If you’re a woman in India looking for a safe, rewarding way to grow your savings, the Mahila Samman Saving Scheme might be just the perfect fit. Offering a fixed 7.5% annual return, this government-backed scheme is designed to empower women financially — and it’s available only for a limited time until March 31, 2025.
Whether you’re a parent investing for your daughter’s future, a working woman planning ahead, or simply someone looking for a reliable short-term option, this scheme checks all the right boxes. In this article, we’ll break down everything you need to know about the Mahila Samman Saving Certificate (MSSC) — in a way that’s simple enough for a 10-year-old to understand, yet detailed enough to help professionals make informed decisions.
Mahila Samman Saving Scheme
| Feature | Details |
|---|---|
| Interest Rate | 7.5% per annum, compounded quarterly |
| Maximum Investment | ₹2 lakh per woman/girl child |
| Minimum Investment | ₹1,000 (in multiples of ₹100) |
| Tenure | 2 years (fixed maturity) |
| Eligibility | Women and girl children (Guardians can open accounts for minors) |
| Partial Withdrawal Allowed | Up to 40% after 1 year |
| Taxation | Interest is taxable, but TDS not applicable below ₹40,000 |
| Availability Period | From April 2023 to March 31, 2025 |
| Where to Open | Authorized post offices and participating banks |
The Mahila Samman Saving Scheme is a smart, government-backed savings plan that offers guaranteed 7.5% returns for women over just two years. With its limited-time availability, high safety, and decent flexibility, it’s one of the best low-risk investments available right now for women in India.
Whether you’re planning for the short term or building a financial foundation, this scheme helps you take control of your money and watch it grow — securely and steadily.
What is the Mahila Samman Saving Scheme?
The Mahila Samman Savings Certificate is a one-time small savings scheme announced in Budget 2023 to promote financial inclusion among women. Launched by the Government of India, the scheme is available from April 1, 2023, to March 31, 2025.
This is not a recurring deposit or a mutual fund. It’s a fixed deposit-like product where your money earns a guaranteed 7.5% interest rate, which is higher than most traditional bank FDs.
This scheme is especially appealing because it provides:
- Safety (being government-backed),
- Flexibility (partial withdrawal option), and
- Solid returns (7.5% is very attractive in today’s rate scenario).
see also: Only LIC is Giving 16% Guaranteed Return! You Will Not Get Such an Opportunity Again
Who Can Invest in the Mahila Samman Saving Certificate?
The scheme is open only to women. If the investor is a minor girl, a guardian or parent can open the account on her behalf.
You are eligible if you are:
- A woman above the age of 18.
- A parent or legal guardian of a girl child (you can invest in her name).
This makes it an ideal gift for young girls, students, or even as a backup savings option for homemakers.
How Much Can You Invest?
The minimum deposit is ₹1,000, and you can invest in multiples of ₹100. The maximum investment per individual is ₹2 lakh under this scheme.
So if you have two daughters, you can invest ₹2 lakh in each of their names as separate accounts.
Interest Rate and Returns: How Much Will You Earn?
The scheme offers a fixed 7.5% interest, compounded quarterly.
Here’s a simple example:
| Investment | Return After 2 Years |
|---|---|
| ₹1,00,000 | ₹1,15,615 (approx) |
| ₹2,00,000 | ₹2,31,230 (approx) |
Unlike market-linked products, your return is guaranteed — no surprises!
Tenure and Withdrawal Rules
- Tenure: 2 years from the date of deposit. You can’t extend the maturity, but you can open a new account later.
- Partial Withdrawal: After completing 1 year, you can withdraw up to 40% of the account balance.
- Premature Closure: Allowed in specific cases like:
- Death of account holder
- Life-threatening illness
- Exceptional compassionate grounds
- Voluntary closure after 6 months (but interest will be reduced to 5.5%)
Is the Scheme Tax-Free?
No. Unlike PPF or Sukanya Samriddhi, the interest earned in MSSC is taxable under your income tax slab. However, TDS (Tax Deducted at Source) is not applicable unless the interest earned exceeds ₹40,000 in a financial year.
Good news: With a ₹2 lakh investment over two years, your interest stays below ₹40,000 per year, so most people won’t have to worry about TDS.
Where and How to Open the Account?
You can open an MSSC account at:
- Any post office across India
- Authorized public sector banks (such as SBI, Bank of Baroda, PNB, etc.)
Steps to Apply:
- Visit the nearest post office or authorized bank.
- Fill out the Mahila Samman Savings Certificate application form.
- Attach KYC documents like:
- Aadhaar card
- PAN card
- Proof of address
- Deposit your investment amount via cash, cheque, or demand draft.
- Receive the certificate confirming your investment.
Why This Scheme is a Golden Opportunity
Safe and Secure
Government-backed means zero risk. Unlike stocks or mutual funds, there’s no market fluctuation.
Better Than Bank FDs
Most major banks offer around 6.5–7% interest on 2-year FDs, and with higher lock-in periods. MSSC gives 7.5% with flexible features.
Perfect for Short-Term Goals
Whether you’re planning for your daughter’s education or saving for a small business — 2 years is a sweet spot.
Women-Only Advantage
This is one of the few financial instruments exclusively meant for female empowerment.
Who Should Invest?
- Young women and working professionals looking to diversify their savings
- Parents of girl children wanting to build a small nest egg
- Homemakers who want a safe avenue to park funds
- Senior women looking for a short-term, high-return fixed investment
see also: Invest and Get a Profit of Rs 35,000
Mahila Samman Saving Scheme FAQs
Q. Is the Mahila Samman Saving Scheme only for Indian citizens?
Yes, it is only available to resident Indian women or girl children.
Q. Can I invest more than ₹2 lakh?
No. ₹2 lakh is the maximum limit per individual across all accounts.
Q. Can I open multiple MSSC accounts?
You may open multiple accounts, but the total deposit amount across all accounts must not exceed ₹2 lakh.
Q. What if I need the money urgently?
You can withdraw 40% after 1 year, or close early after 6 months (with 2% lower interest).
Q. Is the scheme likely to be extended beyond March 2025?
As of now, the last date to invest is March 31, 2025. However, there is growing demand for its extension. Stay updated on MyScheme.gov.in or India Post.
