Mahila Samman Savings Certificate (MSSC Scheme)

 

Mahila Samman Saving Certificate (MSSC) is a new small savings scheme was introduced in Budget 2023, specially designed for women investors to encourage investments. 

In line with other small savings schemes like PPF, SSY, NSC, and SCSS, this new MSSC scheme comes in to bridge the gap in the existing schemes, especially for adult and rural Indian women.

Who can open Mahila Samman Savings account

Mahila Samman Savings account can be opened by a woman for herself, or by the guardian on behalf of a minor girl. An account opened under this scheme will be a single holder type account and the account can be opened in the Post Office or any authorized bank.

The account can be opened on or before the 31st March, 2025.

Limit on Mahila Samman Savings Certificate

The minimum amount to be invested is Rs 1000 and any sum in multiples of one hundred rupees may be deposited in an account and no subsequent deposit shall be allowed in that account. Under the scheme, the maximum investment limit allowed is Rs 2 lakh. So, it is one time fixed lump sum deposit (unlike PPF), with the upper limit being 2 lacs.

Interest rate

The deposits made under this scheme will fetch a fixed interest at the rate of 7.5 per cent per annum. The interest will be compounded quarterly and credited to the account.

MSSC Maturity and Payment

The notification said that the deposit shall mature on completion of two years from the date of the deposit and the eligible balance may be paid to the account holder on maturity. After 2 years, the account cannot be continued further (unlike PPF).

MSSC Partial Withdrawal

An MSSC accountholder will be allowed to withdraw a maximum up to 40% of the eligible balance once after the expiry of one year from the date of opening of the account but before the maturity of the account. The notification further said that in case of an account opened on behalf of a minor girl, the guardian may apply for the withdrawal for the benefit of the minor girl.

Where to open MSSC account

You can open the MSSC account in Post Office and authorized banks.

Last date for opening MSSC account

The last date for opening MSSC account is 31st March 2025. The scheme will likely cease to exist after 31st March 2025.

Comparison with other Small savings Schemes

Summary

Compared to other small savings schemes like Sukanya Samriddhi Yojna which has a maximum investment limit of Rs 1.5 lakh in a financial year, and also has a long lock-in period of 21 years, the Mahila Samman Savings Patra provides an opportunity to invest up to Rs 2 lakh for a tenure of 2 years, making it a better investment option for female investors.

However, considering the upper limit of 2 lacs investment, this seems to be more suited for rural areas, rather than urban.

Regards

Manoj Arora
Official Website