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Mahila Samman Savings Certificate (MSSC) Scheme 2023

Mahila Samman Savings Certificate Scheme

Mahila Samman Saving Certificate is a special government-guaranteed savings scheme for women announced by the Government of India in Budget 2023.

This is done to empower women and girl children financially and increase their participation in investments. The scheme aims to provide women investors with attractive returns, safety, liquidity, and tax benefits. It also encourages women to save for their future goals and aspirations.

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In this article, you will get to know the following details about the Mahila Samman Savings Certificate,

Let’s see each of these points in detail.

About Mahila Samman Savings Certificate

Name of the schemeMahila Samman Savings Certificate
Started in2023
Strated byGovernment of India
BeneficiariesWomen citizens of India

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Features of Mahila Samman Savings Certificate

Some of the features of the Mahila Samman Saving Certificate are:

Deposit Limits: Under the Mahila Samman Savings Certificate scheme,

Minimum depositRs.1,000
Maximum depositRs. 2 lakhs*

*in one account or all Mahila Samman Savings Certificate accounts held by an account holder.

A woman or guardian of a girl child can open a second Mahila Samman Savings Certificate account after a minimum gap of three months from the opening of the existing account.

Interest Rate: The Mahila Samman Savings Certificate offers a higher interest rate of 7.5% per annum, compared to bank fixed deposits and other small savings schemes. The interest will be compounded quarterly.

Withdrawal: The account holder can withdraw up to 40% of the account balance after one year from the account opening date.

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

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Tax Benefits: Tax Deducted at Source (TDS) is not deducted from the interest received under this scheme unless it exceeds Rs.40,000 or Rs.50,000 (in the case of senior citizens) in a financial year. However, the interest income is taxable, as per the income tax slab rates applicable to the account holder.

Eligibility for Mahila Samman Savings Certificate

The eligibility criteria for the Mahila Samman Saving Certificate are:

  1. The account holder must be a woman or a girl child (including minors).
  2. The account must be opened in the name of a single holder only.
  3. The account holder or the guardian of a minor girl child must have valid identity proof and address proof.
  4. The minimum deposit amount is Rs.1,000 and the maximum deposit amount is Rs.2 lakh in one account or all Mahila Samman Saving Certificate accounts held by an account holder.
  5. A woman or guardian of a girl child can open a second Mahila Samman Saving Certificate account after a minimum gap of three months from the opening of the existing account.

Other eligibility criteria may be applied. Please check it with your bank before opening.

Benefits of Mahila Samman Savings Certificate

Some of the benefits of the Mahila Samman Saving Certificate are:

  1. It is a government-backed scheme, which means it has no credit risk and is safe to invest in.
  2. It offers a higher interest rate of 7.5% p.a. than many fixed deposits, NSC, KVP, RD, and PPF.
  3. It has a short maturity period of two years, which makes it suitable for short-term goals.
  4. It allows partial withdrawal of up to 40% of the account balance after one year, providing liquidity in emergencies.
  5. It has no age restriction for account opening, which means any woman or girl child can avail of this scheme.
  6. It has a low minimum deposit amount of Rs.1,000 and a high maximum deposit amount of Rs.2 lakh, which makes it affordable and flexible for different income groups.

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Banks that provide Mahila Samman Savings Certificate

All public sector banks (PSBs) and Post Offices in India provide the Mahila Samman Saving Certificate. Several private sector banks also provide the scheme. Some of them are,

  1. Bank of Baroda
  2. ICICI Bank
  3. Axis Bank
  4. HDFC Bank
  5. IDBI Bank
  6. Canara Bank

Other banks may also provide the Mahila Samman Savings Certificate. So please check it with your bank.

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(Disclaimer: The information provided in this article is for educational purposes only. The screenshots/logos used are the intellectual property of the respective owners. dreamtrixfinance.com neither endorses nor is affiliated with the brands/websites mentioned. This is not financial advice.)

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