Mahila Samman
Savings Certificate — Complete Guide
7.5% guaranteed interest for 2 years, backed by the Government of India. Eligibility, tax rules, premature withdrawal, and how MSSC compares with other women savings schemes.
What Is Mahila Samman Savings Certificate?
Mahila Samman Savings Certificate (MSSC) is a special one-time savings scheme introduced by the Government of India in the Union Budget 2023, designed exclusively to encourage women’s financial participation and savings habits. The scheme offers a guaranteed 7.5% per annum interest rate compounded quarterly for a 2-year tenure — one of the highest government-guaranteed rates available at the time of its launch.
The scheme was available for new deposits from April 1, 2023 to March 31, 2025. Accounts opened during this window continue to earn 7.5% interest for 2 years from the date of deposit. It is operated through post offices across India and select authorised banks including Bank of Baroda, Canara Bank, Bank of India, Union Bank, Central Bank, and others.
Key Features at a Glance
| Feature | Details |
|---|---|
| Interest Rate | 7.5% per annum (compounded quarterly) |
| Tenure | 2 years from date of deposit |
| Minimum Deposit | Rs 1,000 |
| Maximum Deposit | Rs 2,00,000 per account |
| Eligible Depositor | Women and girls (Indian residents); minors through guardian |
| Number of Accounts | One account per eligible individual (plus one for minor girl) |
| Joint Accounts | Not permitted |
| Available At | All post offices; select scheduled banks |
| Subscription Period | April 1, 2023 to March 31, 2025 |
| Tax Deduction Benefit | None (not under 80C) |
| TDS | Not applicable (self-declare interest in ITR) |
Maturity Amount Calculation
MSSC interest is compounded quarterly at 7.5% per annum. The effective annual yield on quarterly compounding is approximately 7.71%. Maturity amounts for different deposit levels:
| Deposit Amount | Maturity After 2 Years | Total Interest Earned |
|---|---|---|
| Rs 10,000 | Rs 11,602 | Rs 1,602 |
| Rs 25,000 | Rs 29,011 | Rs 4,011 |
| Rs 50,000 | Rs 58,011 | Rs 8,011 |
| Rs 1,00,000 | Rs 1,16,022 | Rs 16,022 |
| Rs 2,00,000 | Rs 2,32,044 | Rs 32,044 |
Use the Mahila Samman Calculator on CalcWise to compute your exact maturity amount based on deposit date and amount.
Who Can Open an MSSC Account?
The scheme is available to:
- Any woman who is an Indian resident, regardless of age — from newborns (through guardian) to senior citizens
- A parent or legal guardian on behalf of a minor girl child
- Women of all income levels — there is no minimum or maximum income requirement
Not eligible:
- Non-Resident Indians (NRIs)
- Male individuals (even as joint account holders)
- Companies, trusts, or organisations
How to Open an MSSC Account
- Visit your nearest post office or an authorised bank branch
- Fill in the MSSC application form (Form-1)
- Submit KYC documents: Aadhaar card, PAN card (for deposits above Rs 50,000), and passport-size photographs
- Deposit the chosen amount (minimum Rs 1,000; maximum Rs 2,00,000) via cash, cheque, or demand draft
- Receive the MSSC passbook or certificate as proof of deposit
- Nominee designation is recommended at the time of account opening
Premature Withdrawal Rules
MSSC allows partial and premature withdrawal under specific conditions:
| Withdrawal Scenario | Condition | Interest Rate Applied |
|---|---|---|
| Partial withdrawal (up to 40%) | After 1 year from opening, once only | Full 7.5% on withdrawn amount |
| Full premature closure — death of account holder | Any time | 7.5% for completed period |
| Full premature closure — compassionate grounds | Any time with documentation | 7.5% for completed period |
| Full premature closure — before 6 months | Special cases only | Post Office savings rate (4%) |
| Full premature closure — 6 months to 1 year | Permitted with penalty | 7.5% minus 2% = 5.5% |
| Full premature closure — after 1 year | Permitted with penalty | 7.5% minus 1% = 6.5% |
Tax Treatment of MSSC
Interest earned on MSSC is fully taxable as income from other sources. Unlike PPF or SSY, MSSC does not offer EEE (Exempt-Exempt-Exempt) tax status. Key tax points:
- Interest accrues quarterly and must be reported in ITR each year — not just at maturity
- No TDS is deducted by post offices on MSSC interest — self-reporting in ITR is the investor’s responsibility
- For women with total income below Rs 3 lakh (new regime) or Rs 2.5 lakh (old regime), the interest is effectively tax-free due to exemption limit
- MSSC deposit does not qualify for deduction under Section 80C
