your maturity amount after two years from the date of opening the account, providing a secure way to grow your savings.
Features of Mahila Samman Savings Certificate
With a competitive interest rate of 7.50%, a low minimum investment requirement of Rs 1,000, and a maximum investment cap of Rs 2 lakh (combined across all accounts), this certificate provides an accessible and attractive investment opportunity. Moreover, the investment matures in just 2 years, making it a convenient choice for those seeking relatively short-term financial growth and stability.
| Feature | Details |
|---|---|
|
Eligibility |
Any women, including minors |
|
Interest Rate |
7.50% |
|
Minimum Investment |
Rs. 1,000 |
|
Maximum Investment |
Rs 2 lakh(summed up from all accounts) |
|
Maturity Period |
2 Years |
Tax Benefits of Mahila Samman Saving Certificate Scheme
With the Mahila Samman Saving Certificate Scheme, you don’t have to worry about taxes being taken directly from the interest you earn. However, there’s a rule from the tax authorities (CBDT) that says taxes may apply if the interest you earn is more than Rs. 40,000 (or Rs. 50,000 for senior citizens) in a year. But don’t worry, because the interest you get from this scheme, even with a maximum investment of Rs. 2 lakh for two years, is less than Rs. 40,000. So, you won’t lose any money on taxes.
How to Open Mahila Samman Savings Certificate?
Women and guardians of minor girls can easily open a Mahila Samman Savings Certificate scheme either at post offices or eligible scheduled banks.
1. Opening a Mahila Samman Savings Certificate Account at a Post Office:
- Download the ‘Application for purchasing the certificate‘ from the official Indian Post website, or simply visit your nearest Post Office branch to obtain the form.
- Complete the form by filling in the Post Office address in the ‘To the Postmaster’
- Enter your name in the space, specifying the account as ‘Mahila Samman Savings Certificate.’
- Enter the required information regarding the account type, payment, and personal details.
- Fill in the declaration and nomination details as needed.
- Please ensure to submit the form along with all the required documents.
- Deposit the desired amount in the Post Office using cash or a cheque.
- You’ll receive a certificate as proof of your investment in the Mahila Samman Savings Certificate scheme.
2. Opening a Mahila Samman Savings Certificate Account at Banks:
- Download the ‘Mahila Samman Savings Certificate Application’ from the official website of the eligible bank or collect it from your nearest bank branch.
- Complete the application form by filling in the required details.
- Provide the necessary declaration and nomination details.
- Submit the completed form and required documents to the bank’s branch office.
- Deposit the initial amount for opening the scheme with the assistance of bank officials.
- You will receive a certificate as evidence of your investment in the Mahila Samman Savings Certificate scheme.
Documents Required for Mahila Samman Savings Certificate Account
- New application form
- KYC documents, such as Aadhaar card, Voter ID, driver’s license, and PAN card
- KYC form for new account holders
- Pay-in-Slip along with the deposit amount or cheque
Who can be Nominee for Mahila Samman Savings Certificate
Mahila Samman Savings Certificate allows you to nominate up to 4 individuals for each account. You can also specify how much of the savings each nominee should receive in case something unexpected happens. If you want to add a minor as a nominee, you’ll need to provide details about their guardian. In case of your unfortunate passing, your nominated individuals will receive the money in the proportions you specified.
Premature Closure of Mahila Samman Savings Certificate
Mahila Samman Savings Certificate account may be closed before the 2-year tenure under the following conditions:
1. Partial/Premature Withdrawal:
The deposit in the account will mature after 2 years from when it was first deposited. At that time, if you want to withdraw the money, you need to fill out Form-2 and submit it to the branch where you have the account.
2. Premature Account Closure
Mahila Samman Savings Certificate Account is opened for a period of 2 years. Normally, it can’t be closed before this time, except in specific situations, which are:
- If the account holder passes away.
- In tough situations, like serious illness or the guardian’s death, keeping the account open is tough for the account holder. In these cases, the bank can let you close the account early, but they’ll check everything carefully and give you the interest you’d get from the scheme without penal charges.
An account can also be closed before the 2-year mark for any other reason mentioned above, but only after 6 months from when it was first opened. In this case, the balance in the account at that time will earn interest at a rate 2% lower than the scheme’s specified rate.
FAQS on Mahila Samman Savings Certificate
What is the Mahila Samman Savings Certificate scheme?
Mahila Samman Savings Certificate is a special 2-year savings scheme launched for women and girl children. A woman or a guardian can open this account and deposit up to ₹2 lakh. The scheme offers a fixed interest rate of 7.5% per year on the amount invested.
What is the interest rate under the Mahila Samman Savings Certificate?
The scheme offers 7.5% annual interest rate. Interest is calculated quarterly and paid out when the account is closed at maturity or pre-closure.
Is the Mahila Samman Savings Certificate tax-free?
Investments made in this scheme do not qualify for tax deduction under Section 80C. However, since the annual interest amount is generally under ₹40,000, no TDS is deducted.
How can I invest in the Mahila Samman Yojana?
You can open an account at any post office or approved scheduled bank. Just download the application form from their website or collect it from the branch, fill it in, and submit it with the required documents.
What are the benefits of Mahila Samman Savings Certificate?
The scheme offers a secure return of 7.5% per year, which is higher than many two-year bank FDs. It is a low-risk option designed specifically to support financial savings for women.
Can I open Mahila Samman Savings Certificate online?
The account cannot be opened completely online. You may download the form online, but you must submit it at a post office or participating bank branch to complete the process.
Is the Mahila Samman Savings Certificate better than a Fixed Deposit?
MSSC offers a higher fixed interest rate (7.5% p.a.) than many bank FDs. However, it has a 2-year lock-in, while most FDs allow premature withdrawal. Your goals and liquidity needs should guide the choice.
Can I close my Mahila Samman account before two years?
Yes, early closure is allowed only under these conditions:
- After 6 months from the date of opening
- On the death of the account holder
- On the death of the guardian (if the account is for a minor girl)
How much can I withdraw from my Mahila Samman account?
After one year from opening the account, you can withdraw up to 40% of the eligible balance.
Happy investing and thank you for reading!
Disclaimer:
This website content is only for educational purposes, not investment advice. Before making any investment, it’s important to do your own research and be fully informed. Investing in the stock market includes risks, and you should carefully read the Risk Disclosure documents before proceeding. Please remember that past performance doesn’t guarantee future results, and due to market fluctuations, your investment goals may not always be achieved.
