Small Investment, High Returns: A complete guide to investing in Mahila Samman Savings Certificate

Mahila Samman Savings Certificate (MSSC) is a unique savings scheme introduced by the Government of India in 2023

If you are a woman seeking a safe investment option with guaranteed returns, try the Mahila Samman Savings Certificate. It has an investment threshold as low as ₹1,000 and returns of 7.5%, which are higher than most fixed deposits or Public Provident Funds. It is also a good investment for parents or guardians wishing to invest for their daughters’ future. Its two-year lock-in period makes it suitable for those with short-term financial goals like planning for a small business or saving for education.

Are you a woman looking to make small investments for guaranteed returns? The Mahila Samman Savings Certificate (MSSC) is a unique savings scheme introduced by the Government of India in 2023 to encourage financial inclusion for women and girls.

If you are looking for attractive interest rate, easy accessibility and guaranteed returns, this scheme is for you. You can invest as little as ₹1,000 and you will be able to benefit from a 7.5% annual interest rate, which is more than most fixed deposits.

Additionally, MSSC has a two-year lock-in period, which makes it suitable if you have short-term financial goals.

Here, we look at what MSSC is, its benefits, and how you can invest in it to secure your financial future.

What is MSSC?

Launched as part of the 2023 Union Budget, the MSSC is a small savings scheme designed to empower women by offering a safe and high-return investment option. The scheme is available for a limited period, from April 2023 to March 2025, giving women a window of opportunity to invest and grow their savings.

Key Features:

Interest Rate: Offers a 7.5% annual interest rate, compounded quarterly.

Eligibility: Available to women and minor girls. Guardians can open accounts on behalf of minors.

Tenure: The scheme has a lock-in period of two years, which makes it ideal for short-term goals.

Investment Limit: You can invest a minimum of ₹1,000 and a maximum of ₹2 lakhs.

This scheme stands out because of its focus on women, offering higher returns than many traditional saving options like fixed deposits and even some other small savings schemes.

Why Should You Invest in MSSC?

1. High Guaranteed Returns

MSSC offers an attractive interest rate of 7.5% per annum, which is compounded quarterly. This is significantly higher than the returns from savings accounts, many fixed deposits, or even the Public Provident Fund (PPF), which offers 7.1%.

2. Short-Term Lock-In Period

Unlike many small savings schemes that come with longer tenures (such as the 15-year lock-in for PPF), MSSC has a two-year lock-in period, making it suitable for those with short-term financial goals. After two years, you can withdraw the entire maturity amount, or opt for a partial withdrawal after one year if needed.

3. Partial Withdrawal Option

MSSC offers the flexibility to withdraw up to 40% of the invested amount after one year. This is particularly beneficial in case of financial emergencies or short-term needs​.

4. Government-Backed Security

Since the MSSC is backed by the Indian government, it is a highly secure investment option with no credit risk. Your principal and interest are both guaranteed, providing peace of mind to women investors​.

How to Invest in MSSC

You can invest in MSSC by opening an account at any post office or participating public sector bank. The steps are straightforward and require minimal paperwork.

Steps to Open an MSSC Account at a Post Office:

Visit the Post Office: Go to your nearest post office to get the application form for MSSC.

Fill the Application Form: Submit your personal details, investment amount, and necessary KYC documents such as Aadhaar, PAN card, and proof of address.

Make Your Deposit: The deposit can be made through cash or cheque.

Receive the Certificate: Once your application is processed, you will be issued a Mahila Samman Savings Certificate as proof of investment​.

Steps to Open an MSSC Account at a Bank:

Visit the Bank: Go to a public sector bank like SBI, Canara Bank, or Bank of Baroda.

Submit Documents: Complete the application form and submit KYC documents.

Make the Deposit: The investment can be made through cash, cheque, or online transfer.

Collect the Certificate: After processing, the bank will issue your certificate​.

Premature Closure and Withdrawal

While the MSSC comes with a two-year lock-in period, premature withdrawal is allowed under specific circumstances:

After 6 Months: You can close your account after six months from the opening date, but at a reduced interest rate of 5.5%.

Partial Withdrawal: After one year, you can withdraw up to 40% of the balance.

The Mahila Samman Savings Certificate is an excellent savings tool for women, offering high returns, security, and flexibility. It is a great way to achieve your financial goals while staying risk-free. With its government backing and competitive interest rates, MSSC stands out as a smart and practical investment choice for women looking to empower themselves financially.