Mahila Samman Savings Certificate (MSSC) Features, Interest Rate

Mahila Samman Savings Certificate scheme has been introduced in order to commemorate the 'Azadi ka Amrit Mahotsav'.

  1. It is a small savings scheme for women and girls
  2. Is a one-time scheme available for 2 years i.e. from April 2023 to March 2025
  3. It is available from 01/04/2023 in all the Post Offices across India

Features

  • Government-Backed Scheme
  • It is a single-holder account
  • It is a one-time small savings scheme that is available for a 2-year period from April 2023 to March 2025
  • Fixed interest rate
  • Only women and girls can apply
  • No TDS will be made
  • Maximum limit of deposit in the account is Rs.2 lakhs
  • Helps women build a secure capital through its lucrative returns
  • Maturity period of the scheme is 2 years
  • Premature closure is allowed
  • Facility for partial withdrawal is available
  • There is a provision of multiple account opening

Eligibility Criteria: Who can Open Mahila Samman Savings Certificate Scheme Account?

This savings scheme account can be opened only,

  1. By a woman for herself
  2. Guardian can open an account on behalf of a minor girl
  3. The applicant must have Indian citizenship
  4. There is no upper age limit and women of all ages can avail the benefits of this scheme

Documents Required

To open Mahila Samman Savings Certificate Scheme account, applicants need to submit,

  • Duly filled up Application Form
  • Passport size photograph
  • Proof of age, i.e. Birth Certificate
  • Deposit slip along with deposit amount (in cash or cheque)
  • KYC documents: Aadhaar card, Voter ID, driving license and PAN card
  • KYC form (for new account holders)

For minor account, KYC details of the guardian need to be submitted.

Deposit Amount

There are minimum and maximum limit to deposit the amount under the scheme is set by the government. A maximum of Rs.2 lakhs can be deposited by the account holder in any one account or all account held by her.

DetailsAmount
Minimum DepositRs.1000
Subsequent Depositin multiple of Rs.100
Maximum DepositRs.2 lakhs
Deposit FrequencyOnly one deposit is allowed in one account

Existing account holders of Mahila Samman Savings Certificate Scheme Account can open a second Mahila Samman Savings Certificate account after a gap of atleast 3 months from the opening of the first account.

Interest Rate

The considerable interest rate applicable on a Mahila Samman Savings Certificate Scheme Account is listed in the below table. These interest rates are for the period effective from 01.01.2024.

DetailsInterest Rate
Rate of Interest7.50% per annum

  • Interest under the scheme is compounded quarterly
  • This interest is credited in account itself
  • This compounded interest will be locked-in for the entire tenure of the scheme and will be paid at the time of closure of account.

It is to note that the account opened/deposit made in violation of the guidelines will be given the interest of PO Savings Account only.

Partial Withdrawal

Partial withdrawal of 40% of the eligible balance can be taken after 1 year from the date of account opening.

Pre-mature Closure

The account holder is allowed to close the account prematurely but she is eligible for doing so only after 6 months from account opening date. However, she can prematurely close the account before 6 months as well on any extreme compassionate ground as mentioned in the table below,

Reason of Pre-mature ClosureInterest Rate
On the death of the account holderScheme interest rate 7.50% will be paid on principal amount
Life threatening decease to account holderScheme interest rate 7.50% will be paid on principal amount
Death of the guardian, subject to production of relevant documentsScheme interest rate 7.50% will be paid on principal amount
After 6 months of account opening without mentioning any reasonScheme interest minus 2% will be paid i.e. 5.50%

Maturity

After 2 years from the date of opening of the account. The eligible balance will be paid to the depositor.

The account holder will receive the eligible maturity amount by submitting an application in Form-2 to the accounts office on maturity.

Tax Benefit

Investment made under the plan does not qualify for any tax saving benefit under Section 80C of the Income-tax Act, 1961. However, interest earned under the plan is taxable according to the tax slab of the investor.

Tax Deducted at Source

Tax Deducted at Source (TDS) is not deducted from the interest received under Mahila Samman Saving Certificate scheme.

No TDS is deducted in this scheme because as per Section 194A of the Income Tax Act, TDS will be deducted only when the interest received from the post office savings scheme in a financial year is more than Rs.40,000 or Rs.50,000 (in the case of senior citizens) and the maximum amount which can be invested in MSSC scheme is Rs.2 lakh only and hence, the interest amount of this scheme for a maximum of Rs.2 lakh investment for two years does not exceed Rs.40,000 as the interest payable under MSSC is 7.5% p.a. Therefore, the maximum interest earned under the scheme will be Rs.32,044.

