Calculate Your MSSC Returns
Important: The interest rate is fixed by the government for the scheme's duration. Always confirm the latest details on the official Post Office website before investing.
Your MSSC Maturity Details
All About Mahila Samman Savings Certificate (MSSC)
The Mahila Samman Savings Certificate is a special savings scheme launched by the Government of India to encourage saving and investment among women and girls. Think of it as a small, powerful tool for financial empowerment. It offers a high, fixed interest rate for a short period of just two years, making it a fantastic option for short-term goals. You can open an account at any Post Office or at many major banks.
Key Highlights: Why is MSSC So Popular?
- High Interest Rate: A fixed rate of 7.5% per annum, which is higher than most bank Fixed Deposits (FDs).
- Short Tenure: The investment period is only 2 years, perfect for short-term goals.
- For Women Only: Exclusively designed for women and girls of any age.
- Flexible Investment: Invest anywhere from ₹1,000 to a maximum of ₹2,00,000.
- Partial Withdrawal: You can take out some money after one year if you need it.
- Safe & Secure: Backed by the Government of India, so your money is 100% safe.
Who is Eligible to Open an MSSC Account?
The rules are very simple:
- Any woman can open an account for herself.
- A guardian (can be male or female) can open an account on behalf of a minor girl child.
Investment Rules: How Much Can You Deposit?
- Minimum Deposit: You can start with just ₹1,000.
- Maximum Deposit: The total investment limit is ₹2,00,000 per person.
- Multiple Accounts: You can open more than one account, but there must be a gap of at least 3 months between them. The total amount in all your MSSC accounts cannot exceed ₹2 lakh. For example, you can open one account with ₹50,000 and another after 3 months with ₹1,50,000.
How is Interest Calculated?
The interest calculation is what makes this scheme powerful. The interest is compounded quarterly. This means every three months, the interest you've earned is added to your principal amount. Then, for the next three months, you earn interest on this new, larger amount. However, the full amount (principal + all interest) is paid to you only at the end of the 2-year tenure.
Can You Withdraw Money Early? (Partial Withdrawal)
Yes! This is a unique and very helpful feature. After the completion of one year from the date of opening the account, you can withdraw up to 40% of the eligible balance. For example, if you invested ₹1,00,000, you can withdraw up to ₹40,000 after one year for any emergency or need.
Closing the Account Before 2 Years (Premature Closure)
You can close the account before the 2-year maturity period only in specific situations:
- No penalty: In case of the unfortunate death of the account holder, the full amount with interest is paid to the nominee.
- No penalty: On extreme compassionate grounds, like a life-threatening disease of the account holder or death of the guardian. Proper documents are required.
- With Penalty: You can choose to close the account for any reason after 6 months from the date of opening. In this case, the interest rate will be reduced by 2%. You will get interest at a rate of 5.5% instead of 7.5%.
Tax Rules: Is TDS Deducted from MSSC?
Understanding Tax on MSSC Interest
- No 80C Benefit: Investing in MSSC does NOT give you any tax deduction under Section 80C.
- Interest is Taxable: The interest you earn from this scheme is added to your total income and taxed as per your income tax slab.
- TDS Rules: Tax Deducted at Source (TDS) is NOT deducted from the interest earned in MSSC if the total interest earned in a financial year is up to ₹40,000. If your interest income from the Post Office/Bank exceeds this limit, TDS might be applicable as per Section 194A of the Income Tax Act.
- Forms 15G/15H: If your total income is below the taxable limit, you can submit Form 15G (for individuals below 60) or Form 15H (for senior citizens) to the post office or bank to request that no TDS be deducted.