- The maturity amount (principal + interest) is received tax-paid at withdrawal
MSSC vs Other Women-Focused Savings Options
| Scheme | Interest Rate | Tenure | Max Deposit | Tax Benefit |
|---|---|---|---|---|
| Mahila Samman Savings Certificate | 7.5% (quarterly) | 2 years | Rs 2 lakh | None |
| Sukanya Samriddhi Yojana (girl below 10) | 8.2% | Till age 21 | Rs 1.5L/year | EEE (80C) |
| PPF | 7.1% | 15 years | Rs 1.5L/year | EEE (80C) |
| Senior Citizen Savings Scheme (60+) | 8.2% | 5 years | Rs 30 lakh | 80C (deposit) |
| NSC | 7.7% | 5 years | No limit | 80C (deposit) |
| Bank FD (major banks) | 6.5-7.5% | Flexible | No limit | 80C (5-yr FD) |
MSSC Investment Checklist
- Check if you are within the deposit window — accounts can only be opened through March 2025
- Deposit the maximum Rs 2 lakh to maximise fixed-rate guaranteed returns
- Open one account in your name and one for any minor girl child (if applicable)
- Submit PAN if depositing above Rs 50,000
- Designate a nominee at account opening
- Report MSSC interest each year in your ITR under income from other sources
- Plan partial withdrawal (40%) after 1 year only if genuinely needed — it reduces compounding benefit
- Use the Mahila Samman Calculator to confirm maturity amount before depositing
🧮 Free Calculators — Use Them Now
No login required. Updated for FY 2025-26.
Frequently Asked Questions
Mahila Samman Savings Certificate (MSSC) is a one-time special small savings scheme launched by the Government of India in Budget 2023 specifically for women and girls. It offers a guaranteed 7.5% per annum interest rate (compounded quarterly) for a 2-year tenure. Deposits between Rs 1,000 and Rs 2 lakh can be made. The scheme was available for deposits from April 2023 to March 2025. Accounts opened within this window continue to earn 7.5% for 2 years from the date of deposit. The scheme is operated through post offices and select authorised banks.
MSSC is available to women and girls of any age who are Indian residents. A woman can open an account in her own name. A guardian can open an account on behalf of a minor girl child. There is no age restriction — the scheme is open to all women from infants to senior citizens. NRIs are not eligible to open MSSC accounts. Each eligible individual can open only one MSSC account (plus one on behalf of a minor girl). Accounts opened in joint names are not permitted.
MSSC offers 7.5% per annum interest, compounded quarterly. On a maximum deposit of Rs 2 lakh for 2 years: quarterly compounding at 7.5% yields a maturity value of approximately Rs 2,32,044. The effective annual yield on quarterly compounding at 7.5% is approximately 7.71%. Interest is credited to the account quarterly but paid out only at maturity along with the principal. This 7.5% rate was significantly higher than most bank FDs at the time of launch, making it attractive for women investors.
Yes, interest earned on Mahila Samman Savings Certificate is taxable as income from other sources at your applicable income tax slab rate. TDS is not deducted by post offices on MSSC interest. However, you must self-declare and pay tax on the interest each year as it accrues, not just at maturity. For women with total income below the basic exemption limit (Rs 3 lakh under new regime), the MSSC interest would be tax-free in practice. Senior women above 60 years have a higher exemption limit. The scheme does not qualify for any special tax deduction under 80C.
Partial and premature withdrawal is allowed under MSSC with conditions. After 1 year from account opening, up to 40% of the eligible balance can be withdrawn once. Full premature closure is allowed after 6 months from opening in cases of account holder’s death, on extreme compassionate grounds (life-threatening illness), or on specific court orders. Premature closure before 1 year (other than the above special cases) results in interest being paid at 2% below the applicable rate. After 1 year (but before maturity), premature closure is allowed with a 1% penalty on interest earned.
MSSC at 7.5% compares favourably against most fixed deposits (6.5-7% for major banks) and PPF (7.1%) for the 2-year tenure, with the advantage of being a government-backed instrument. However, SCSS (8.2%) and NSC (7.7%) offer higher rates for those eligible. MSSC stands out for being specifically available to women and girls (including minors), making it ideal for building a dedicated savings corpus. For amounts above Rs 2 lakh per person, other instruments like FD, SCSS, or NSC must be used in conjunction. The 2-year lock-in is shorter than most competing government schemes.