The Indian government introduced the Mahila Samman Savings Certificate during the 2023 Budget. This small savings scheme is exclusively for female investors and is available from April 2023 until March 2025. For example, an investment of 2 lakh rupees in the Mahila Samman Savings Certificate Scheme can give Rs 3,750 quarterly interest or Rs 15,000 annual interest at 7.5 per cent Interest rate per annum.
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What Is Mahila Samman Savings Certificate Scheme?
The Mahila Samman Savings Certificate aims to encourage and enable women to save money, fostering financial autonomy. It offers a fixed interest rate for a maximum deposit of up to Rs 2 lakh, solely in the name of women, valid for two years.
Mahila Samman Savings Certificate Scheme Interest Rate
Mahila Samman Savings certificates can be purchased at post offices or banks and offers an attractive interest rate of 7.5 per cent an annum. Interest accrues quarterly and is payable upon account closure.
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Mahila Samman Savings Certificate Scheme Interest Rate Earnings Based On Various Principle Amounts Investment
| Principal Amount (Investment) | Interest You Can Earn Per Quarter | Interest You Can Earn Per Annum |
| Rs 10,000 | Rs 187 | Rs 750 |
| Rs 1,00,000 | Rs 1,875 | Rs 7,500 |
| Rs 2,00,000 | Rs 3,750 | Rs 15,000 |
Mahila Samman Savings Certificate Scheme Eligibility Criteria
The scheme is open exclusively to female investors, including a woman or guardian opening an account on behalf of a minor girl child.
Mahila Samman Savings Certificate Scheme Deposit Limits
Investors can start with a minimum deposit of Rs 1,000. The cap for deposits is set at Rs 2 lakh across all MSSC accounts held by an individual. Notably, a second account can be opened three months after the first, subject to the overall limit.
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Samman Savings Certificate Scheme Maturity and Withdrawal
The maturity period is fixed at two years, with the maturity amount disbursed to the account holder thereafter. Additionally, the scheme offers a partial withdrawal option, allowing up to 40% of the balance to be accessed after the first year.
Tax Benefits Under Mahila Samman Savings Certificate Scheme
The interest earned under the Mahila Samman Saving Certificate is exempt from TDS deductions. However, a recent notification from the Central Board of Direct Taxes (CBDT) indicates that TDS will apply to this scheme. As outlined in Section 194A, TDS will be triggered when the annual interest accrued from the scheme reaches Rs 40,000, or Rs 50,000 in the case of senior citizens.
How To Avail Mahila Samman Savings Certificate Scheme Benefits
Open an account under the Mahila Samman Savings Certificate at post offices or authorised scheduled banks and avail benefits on the deposits.