Mahila Samman Saving Scheme Calculator

One can calculate the maturity amount of the Mahila Samman Savings Scheme through manual calculation. Following formula for the calculation needs to be used for this purpose:

Maturity Value = Principal Amount * (1 + Interest Rate/ Compounded interest frequency*100) ^ Compounded interest frequency*Tenure

Suppose you want to calculate your return on investment of an amount of Rs.2,00,000 for the scheme's interest rate of 7.5% p.a. and tenure of 2 years with quarterly compounded interest frequency.

Input

  1. Investment amount: Rs.2,00,000
  2. Interest rate: 7.5% p.a.
  3. Tenure: 2 years

Calculation Part

  • Maturity Value = Principal Amount * (1 + Interest Rate/100) ^ Tenure
  • Maturity Value = 200000 * (1 + 7.50/100) ^ 2

Maturity amount = 232044

Interest earned = Maturity amount – Investment amount

Output

  • Maturity amount: Rs.2,32,044
  • Interest earned: Rs.32,044

How to Apply for Mahila Samman Savings Certificate Account?

There are following two methods for applying for a Mahila Samman Savings Certificate.

  1. Through a bank
  2. At a post office

Investing in Mahila Samman Savings Certificate Account is not very complicated and the process to open the MSSC account through any of the said methods has a very little variation.

How to Open Mahila Samman Savings Certificate at Post Office?

  • Download the 'Application for Purchasing the Certificate' from the post office's website
  • Alternatively, you may go to any of Post Office branches and ask for the account opening form
  • Mention the Post Office address under the 'To The Postmaster' section
  • Mention the account is being opened as 'Mahila Samman Savings Certificate'
  • Write down your name in the given space
  • Fill out all the details correctly such as the account type, payment and your personal details.
  • Fill out the declaration and nomination details.
  • Submit the application form, the deposit amount and the required documents to the concerned official. Make the deposit in the Post Office through cash or cheque
  • After successful submission, you will be given the certificate to acknowledge your investment in the Mahila Samman Savings Certificate scheme

Banks Offering Mahila Samman Savings Certificate

Mahila Samman Savings Certificate program was first made accessible only through post offices (Department of Post). According to an e-gazette announcement on 27 June 2023, now, all public sector banks together with ICICI Bank, Axis Bank, HDFC Bank Ltd and IDBI Bank have been authorised to operate the Mahila Samman Savings Certificate, 2023 from June 27, 2023 onwards.

Given below is the list of authorized banks that offer Mahila Samman Savings Certificate account.

  • Bank of Baroda
  • Canara Bank
  • Bank of India
  • Punjab National Bank
  • Union Bank of India
  • Central Bank of India

How to Open Mahila Samman Savings Certificate at Bank?

  • Download the 'Application for Mahila Samman Saving Certificate' from the qualified bank's official website
  • Alternatively, you may go to the bank to obtain the account opening form
  • Fill out all the details correctly such as the account type, payment and your personal details.
  • Fill out the declaration and nomination details.
  • Submit the application form, the deposit amount and the required documents to the bank's official. Make the deposit in the bank either through cash or cheque
  • After successful submission, you will be given the certificate to acknowledge your investment in the Mahila Samman Savings Certificate scheme

How to Open Mahila Samman Savings Certificate Online?

  • Download the 'Application for Purchasing the Certificate' from the post office's or bank's website
  • Applying for Mahila Samman Savings Certificate account online is not possible as the facility of online application filling is not offered by the post office. So you need to follow below steps.
  • You need to take a print out of the application
  • Mention the account is being opened as 'Mahila Samman Savings Certificate'
  • Fill out all the details correctly such as the account type, payment and your personal details.
  • Fill out the declaration and nomination details.
  • Submit the application form, the deposit amount and the required documents to the concerned official at post office or bank.

FAQs on Mahila Samman Savings Certificate (MSSC)

What is the current interest rate on Mahila Samman Savings Certificat?

The current interest rate from 01.01.2024 on Mahila Samman Savings Certificat at 7.5% p.a.

What is the compounding frequency of MSSC interest rate?

Interest rate of KVP is compounded quarterly.

Can joint account be opened under MSSC scheme?

No. Joint account can't be opened under MSSC scheme. An account opened under MSSC Scheme has to be a single-holder type account.

How many accounts can be opened under MSSC scheme?

You can open any number of accounts under this scheme subject to thecondition that total amount deposited in all the accounts under this scheme for adepositor should not exceed the maximum deposit limit of Rs.

Can father be the guardian for the purpose of opening accounts for minor girl under MSSC scheme?

Yes. Father can be the guardian for the purpose of opening accounts for minor girl under MSSC scheme.