The Mahila Samman Savings Certificate is a small-scale savings initiative designed specifically for female investors. Its primary objective is to enhance women's involvement in financial investments and promote their economic inclusion. Let's delve into the details of this scheme.
What Is the Mahila Samman Saving Certificate?
The MSSC is a government-backed savings plan tailored for women, introduced in the 2023 Budget. Its purpose is to empower women by encouraging their active participation in investment activities. Under this scheme, women can secure a guaranteed fixed interest rate of 7.5%. This investment opportunity is available for a limited two-year period, running from April 1, 2023, to March 31, 2025. Beyond this timeframe, participation in the scheme is not possible.
Mahila Samman Savings Certificate (MSSC) Features
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Eligibility |
Any women, including minor |
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Interest rate |
7.50% |
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Minimum investment |
Rs 1,000 |
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Maximum investment |
Rs 2 lakh (combined in all accounts) |
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Maturity period |
2 years |
Features of the Mahila Samman Savings Certificate Scheme
Assured Returns: This government-backed program guarantees a fixed rate of return, providing security against market fluctuations. Your investment remains unaffected by market ups and downs.
Deposit Limits: To begin investing in this program, you can start with a minimum deposit of Rs. 1,000, with additional deposits in multiples of Rs. 100 not permitted. The maximum allowable total deposit across one or multiple accounts is Rs. 2 lakh. While you can open multiple accounts, the collective investment must not exceed Rs. 2 lakh, and there should be a three-month gap between opening dates of existing and new accounts.
Maturity: This scheme includes a two-year lock-in period, meaning you will receive your maturity amount two years after opening the account.
Nomination: The Mahila Samman Savings Certificate offers a nomination feature, allowing you to designate up to four nominees per account and specify their respective shares in the fund. You can also include a minor as a nominee, but you must provide details of the guardian. In the unfortunate event of your demise, your nominated individuals will receive the final corpus from your account in the proportions you have specified on the form.
Multiple Accounts: Under the Mahila Samman Savings Certificate scheme, you have the option to open multiple accounts in your name, subject to certain conditions:
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The total investment across all accounts must not exceed Rs. 2 lakh.
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There should be a minimum three-month gap between opening existing and new accounts.
Partial Withdrawal:
The scheme also provides a partial withdrawal facility, allowing you to access a portion of your balance before maturity. This option becomes available one year after opening the account, and you can withdraw up to 40% of the eligible balance.
Premature Closure:
While the scheme has a standard maturity period of two years, there are exceptional circumstances under which you can close the account before maturity:
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In the event of the account holder's demise.
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In cases of extreme compassion, such as the account holder facing a life-threatening illness or the guardian's passing, provided the relevant documents are provided.
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After six months from the account opening date, for any reason, but with a reduction in the interest rate by 2%, bringing it to 5.5%
Required Documents:
To invest in the Mahila Samman Savings Certificate, you must fulfill specific documentation requirements. Here are the necessary documents for opening an account:
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Mahila Samman Savings Certificate account opening form.
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KYC documents, which include Aadhaar and PAN card.
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KYC form for the new account holder.
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Pay-in-slip
Mahila Samman Savings Certificate Eligibility Criteria
The Mahila Samman Savings Certificate scheme is exclusively designed for women, allowing any woman above the age of 18 to invest in it independently. In the case of minors, the guardian can open an account on behalf of the girl.
Tax Benefits of the Mahila Samman Savings Certificate
Typically, most small-savings schemes offer tax benefits. However, the government has not provided specific information regarding the tax implications of this scheme. Until further details are disclosed, it can be assumed that normal taxation, based on the applicable slab rates, would apply to this scheme.
How to Open a Mahila Samman Savings Certificate Account?
The Mahila Samman Savings Certificate Scheme is offered through India Post. Here are the steps to invest in this scheme:
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Visit your nearest post office.
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Complete the account opening form (Form I), which is available at the post office counter and can also be downloaded from the India Post website. Form I must be submitted on or before March 31, 2025.
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If you are a new account holder at Indian Post, you must also submit the KYC form.
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Provide KYC documents, such as your Aadhaar card, PAN, address proof, etc.
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Deposit the investment amount in cash or by cheque.
After submitting the completed form and making the payment, the post office will issue a scheme certificate.
