Mahila Samman Savings Certificate - Interest Rate, Features, Eligibility

If you are a woman (or guardian of a girl) looking for a safe, government-backed way to save for a short term, the Mahila Samman Savings Certificate (MSSC) might be just right. This scheme offers a clear interest rate, fixed tenure, and special rules built just for women and girls.

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What is the Mahila Samman Savings Certificate

The MSSC is a small savings scheme launched by the government of India for women and girl children. Here are the key points in easy language:

• It allows a woman (or guardian on behalf of a girl child) to deposit money under the scheme.
• The tenure (time period) is 2 years from the date of deposit.
• It carries a fixed interest rate of 7.5% per annum, compounded quarterly.
• The scheme was open for deposits between 1 April 2023 and 31 March 2025, after which no new deposits were accepted.

So essentially, if you (as a woman) made the deposit under MSSC during the allowed period, you would have your money locked for two years, earning the marked interest rate, with government backing.

Eligibility

Who can open an MSSC account? Here are the rules in simple terms:

• You must be an Indian woman. Or if you are a guardian, you can open the account for a minor girl child.
• There is no upper age limit specified for women. Girls (minor) accounts are allowed under guardian.
• The account type must be single-holder (joint accounts are not allowed).
• The deposits must be made before the last date (March 31 2025) for new opening.

If you tick all these boxes, you were eligible to open the MSSC (during the open period).

Key Features of MSSC

Here are the features (what the scheme offers), written simply:

• Minimum and maximum investment: The minimum deposit you could make was ₹1,000, and the maximum deposit limit across all your accounts under MSSC was ₹2,00,000.
• Multiples of deposit: Deposits were allowed in multiples of ₹100, above the minimum.
• Tenure (lock-in): The scheme locks in for 2 years from date of deposit. You would get maturity amount after two years.
• Interest rate: 7.5% per annum, compounded quarterly.
• Partial withdrawal: After completion of one year from opening, you were allowed to withdraw up to 40% of the eligible balance once, before maturity.
• Premature closure: The scheme allowed closure before maturity under certain special cases (death of account holder, guardian death, life-threatening illness etc). If closed early without these grounds, interest rate would be reduced by 2% (i.e., you’d get 5.5% instead of 7.5%) if you closed after 6 months.
• Government backed scheme: Since it is a small savings scheme backed by the government, the risk to capital is minimal.

Interest Rate & How It Works

• The MSSC offered 7.5% interest per annum. This is higher than many fixed-deposit interest rates at the time.
• Interest is compounded quarterly (every three months) and credited as per rules.
• Example: If you invested ₹2,00,000, then after first year the interest would be approx ₹15,000; after second year you’d get slightly more because of compounding. Total maturity would then be about ₹2,31,125.
• If you closed the account early without proper reason (after 6 months), the interest rate would drop to 5.5% per annum.

Benefits of MSSC

Here are the benefits, described in beginner-friendly language:

• It gives women and girl children a dedicated saving scheme created especially for them  this encourages saving and helps build financial security.
• The interest rate is relatively high (7.5%) for a short-term (2 years) scheme, making it attractive for someone wanting medium-term safe savings.
• It has easy eligibility criteria for women/girls which means many can invest.
• Partial withdrawal after 1 year (up to 40%) gives some flexibility if funds are needed earlier.
• Being backed by the government means your money is safer than many riskier investments.
• The scheme helps diversify your savings portfolio it can be used alongside other savings/investment options.

Points to Note / Things to Check

• Remember that no new investments were accepted after 31 March 2025. So if you haven’t opened an account yet, you cannot do so now.
• Though partial withdrawal is allowed after 1 year, full maturity benefit comes only after 2 years if you take out too early, you lose some benefit.
• The scheme does not automatically give tax deductions under Section 80C (at least as per current notifications)  so you should check current tax status.
• Always keep your certificate and documents safe you will need them at maturity or for withdrawal.
• Since maximum deposit is limited (₹2 lakh) and tenure is short (2 years), ensure your savings goal matches this timeframe.
• Compare with other schemes if you might need longer-term or tax-benefit features.

Conclusion

The Mahila Samman Savings Certificate is a targeted savings scheme designed for women and girls offering a fixed tenure of two years and a good interest rate of 7.5% per annum. It presents a safe, government-backed option for short-term savings with some flexibility built in. If you invested in it when it was active, you can expect decent returns with minimal risk. For future savings, it's important to check if similar schemes are open or consider other alternatives depending on your goals.