In the Union Budget of 2023-24, Finance Minister Nirmala Sitharaman introduced a special scheme called the Mahila Samman Savings Certificate. This scheme was designed to encourage women and girls to save more and to give them access to a safe, government-backed investment option. Officially launched on April 1, 2023, the scheme is available across post offices and select banks in India. With its attractive interest rate and short two-year tenure, it has quickly become popular among women looking for financial security.
What is the Mahila Samman Savings Certificate Scheme?
The MSSC scheme is an initiative of one-time small savings launched by the Government of India for women and girl children. It will continue to be open to investments until March 2025. The scheme permits deposits of a maximum of 2 lakh rupees either under the name of a woman or under the name of a minor girl child.
This scheme is not highly long-term, as is the case with many other savings options. Its maturity period is not more than two years, and hence it is ideal for short-term financial planning. Although the scheme does not have any tax advantages in Section 80C, it has security, reasonable returns, and promises that it is government-backed.
Mahila Samman Savings Certificate Interest Rate
One of the biggest advantages of this scheme is the mahila samman savings certificate interest rate, which is fixed at 7.5% per annum. This interest is calculated quarterly and paid out at the time of maturity along with the principal amount.
When compared with regular bank fixed deposits, which usually offer between 5% and 6.5%, this scheme provides a much higher and guaranteed return. This makes it highly appealing for women who want risk-free investments without worrying about stock markets or mutual funds.
Features of the Mahila Samman Savings Certificate
The scheme has a few distinct features that distinguish it. One can open it with a deposit as low as 1,000 rupees and go up to ₹2 lakh. The deposits should be made in multiples of 100 rupees. The account can be opened by a woman or the guardian of a minor girl.
The lock-in period is two years in the scheme, though it will permit some partial withdrawals up to 40% of the balance after a year has elapsed. This would be to make sure that the women have access to funds in case of an emergency and remain with the savings plan.
Another important feature is that more than one account can be opened under this scheme, provided there is a three-month gap between two accounts and the overall limit of ₹2 lakh is not crossed.
1. Safety of the Scheme
Given that the Mahila Samman Savings Certificate Scheme has the support of the Government of India, it is not at all unsafe. Investors need not care about the risks in the market and the loss of money. The amount of the principal and the interest is secured, hence making it one of the most sure ones in the case of women.
2. Premature Closure of the Account
Although the scheme is for two years, there are situations where the account can be closed early. If the account holder passes away, or if there are severe health-related issues or other compassionate grounds, premature closure is permitted. Additionally, investors are allowed to close the account anytime after six months without giving any reason. However, in this case, the interest rate is reduced to 5.5%.
Tax Benefits
Unlike the Public Provident Fund (PPF) or Sukanya Samriddhi Yojana (SSY), the mahila samman scheme does not offer any tax deductions under Section 80C. The interest earned is also taxable as per the investor’s income tax slab. This is something investors should keep in mind while planning their finances.
How to Open a Mahila Samman Savings Certificate Account
Women and girls can open this account at post offices or authorised banks. The process is simple and requires filling out a form, submitting KYC documents such as Aadhaar, PAN, or voter ID, and paying the deposit either in cash or cheque. Once the process is complete, the investor receives a certificate as proof of investment.
Banks Offering MSSC
Apart from post offices, many public and private sector banks also offer the scheme. Some of the major ones include:
- State Bank of India (SBI)
- Bank of Baroda
- Punjab National Bank
- Canara Bank
- Union Bank of India
- Central Bank of India
This wide availability makes it easy for women across the country to access the scheme.
Mahila Samman Savings Certificate vs Other Schemes
The table below compares the Mahila Samman Savings Certificate with some other popular government-backed savings schemes.
| Basis | Mahila Samman Savings Certificate (MSSC) | Sukanya Samriddhi Yojana (SSY) | Public Provident Fund (PPF) | Senior Citizen Savings Scheme (SCSS) | National Savings Certificate (NSC) |
| Eligibility | Women and girls (including minors) | Girl child below 10 years | Any Indian citizen | Senior citizens above 60 years | Any individual |
| Interest Rate | 7.50% | 8.00% | 7.10% | 8.20% | 7.70% |
| Deposit Limit | Min ₹1,000, Max ₹2 lakh | Min ₹250, Max ₹1.5 lakh | Min ₹500, Max ₹1.5 lakh | Min ₹1,000, Max ₹30 lakh | Min ₹100, no maximum |
| Maturity | 2 years | 21 years or marriage at 18 | 15 years | 5 years | 5 years |
| Partial Withdrawal | 40% after 1 year | 50% after age 18 | 50% after 7 years | Allowed | Limited cases |
| Tax Benefits | None | Section 80C deduction | Section 80C deduction | Section 80C deduction | Section 80C deduction |
This table makes it clear that while MSSC does not have tax benefits, it is still a great choice due to its short maturity period and attractive interest rate.
Why Women Should Consider This Scheme
The Mahila Samman Savings Certificate is ideal for women who may wish to save money with short-term objectives such as educating their children, medical bills, or even as an emergency fund. It is among the surest investment options in the market at the moment because of its flexibility, safety, and higher interest rate.
Through this scheme, women are assured of their financial future and also take a step towards economic independence. The fact that financial literacy and female inclusion is still in its nascent phase in India means that programs such as this one are very beneficial in empowering women of all social strata.
Conclusion
The mahila samman certificate is a thoughtful initiative by the Government of India that focuses on the financial empowerment of women. With its fixed interest rate of 7.5%, guaranteed safety, and simple process, it is a great option for women who want to start their savings journey.
Even though it does not offer tax benefits, its higher return compared to bank deposits and its short two-year tenure make it a smart choice. If you are a woman or a guardian of a girl child, this scheme can be an excellent way to begin saving in a disciplined and secure manner.
