Mahila Samman Saving Certificate: Eligibility, How to Apply, Interest Rates, and Calculation

The Mahila Samman Savings Scheme (2023–2025) was a special, government‑backed small savings scheme designed exclusively for women and girl children. The Mahila Samman Savings Certificate (MSSC) aimed to promote financial inclusion and support women’s savings. Under the MSSC, 43,30,121 accounts had been opened till 31 October 2024.

Key Highlights

• Union Finance Minister announced Mahila Samman Savings Certificate in her Budget Speech 2023-24.  
• The Mahila Samman Savings Certificate (MSSC) was available from 1 April 2023 to 31 March 2025.
• No fresh deposits are currently being accepted under the MSSC by post offices or authorised banks from 1 April 2025.

Features of Mahila Samman Savings Certificate 

Given below are the features and benefits of the Mahila Samman Savings scheme:

Government-backed security

The Mahila Samman Savings Certificate was fully backed by the Government of India, making it a low-risk investment option with no credit risk.

Fixed interest rate

The scheme offered a fixed interest rate of 7.5% per annum, which remained unchanged for the entire tenure.

Short tenure

The maturity period was only two years, making it suitable for short-term financial planning.

Partial withdrawal facility

Account holders could withdraw up to 40% of the account balance after completing one year from the date of account opening.

Government-Backed Scheme 

Mahila Samman Savings Certificate scheme wis a small savings scheme backed by the government. Hence, it does not have any credit risk. 

Benefits of Mahila Samman Savings Certificate 

Mahila Samman Savings scheme offers the following benefits:

• Guaranteed returns due to government backing
• Higher interest rate compared to many bank fixed deposits during the same period
• Simple structure with predictable maturity amount
• Encouraged financial independence and savings habits among women

Eligibility of Mahila Samman Saving Certificate Scheme

Applicants had to fulfil the following eligibility criteria:

• The applicant must be Indian citizen.
• The applicant must be a women or girl children.
• A minor account can be opened for a girl child by her guardian.
• Women of all ages are eligible.

How to Apply for Mahila Samman Savings Certificate?

Although the scheme is discontinued now, the application process was entirely offline. 

Opening of Mahila Samman Savings Certificate at post office

• Download the ‘Application for purchasing the certificate’ from the official Indian Post website. You can also visit the nearest Post Office branch and get the form.
• Fill out the Post Office address under the ‘To The Postmaster’ section.
• Fill in your name in the given space and mention the account as 'Mahila Samman Savings Certificate’. 
• Fill out the account type, payment and personal details.
• Fill out the declaration and nomination details.
• Submit the form with the required documents.
• Make the deposit in the Post Office through cash or cheque.
• Receive the certificate that serves as proof of investment in the Mahila Samman Savings Certificate scheme.

Opening of Mahila Samman Savings Certificate at Banks

• Visit the bank offering the scheme and obtain the Mahila Samman Savings Certificate application.
• Fill out the required details on the application form. 
• Fill out the declaration and nomination details.
• Submit the form to the bank's branch office with the required documents.
• Deposit the scheme opening account with the bank officials. 
• Receive the certificate that serves as proof of investment in the Mahila Samman Savings Certificate scheme.

Banks Offering Mahila Samman Savings Certificate

The Department of Economic Affairs, Ministry of Finance authorised all public sector banks and qualified private sector banks to operate the Mahila Samman Savings Certificate scheme through an e-gazette announcement on 27 June 2023. The list of qualified banks offering this scheme is as follows:

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

Documents Required for Mahila Samman Savings Certificate Account

Applicants were required to furnish the following documents:

• Application form
• KYC documents, such as an Aadhaar card, Voter ID, driving license and PAN card 
• KYC form for new account holders 
• Pay-in-Slip along with deposit amount or cheque

Tax Benefits of Mahila Samman Saving Certificate Scheme

• The interest earned on the Mahila Samman Savings Certificate is taxable income. 
• MSSC interest is taxable under the head ‘Income from Other Sources’ in your Income Tax Return (ITR). 
• MSSC interest amount should be declared in your ITR in the financial year in which you received the interest and not at the time of maturity.
• Under Section 194A of the Income Tax Act, Tax Deducted at Source (TDS) is deducted on interest from post office savings schemes only when the total interest amount in a financial year exceeds ₹40,000 for general taxpayers and ₹50,000 for senior citizens. Since, the maximum interest amount is around ₹16,000 for ₹2 lakh investment at 7.5% p.a. and is below the TDS threshold, and TDS is not deducted on the MSSC interest. 
• Even if no TDS is deducted, the interest earned is still taxable and must be reported in your ITR.
• The amount invested in MSSC does not qualify for deduction under Section 80C. While the scheme offers a fixed return, it does not provide tax deduction on the investment amount.

Premature Closure of Mahila Samman Savings Certificate

The Mahila Samman Savings Certificate account can be closed before two years in the following situations:

• After six months of opening the account without giving any reason. In such a case, an interest of 5.5% will be given.
• On the death of the account holder. In such a case, the interest will be paid on the principal amount.
• In the case of an extreme compassionate ground, such as: 
  • A life-threatening disease of the account holder.
  • Death of the guardian upon production of relevant documents. In such a case, the interest will be paid on the principal amount.

Note: Premature closure of an account for any reason other than provided above may be permitted after six months of opening the account. In such a case, the interest rate is 5.5%, i.e., 2% lower than the rate specified in this scheme.

How to Close Mahila Samman Account Before Maturity?

Premature closure can be initiated in the following way:

Step 1: Visit the post office or the authorised bank branch where the MSSC account was opened.

Step 2: Obtain and fill in ‘Form-4’ for premature closure of the MSSC account. 

Step 3: Submit the form and the required documents (Passbook/certificate, Aadhaar/ID proof and account details) to the officials.

Step 3: The post office or bank will verify the application and eligibility for closure.

Step 4: The amount will be credited to your linked bank account after approval.

Mahila Samman Savings Certificate Maturity Amount Calculator

Mahila Samman Savings Scheme provides 7.5% per annum, which is compounded quarterly.  Quarterly compounding means the interest gets added to the principal every three months, so the next quarter’s interest is calculated on a higher base amount. 

If you invested Rs.2,00,000 in MSSC, your maturity amount will approximately be Rs.2,32,044. You would have gained an interest of Rs.32,044 over 2 years.

Here is a table that shows the interest rate earned on different principal amounts:

Best Alternatives to Mahila Samman Savings Certificate in 2026

The government has introduced many small savings schemes that serve as investment tools for people. Since MSSC is no longer open for fresh investment, investors can consider these alternatives:

• Public Provident Fund (PPF)
• National Savings Certificate (NSC)
• Senior Citizens Small Savings Scheme (SCSS) 
• Sukanya Samriddhi Yojana (SSY)
•  (TD)

Let’s look at the comparison of other small savings schemes with the Mahila Samman Savings Certificate.

PPF Vs Mahila Samman Savings Certificate 

NSC Vs Mahila Samman Savings Certificate 

SCSS Vs Mahila Samman Savings Certificate 

SSY Vs Mahila Samman Savings Certificate