Mahila Samman Saving Certificate Scheme - Eligibility, How to Apply, Calculation, Interest Rate, Tax Benefits

The Mahila Samman Savings Certificate (2023–2025) was a special, government‑backed small savings scheme designed exclusively for women and girl children. Offering a high fixed return, a short two‑year tenure, and secure investment benefits, it aimed to promote financial inclusion and support women’s savings.

Key Highlights

• Union Finance Minister announced Mahila Samman Savings Certificate in her Budget Speech 2023-24.  
• Mahila Samman Saving Certificate was available from 1 April 2023 to 31 March 2025, with no new deposits allowed after discontinuation.
• Offers a 7.5% fixed interest rate, 2-year tenure, and a maximum deposit limit of Rs.2 lakh per eligible woman or girl child.
• Application was fully offline, through post offices and authorised public/private sector banks.

Features and Benefits of Mahila Samman Savings Certificate 

Below are the features and benefits of the Mahila Samman Savings Certificate, 2023:

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. 

Eligibility 

• Only women and girl children could open an MSSC account.
• A guardian could open an account for a minor girl child.

Deposit Limits 

• Minimum: Rs.1,000 (in multiples of Rs.100)
• Maximum: Rs.2 lakh across all MSSC accounts of one individual
• A second MSSC account could be opened after 3 months of the first.

Maturity

The maturity period of the Mahila Samman Savings Certificate account is two years. Thus, the maturity amount will be paid to the account holder after two years from the account opening date. 

Withdrawal

A partial withdrawal facility is provided under the Mahila Samman Saving Certificate scheme. The account holder can withdraw up to 40% of the account balance after one year from the account opening date. 

Interest Rate of Mahila Samman Savings Certificate

This scheme has a fixed interest rate of 7.5% p.a., much higher than most bank Fixed Deposits (FDs) and other popular small savings schemes. The interest will be credited quarterly and paid at the time of closure of the account. 

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

Tax Deducted at Source (TDS) is not deducted from the interest received under this scheme. However, CBDT notified that TDS would apply to the Mahila Samman Saving Certificate Scheme. As per Section 194A of the Income Tax Act, TDS will apply 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). 

Since the interest amount of this scheme for a maximum of Rs.2 lakh investment for two years does not exceed Rs.40,000, TDS is not deducted from the interest received under the Mahila Samman Saving Certificate Scheme.

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.

Mahila Samman Savings Certificate Calculation

Suppose you invest Rs.2,00,000 under the scheme; you get an interest fixed at 7.5% yearly. 

• In the first year, you will get Rs.15,000 interest on the principal amount, and in the second year, you will get Rs.16,125 interest. 
• By the end of two years, you will get 2,31,125 (2,00,000 initial investment + 31,125 interest for two years). Thus, your maturity amount, which you get after two years, will be Rs.2,31,125.

Mahila Samman Savings Certificate Vs Other Small Savings Schemes

The government has introduced many small savings schemes, which are investment tools for people. The popular savings schemes are Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizens Small Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY). 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