Mahila Samman Savings Certificate
A special 2-year savings certificate for women — no longer open to new investors, but existing certificates keep earning until maturity.
Rate effective: July–September 2026 (Q2 FY 2026-27) · Last verified: July 2026 · Source: India Post
Reviewed by Tushar Paturde, CFP® — AMFI-registered Mutual Fund Distributor (ARN-129322)
What is Mahila Samman Savings Certificate?
Fresh deposits into the Mahila Samman Savings Certificate (MSSC) closed on 31 March 2025 (Department of Posts SB Order No. 03/2025), and there has been no extension since — including in the most recent Union Budget. This page exists for two audiences: people who already hold an MSSC certificate and want to understand what happens next, and people researching it who should know it's not currently something they can invest in.
While it was open (April 2023 to March 2025), MSSC offered a competitive rate with quarterly compounding on a short 2-year tenure, aimed at women who wanted better returns than a savings account without locking money away for years. Any woman could open an account, or a guardian on behalf of a minor girl child.
Who Should Invest?
- Not applicable for new investment — the scheme is closed to fresh deposits
- Relevant mainly to existing MSSC holders tracking their certificate to maturity
- Women looking for a comparable short-term option today should compare the 1 or 2-year Post Office Time Deposit instead
Key Features
- Closed to new deposits since 1 April 2025 — existing certificates continue unaffected
- Was open to all women (and guardians on behalf of minor girls) while active
- 2-year tenure, interest compounded quarterly
- Maximum was ₹2 lakhs per account
- Partial withdrawal (up to 40%) allowed after 1 year
- No TDS in practice — the ₹2 lakh cap keeps annual interest below the TDS threshold
Eligibility — Who Can Open MSSC?
- Fresh deposits are no longer accepted — the scheme's window closed on 31 March 2025 and has not been reopened or extended since
- While it was open, any resident Indian woman — of any age — or a guardian on behalf of a minor girl, could open an account
- Existing MSSC accounts opened before the deadline continue to run and earn interest until their original 2-year maturity
How to Invest in MSSC
- New investment is not currently possible — the Department of Posts stopped accepting fresh MSSC deposits from 1 April 2025 (SB Order No. 03/2025)
- If you already hold an MSSC certificate, no action is needed — it continues earning interest automatically until maturity
- For a comparable short-term, government-backed option today, consider a 1 or 2-year Post Office Time Deposit instead
Premature Withdrawal and Loan Against MSSC
For accounts still running, a one-time partial withdrawal of up to 40% of the eligible balance is allowed after completing 1 year from the date of opening. Full premature closure is permitted after 6 months only in specific circumstances — the account holder's death, extreme compassionate grounds such as a life-threatening illness, or a court order. Outside of these situations, MSSC doesn't allow early closure, since its own tenure is already short at 2 years.
There is no loan facility against MSSC — it wasn't designed to be pledged as collateral.
Taxation and ITR Reporting
MSSC gets no Section 80C or other tax deduction. Interest is fully taxable under "Income from Other Sources" at your slab rate. TDS at 10% technically applies if your annual MSSC interest exceeds ₹40,000 (₹50,000 for senior citizen women) with PAN on record, but in practice this rarely triggers on a single account — the ₹2 lakh investment cap keeps the maximum possible annual interest well below that threshold.
Watch Out For
- The scheme cannot be reopened for new investment — don't visit a post office expecting to open one
- No Section 80C tax benefit, even for certificates already held
- Interest is taxable — add it to income when filing ITR
MSSC Example
An existing ₹2,00,000 MSSC certificate (the maximum allowed while the scheme accepted deposits) at 7.5% p.a., compounded quarterly, matures to roughly ₹2,32,000 over its 2-year term — the ₹32,000 interest is fully taxable at your slab rate.
How MSSC Compares
A side-by-side look at MSSC against PPF, NSC, and the 5-year Post Office Time Deposit — all figures are the currently published, verified rates.
| Scheme | Rate (% p.a.) | Compounding | Tenure | Min Investment | Max Investment | 80C | TDS |
|---|---|---|---|---|---|---|---|
| MSSC | 7.5% | Quarterly | 2 years | ₹1,000 | ₹2 lakhs | – | – |
| PPF | 7.1% | Annual | 15 years | ₹500/year | ₹1.5 lakhs/year | ✓ | – |
| NSC | 7.7% | Annual | 5 years | ₹1,000 | No limit | ✓ | – |
| POTD 5Y | 7.5% | Quarterly | 5 years | ₹1,000 | No limit | ✓ | Yes |
Compare All NSS Schemes
See how MSSC compares to all other National Savings Schemes in one table.
← View All NSS Interest RatesAll NSS Schemes
Frequently Asked Questions
Can I still open a new MSSC account?
No. The Department of Posts stopped accepting fresh MSSC deposits from 1 April 2025 (SB Order No. 03/2025), and no extension has been announced since, including in the latest Union Budget. Only accounts opened before the deadline continue.
What happens to my existing MSSC account?
It continues to run and earn interest exactly as before, until its original 2-year maturity date — you don't need to do anything.
What was the MSSC interest rate?
7.5% p.a., compounded quarterly, for certificates opened before the scheme's 31 March 2025 deadline.
Can I withdraw from my MSSC account early?
A one-time partial withdrawal of up to 40% is allowed after 1 year. Full premature closure is otherwise restricted to specific cases like the holder's death or a life-threatening illness, after a minimum 6-month hold.
What should I invest in now instead of MSSC?
For a similar short 1–2 year, government-backed option, compare the Post Office 1-year or 2-year Time Deposit, or the Post Office Savings Account for full liquidity.
Is MSSC interest taxable?
Yes, fully taxable under 'Income from Other Sources' at your slab rate. TDS technically applies above ₹40,000 (₹50,000 for senior citizens) of annual interest, but the ₹2 lakh cap means most accounts never cross that threshold.
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