Mahila Samman Savings Scheme: Limited Time Left to Get 7.5% Interest

The Mahila Samman Savings Certificate (MSSC) is a government-backed small savings scheme designed exclusively for women and girls. Launched to promote financial inclusion and economic independence, this scheme offers a secure and rewarding investment opportunity with a fixed tenure of two years. With an attractive interest rate and flexible withdrawal provisions, it serves as a reliable savings option for women seeking financial growth.

Individuals considering investing in this small savings scheme should note the upcoming deadline. The Mahila Samman Savings Certificate scheme will close for new investments on March 31, 2025.

Eligibility and Investment Details

The MSSC scheme is open exclusively to women and girls, with the provision for guardians to invest on behalf of minors. The minimum deposit amount required is Rs 1,000, while the maximum permissible investment is Rs 2 lakh per individual. The scheme ensures steady returns by offering an annual interest rate of 7.5%, which is compounded quarterly and credited to the account. Upon maturity, the accumulated amount, including interest, is paid out in full. Additionally, account holders can withdraw up to 40% of their deposit after one year, providing financial flexibility in case of urgent requirements.

Tax Implications

While the MSSC offers high returns, it does not provide tax benefits under Section 80C of the Income Tax Act. The interest earned is classified under “Income from Other Sources” and is taxable accordingly. Investors should factor in these tax implications while comparing MSSC with other tax-saving investment alternatives.

Interest Rate Comparison with Bank Fixed Deposits

For those evaluating alternative investment options, a comparison with two-year fixed deposit (FD) rates across major banks is essential.

The State Bank of India (SBI) offers a 6.80% interest rate for general citizens, with senior citizens receiving an additional 50 basis points for terms between one year and under two years. HDFC Bank provides a 7.25% interest rate for general depositors, with a similar 50-basis-point benefit for seniors on deposits ranging from 18 months to under two years. Canara Bank offers a peak rate of 7.25% for a 444-day FD, while Axis Bank matches this rate for tenures between 15 months and two years, granting senior women an additional 0.50%.

Conclusion

The Mahila Samman Savings Certificate stands out as a structured and secure investment tailored for women. With a competitive interest rate and partial withdrawal benefits, it presents a lucrative savings option. However, potential investors should weigh tax considerations and compare available alternatives to make informed financial decisions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.