Mahila Samman Saving Certificate Scheme
Here’s everything you need to know about the Mahila Samman Saving Certificate Scheme and its key features.
What is the Mahila Samman Savings Certificate Scheme?
In her Budget Speech for 2023–2024, Union Finance Minister Smt. Nirmala Sitharaman unveiled the Mahila Samman Saving Certificate (MSSC), a new small savings program for women and girls. The scheme was introduced by the Central Government as a means of empowering women in observance of the Azadi ka Amrit Mahotsav.
The Mahila Samman Savings Certificate Scheme is a one-time small savings plan for female investors. It is offered for a two-year period, ending in March 2025. The program aims to increase women's participation in formal saving instruments to improve their financial inclusion.
A deposit under this program may be made in the name of a woman or girl child for up to Rs. two lakhs for a maximum of two years. Although this plan does not offer tax advantages, investors can withdraw a portion of this amount when they are in dire need of funds.
Investors choosing MSSC receive a fixed interest rate of 7.5% on their deposits. The Mahila Samman Savings Certificate works similarly to a fixed deposit (FD) in this regard, with interest calculated on a quarterly basis and accruing on top of the principal amount invested. On the other hand, Mahila Samman Yojana provides higher yields than bank FDs.
Benefits of MSSC
There are several benefits of MSSC, and some of these include the following:
- Investors can participate in the Mahila Samman Savings Certificate scheme because it is a government-backed savings program. Your deposit is safe and continues to earn the agreed-upon rate of interest, so you don't need to worry about market fluctuations.
- A minimum deposit of Rs. 1,000 can be invested in this scheme. Additionally, you can deposit any amount up to Rs. 2 lakhs, with multiples of Rs. 100 allowed. As long as you match the established deposit restrictions, you can also open multiple accounts using this strategy; however, there must be a three-month interval between opening two MSSC accounts.
- With its high return rate of 7.5% p.a., it's a wise choice for female investors.
- The scheme tenure lasts for only two years, making it ideal to save money for short-term goals.
- In some cases, this plan also offers the option for early withdrawal.
- The PM Mahila Samman Yojana offers women the chance to start saving money and earn fixed returns on their investments. This will help them achieve financial independence.
Features of the Mahila Samman Savings Certificate Scheme
Here are some major features of this scheme you should know about.
Eligibility
The Mahila Samman Savings Certificate can only be opened in the name of a female child or adult. Thus, it can be opened by a woman or the legal guardian of a minor girl child.

Maturity
The Mahila Samman Savings Certificate account has a two-year maturity period (from the date of making the investment).
Investment Amount
The Mahila Samman Savings Certificate requires a minimum deposit of Rs. 1,000, expressed as multiples of Rs. 100. The maximum deposit amount in any Mahila Samman Savings Certificate account or across all the account holders' accounts is Rs. 2 lakh.
Interest Rate
Compared to other popular small savings plans and the majority of bank FDs, this scheme offers a fixed and comparatively higher interest rate of 7.5% p.a. Quarterly interest credits will be applied, and the interest will be paid when the account is closed.
Partial Withdrawal
An option for partial withdrawal is offered by the Mahila Samman Saving Certificate program. The account holder may withdraw up to 40% of the accrued amount after a year from the date of account opening.
Premature Closure
In the following circumstances, the Mahila Samman Savings Certificate account can be closed before the two-year mark:
- Six months after the account was opened without explanation - A 5% interest rate will be paid in this scenario
- Upon the account holder's passing - Interest will be paid on the principal amount in this scenario
- When it comes to a very sympathetic ground, like:
- a potentially life-threatening illness that affects the account holder
- the demise of a guardian
The interest will then be paid on the principal amount upon presentation of the necessary documentation.
Documents Required for Mahila Samman Yojana
Here are the key documents needed for the scheme.
- The Mahila Samman Saving Certificate application form: The form is required to initiate the process of account opening.
- KYC form for new account holders: A separate KYC form is often needed for additional information on the new account holder.
- KYC documents: A voter ID, PAN card, Aadhaar card, and driving license are mandatory to complete the MSSC form.
- Pay-in slip: The pay-in slip typically has fields for the depositor's name, account type (Mahila Samman Savings Certificate), deposit amount, and date.
How to Apply for PM Mahila Samman Yojana
Here is a glimpse of the application process for the PM Mahila Samman Yojana.
- The "Application for purchasing the certificate" can be downloaded from the India Post website. Alternatively, you can obtain the form by going to the Post Office branch closest to you.
- In the "To The Postmaster" section, enter the Post Office address.
- In the designated field, enter your name and mention that the account is called "Mahila Samman Savings Certificate."
- Complete the payment, account type, and personal information fields.
- Complete the declaration and nomination form next.
- Submit the form together with the necessary paperwork, and make your cash or check deposit at the post office.
- Acquire the certificate, confirming your participation in the Mahila Samman Savings Certificate program.
Applying for the MSSC Scheme at Banks:
- Pick up an application for a Mahila Samman Savings Certificate at a bank that is running the program.
- Complete the application form with the necessary information.
- Please complete the declaration and nomination form.
- Send the completed form and the necessary paperwork to the bank's branch office.
- Make a deposit of the required amount into the bank account for the scheme.
- Get your plan certificate thereafter.
Tax Benefits Under Mahila Samman Saving Certificate Scheme
TDS applies to the Mahila Samman Saving Certificate Scheme as per the CBDT notification. In case you aren’t aware of what is TDS, it is Tax Deducted at Source. According to Section 194A of the Income Tax Act, TDS is applicable if the interest acquired through a savings plan exceeds Rs. 40,000 (Rs. 50,000 for senior citizens) in a given financial year. However, TDS is not deducted on interest earned under the MSSC since the interest for a maximum investment of Rs. 2 lakh will not exceed Rs. 40,000.