Four banks offering this post office small saving scheme earning 7.5% interest

The Department of Economic Affairs, Ministry of Finance, authorised all Public Sector Banks and qualified Private Sector Banks to adopt and operationalize the Mahila Samman Savings Certificate, 2023 through an e-gazette announcement published on 27 June 2023,

Four banks offering Mahila Samman Savings Certificate

1) Bank of Baroda

Bank of Baroda has rolled out Mahila Samman Savings Certificate, 2023 scheme across India

2) Union Bank of India

Union Bank of India has rolled out Mahila Samman Savings Certificate, 2023 scheme across India

3) Canara Bank

Canara Bank has rolled out Mahila Samman Savings Certificate, 2023 scheme across India.

According to the Canara Bank official tweet, “Canara Bank is proud to introduce the Mahila Samman Savings Certificate (MSSC) Scheme across India. As your trusted banking partner, we are committed to supporting women’s financial growth and empowerment. Contact your nearest Canara Bank branch to learn more.”

4) Bank of India

Bank of India is the first lender to operationalise the Mahila Samman Savings scheme at all its branches, MD and CEO Rajneesh Karnatak said.

Mahila Samman Savings Certificates: Interest rate

The Mahila Samman Savings Certificate (MSSC) Scheme is a new initiative by the Government for women. MSSC is a 2-year deposit scheme, which offers an interest rate of 7.5% per annum. The scheme is valid for a two-year period up to March 31, 2025.

Mahila Samman Savings Certificates: Eligibility

All women are eligible to open an account, which can be opened for herself or by a guardian (female or male) on behalf of a minor girl. 

Mahila Samman Savings Certificates: Deposit amount

Under this scheme, a single account holder can make a cumulative deposit of ₹200,000 – either at one time or in phases with a minimum deposit of ₹1,000, in multiples of ₹100. 

Individuals can open multiple accounts but a minimum time gap of three months is to be maintained between the existing account and the opening of another account. 

Mahila Samman Savings Certificates: Withdrawal rules

Partial withdrawal can be initiated by the account holder or the Legal Guardian (in case of a minor) up to 40% of the eligible balance after completion of one year from the date of opening of the account.

Mahila Samman Savings Certificates: Taxation rules

The interest is compounded quarterly and credited to the Mahila Samman Savings Certificate account. All earnings under the Mahila Samman Savings Certificate will be taxable as per existing income tax provisions. However, TDS (Tax Deducted at Source) will not be deducted under the scheme.

Updated: 18 Jul 2023, 02:49 PM IST