Mahila Samman Saving Certificate Scheme (MSSC) – Eligibility, How to Apply, Calculation, Interest Rate, Tax Benefits

Understanding the Mahila Samman Saving Certificate Scheme (MSSC)

The Mahila Samman Saving Certificate Scheme (MSSC), introduced in the 2023 Budget, has been officially launched. This article provides comprehensive details about the scheme, including eligibility criteria, application process, interest rate, tax benefits, and more.

What Is the Mahila Samman Saving Certificate Scheme (MSSC)?

The Mahila Samman Saving Certificate Scheme (MSSC) is a government-initiated savings scheme designed exclusively for women investors. Its main objective is to encourage women’s participation in investments and facilitate their financial inclusion. Let’s delve into the scheme’s specifics.

Key Features of the Mahila Samman Saving Certificate (MSSC)

To better understand the scheme, here are its key features:

1. Eligibility: The scheme is open to all women, including minors.
2. Interest Rate: The scheme offers a fixed interest rate of 7.5%.
3. Minimum Investment: You can start investing with a minimum amount of Rs 1,000.
4. Maximum Investment: The maximum investment allowed is Rs 2 lakh, combining all accounts.
5. Maturity Period: The scheme has a maturity period of two years.

Mahila Samman Saving Certificate Interest Rate

The Mahila Samman Saving Certificate Scheme (MSSC) provides a fixed interest rate of 7.5%, compounded quarterly and payable at maturity.

Features of the Mahila Samman Saving Certificate Scheme (MSSC)

The scheme offers several features that make it an attractive investment option for women:

1. Guaranteed Return: The scheme is backed by the government, ensuring a guaranteed rate of return. This eliminates concerns about market fluctuations, providing a safe investment avenue.
2. Deposit Limits: You can initiate your investment in this scheme with a minimum amount of Rs 1,000 or any other sum in multiples of Rs 100. However, additional deposits are not allowed.
3. Total Investment Cap: You can deposit up to Rs 2 lakh across one or multiple accounts. Each account must have a three-month gap between the opening date of the existing account and the new one.
4. Maturity: The scheme has a lock-in period of two years. Your maturity amount will be disbursed after two years from the date of opening the account.
5. Partial Withdrawal: The scheme provides a partial withdrawal facility, enabling you to withdraw 40% of the eligible balance after one year from the account’s opening.
6. Premature Closure: Although the maturity period is two years, there are exceptions that allow for premature closure:
   • In the event of the account holder’s death
   • On extremely compassionate grounds, such as the account holder’s life-threatening disease or the guardian’s death (relevant documents are required)
   • After six months from the date of account opening without any specific reason. However, the interest rate will be reduced by 2% to 5.5%.

Eligibility Criteria for the Mahila Samman Saving Certificate Scheme (MSSC)

The scheme is exclusively available to women. Any woman above 18 years of age can invest in this scheme independently. In the case of minors, the guardian can open the account on behalf of the girl.

Tax Benefits of the Mahila Samman Saving Certificate Scheme (MSSC)

While no specific details regarding tax benefits have been provided by the government, it can be assumed that the scheme will be subject to normal taxation as per the slab rate, unless stated otherwise.

How to Open a Mahila Samman Saving Certificate Account (MSSC)

To open a Mahila Samman Saving Certificate account (MSSC), follow these steps:

1. Visit your nearest post office – The Mahila Samman Saving Certificate Scheme is provided by India Post. Visit your nearest post office to begin the account opening process.
2. Fill out the account opening form (Form I) – Obtain the account opening form (Form I) from the post office counter or download it from the India Post website. Submit the completed form on or before March 31, 2025.
3. Submit the KYC form – If you are a new account holder at Indian Post, submit the KYC form along with the account opening form.
4. Provide necessary KYC documents – Submit your Aadhaar card, PAN, address proof, and other required KYC documents.
5. Deposit investment amount – Make the investment deposit in cash or by cheque.
6. Obtain the scheme certificate – After submitting the filled-up form and making the payment, the post office will issue a scheme certificate.

Other Savings Schemes for Women:

• Mahila Samman Saving Certificate
  • Eligibility: Women, including minors
  • Interest Rate: 7.50%
  • Deposit Limit: Minimum: Rs 1,000, Maximum: Rs 2 lakh
  • Maturity Period: 2 years
  • Partial Withdrawal: Up to 40% of balance after one year
  • Tax Benefits: Not yet specified
• Public Provident Fund (PPF)
  • Eligibility: Any Indian citizen
  • Interest Rate: 7.1%
  • Deposit Limit: Minimum: Rs 500, Maximum: Rs 1.5 lakh
  • Maturity Period: 15 years
  • Partial Withdrawal: Up to 50% of balance after seven years
  • Tax Benefits: Eligible for deduction under Section 80C

• Sukanya Samridhi Yojana (SSY)

  • Eligibility: Girl child up to 10 years
  • Interest Rate: 8%
  • Deposit Limit: Minimum: Rs 250, Maximum: Rs 1.5 lakh
  • Maturity Period: After 21 years or on marriage at 18 years of age
  • Partial Withdrawal: Up to 50% of balance at 18 years for marriage or education
  • Tax Benefits: Eligible for deduction under Section 80C