Finance Minister Nirmala Sitharaman did not propose any extension for the Mahila Samman Savings Certificate (MSSC) in Union Budget 2025 on the February 1 session. The MMSC scheme is expected to end on March 31, 2025, this means women investors have time till March 2025 to invest in the scheme.
The scheme offers a fixed interest rate of 7.5 per cent per annum, which is more than the interest rate offered by banks on fixed deposits at the moment.
The maximum investment limit under this scheme is up to Rs 2,00,000.
Mahila Samman Savings Certificate
FM Sitharaman announced MSSC during the Union Budget 2023, on March 31, 2023.
This small savings scheme is for women and girls in India. The scheme was introduced in an effort to inaugurate the Azadi ka Amrit Mahotsav. The scheme was valid for a two-year period till March 31, 2025.
Mahila Samman Savings Certificate (MSSC) FAQ
1. What is the Mahila Samman Savings Certificate (MSSC)?
The Mahila Samman Savings Certificate is a government-supported small savings scheme launched to support women and girls. It provides a safe investment option with guaranteed returns and gives an impetus to the financial inclusion of women.
2. Who can invest in MSSC?
A woman or a girl starts their MSSC account in their name. Additionally, a guardian can also open an account on behalf of a minor girl.
3. What is the investment limit under MSSC?
The minimum investment starts from Rs 1000 and the maximum amount can go up to Rs 2,00,000 in a fiscal year.
4. What is the interest rate for MSSC?
The scheme gives a fixed interest rate of 7.5 per cent annually. Also, the interest rate is compounded in every quarter.
5. What is the tenure of the scheme?
The maturing tenure of MSSC is 2 years from the date of opening the account.
6. Can I make multiple deposits in MSSC?
An individual can contribute to multiple accounts under the same scheme but the total sum of all accounts should not exceed the maximum limit of Rs 2,00,000.
7. Is partial withdrawal allowed?
A partial withdrawal of around 40 per cent of the balance is possible but after the completion of 1 year from the date of account opening.
8. Is premature closure of the account allowed?
Premature closure is possible in these cases:
Death of account holder.
Extreme hardship
After completing 6 months, the account can be shit down, but interest will be adjusted accordingly.
9. How to open an MSSC account?
An individual can open at an authorised post office or bank by filling out an application form, identification form, documents and the minimum amount.
10. What are the tax implications of MSSC?
The interest gained from MSSC is taxable based on the individual’s income tax slab.
11. What happens on maturity?
By the end of the maturity period of 2 years, the account holder will receive the total amount along with the interest gained to their bank account.
13. Who can benefit the most from MSSC?
The scheme is suitable for women seeking short-term investment tools and financial security.
14. Is a nomination facility available?
Nomination is allowed under the scheme.
