What is a Mahila Samman Saving Certificate?
The Indian government introduced the Mahila Samman Savings Certificate, a fixed-income investment program designed exclusively for women and girls, as part of Budget 2022-23. The scheme provides a one-time investment option with a fixed interest rate higher than other investment options such as PPFs, National Savings Certificates (NSC), and fixed deposits. This scheme is valid from April 2023 to March 2025, and it offers an annual interest rate of 7.5% for investments up to Rs. 2 lakh.
The primary aim of the Mahila Samman Savings Certificate scheme is to encourage women’s empowerment by providing a secure and reliable investment opportunity. This scheme is ideal for short-term investments and provides an excellent alternative to fixed deposits.
This blog will provide all the information you need about Mahila Samman Savings Certificate, including its features, benefits, eligibility criteria, and how to invest in it.
Features and benefits of the Mahila Samman Saving Certificate
Here are some of the key features of the Mahila Samman Saving Certificate:
- Risk-free government-backed scheme: The Mahila Samman Savings Certificate is a small saving scheme. Thus, the scheme does not carry any market risk.
- Eligibility conditions: Only girl children and women are allowed to purchase the Mahila Samman Saving Certificate.
- Investment term: The Mahila Samman Saving Certificate has a two-year term. It is a one-time investment option available for the period 2023 to 2025.
- Competitive interest rate: The Mahila Samman Savings Certificate offers a fixed interest rate of 7.5% per annum. This interest exceeds most fixed deposits and other common small savings plans.
- Investment limit: The maximum investment limit for the Mahila Samman Saving Certificate is Rs. 2 lakh, meaning that a woman can invest up to Rs.2 lakh in the plan. The minimum investment amount has not been announced yet.
- Tax benefits: Although small savings schemes are frequently eligible for deductions under section 80C of the Income Tax Act, the tax benefits and structure for Mahila Samman Savings Certificate have not been determined.
- Premature withdrawals: Partial withdrawals are allowed under this scheme.
- Convenient application process: You can apply for the Mahila Samman Saving Certificate by visiting the nearest post office or bank. The entire process is discussed in detail below.
How to start investing in Mahila Samman Saving Certificate
You must follow the steps given below to start investing in the Mahila Samman Savings Certificate:
- Visit the nearest bank branch or post office offering the scheme.
- Request the application form for Mahila Samman Bachat Patra Yojana.
- Fill out the application form with complete personal and financial details.
- Submit the application form with the required documents, including identity and address proof.
- Choose the deposit amount and deposit cash or cheque.
- Once you deposit the amount, you will receive the certificate as proof of investment in the Mahila Samman Savings Certificate.
Mahila Samman Saving Certificate calculation
Suppose you invest Rs. 2 lakh for two years at an interest rate of 7.5%. Your returns will amount to Rs. 15,427 after one year and Rs. 32,044 after two years. Thus, the total Rs. 2 lakh investment will be Rs. 2,32,044 after two years.
How does it compare with other schemes?
The table below highlights the differences between MSSC and other saving-investment schemes.
| Parameters | MSSC | PPF | National Savings Certificate (NSC) | Senior Citizen Savings Scheme (SCSS) | Sukanya Samriddhi Yojana (SSY) |
| Eligibility criteria | Girl child and women | Individual Indian citizen | Any individual, including NRIs | Senior citizens aged above 60 years | Only in the name of a girl child before she reaches 10 years of age |
| Interest rate | 7.5% | 7.1% | 7% | 8% | 7.6% |
| Tenure | 2 years | 15 years | 5 years | 5 years | 21 years from opening the account or when the girl child reaches 18 years |
| Investment amount | Maximum: Rs. 2 lakh | Minimum: Rs. 500
Maximum: Rs 1.5 lakh |
Minimum: Rs. 100
Maximum: No limit |
Minimum: Rs. 1000
Maximum: Rs. 30 lakh |
Minimum: Rs. 250
Maximum: Rs. 1.5 lakh |
| Premature withdrawal | Allowed | After 7 years | Allowed in some circumstances | Can be closed at any time | Allowed in certain circumstances |
| Tax benefits | Not yet determined | Available under section 80C of the Income Tax Act | Deductions of up to Rs. 1.5 lakh under section 80C | Deductions of up to Rs. 1.5 lakh under section 80C | Exemption under section 80C |
FAQs
What is the interest rate of the Mahila Savings Certificate?
Mahila Samman Savings Certificate comes with a fixed interest rate of 7.5%, higher than other small saving schemes, including PPFs and FDs.
What is the investment limit of the Mahila Samman Savings Certificate?
The maximum amount you can invest in the Mahila Samman Saving Certificate is Rs. 2 lakh. The minimum investment amount is yet to be determined.
Are there any tax benefits of the Mahila Samman Savings Certificate?
The taxation structure and benefits of the MSSC scheme are yet to be determined. However, most small saving schemes offer tax benefits under section 80C of the Income Tax Act.
What is the tenure of the Mahila Samman Savings Certificate?
The tenure of the Mahila Samman Saving Certificate is 2 years, starting from April 2023 to 2025.