Mahila Samman Savings Certificate (MSSC): 7.5 percent for two years, and why the window is now shut (2026)

Many women who read about the Mahila Samman Savings Certificate today arrive with the same question. They saw an old advertisement or a relative mentioned a special 7.5 percent scheme for women, and they want to open one at the post office. The honest answer surprises them. The scheme was a fixed two year window that has already closed for new deposits. To save anyone a wasted trip to the counter, we have laid this page out as a plain interview. These are the questions women keep asking, with straight answers checked against the official rules.

No. This is the first thing to be clear about. The Mahila Samman Savings Certificate was announced in the Union Budget of 2023 as a one time small savings scheme with a hard closing date. Under the official notification, an account could be opened only up to 31 March 2025. From 1 April 2025 onward, post offices and the authorised banks stopped accepting fresh Mahila Samman deposits. If a counter or an agent tells you they can still open a new one, treat that as a warning sign and walk away.

The Union government led by Prime Minister Narendra Modi did not extend the scheme in the Budget of 2025. So there is no new enrolment on offer in 2026. What follows explains what the scheme was, what happens to money already in it, and where a woman looking for a similar safe return can turn instead. You can see it beside every other central scheme on the All Modi-era Sarkari Yojana index 2014 to 2026.

Your certificate is safe and it keeps working exactly as promised. The closing date only stopped new accounts. It did not touch accounts already opened. If you deposited before 31 March 2025, your money continues to earn the fixed 7.5 percent a year, compounded every quarter, right up to the two year maturity date printed on your certificate.

So a woman who opened an account in, say, February 2025 will see it mature in February 2027. On that date the post office pays back the full principal along with all the accumulated interest. Nothing about the closure reduces the rate or shortens the term for an existing holder. You do not need to do anything special. Keep the certificate or pass book safe and note the maturity month in your diary.

For the two years it was open, the Mahila Samman Savings Certificate was one of the plainest deals in the small savings basket. Here is what a holder gets.

• A fixed 7.5 percent a year. The rate was locked for the full term. It did not float with the quarterly small savings revisions, so a holder knows the exact return in advance.
• Interest compounded quarterly. The interest is calculated every three months and added to the balance, then paid out together with the principal when the account closes.
• A maximum deposit of Rs 2 lakh. A woman could put in up to Rs 2,00,000 across her Mahila Samman accounts. The minimum was Rs 1,000, in multiples of Rs 100.
• A 2 year term. Each certificate ran for exactly two years from the deposit date.
• One time deposit. You put the money in once at opening. You could not keep adding to the same account like a recurring deposit.

If a woman opened a second account, she had to wait at least three months after the first, and the combined deposit across all her accounts still could not cross Rs 2 lakh.

The eligibility was deliberately simple, which is part of why the scheme was popular while it lasted.

• Any Indian woman could open an account in her own name.
• A guardian could open an account on behalf of a girl who is a minor.
• There was no income test and no age bar. A student, a homemaker, a working woman, or a senior could each open one.
• The account had to be a single holder account. It was not a joint scheme.

If you fit this description and opened before the deadline, the account is valid and running. If you did not open in time, the eligibility no longer helps, because the window itself is shut.

Yes, within limits, and this is worth knowing if you hold a live certificate. The scheme built in two escape routes.

• Partial withdrawal after one year. Once the account completes one year, the holder can take out up to 40 percent of the balance one time. The rest stays invested and continues to earn interest until maturity. This helped women who needed some cash but did not want to break the whole certificate.
• Premature closure after six months. The account can be closed early, any time after six months from opening, even without giving a reason. The catch is the rate. On such a voluntary early closure, the interest drops to 2 percent below the scheme rate, which works out to 5.5 percent instead of 7.5 percent.

There is one softer route. If the account is closed early because the holder has died, or on documented extreme compassionate grounds such as a life threatening illness or the death of the guardian, the full 7.5 percent rate is paid without the 2 percent cut. Papers supporting the reason are needed in those cases.

The older draft of this page mentioned a 7.25 percent premature rate. That figure was wrong. The official rule is a flat 2 percent reduction, so the correct early closure rate is 5.5 percent. We have corrected it here.

This is a common myth, so read it carefully. The Mahila Samman Savings Certificate was not a tax free instrument. Some early write ups called it tax free, which was never accurate. The scheme did not qualify for a deduction under Section 80C, and the interest earned is taxable in the holder's hands like most small savings interest. There is no special exemption on Mahila Samman interest. If your total interest income is above the threshold, TDS rules apply in the normal way. When in doubt, check the current position with the income tax portal or a tax adviser before you file, because tax rules change from year to year.

This is the question that matters most in 2026, and there are solid options that are still open. None of them is identical to Mahila Samman, but each covers part of the same ground for a woman who wants a safe, government backed return.

• Sukanya Samriddhi Yojana is the natural successor for a girl child. It pays a higher rate than Mahila Samman did and comes with a Section 80C tax benefit, though the money is locked for a much longer term.
• PM Jan Dhan Yojana gives any woman a zero balance bank account with built in accident cover, which is the base every other saving sits on.
• Atal Pension Yojana turns small monthly contributions into a guaranteed pension from age 60, useful for a homemaker planning old age income.
• National Pension System suits a woman who wants a market linked retirement corpus with tax benefits and flexible contributions.
• PM Jeevan Jyoti Bima Yojana adds low cost life cover, and PM Suraksha Bima Yojana adds accident cover, both for a tiny yearly premium.
• PM Matru Vandana Yojana supports a pregnant woman with a direct cash benefit rather than a savings return.

A plain post office time deposit or a bank fixed deposit also fills the gap left by Mahila Samman, offering a fixed term at a rate set by your bank. For a girl child with a long horizon, Sukanya Samriddhi is usually the strongest replacement.

Consider a schoolteacher who set aside Rs 2 lakh in early 2025. Before the deadline, she walked into her post office, filled Form 1, gave her Aadhaar, and opened a Mahila Samman account at 7.5 percent. Two years later it matures and returns roughly Rs 2.32 lakh, a clean and predictable gain she can point to.

Now picture her younger sister who waited until mid 2026 to act. She goes to the same counter expecting the same scheme and learns the window has closed. Rather than lose momentum, she opens a Sukanya Samriddhi account for her daughter and starts an Atal Pension contribution for herself. The specific product changed, but the habit of parking money in a safe government scheme carried over. That is the practical takeaway for anyone who missed Mahila Samman.

If you hold a live certificate and the post office stalls your maturity payment, a partial withdrawal, or a premature closure request beyond the normal time, a written Right to Information request usually moves the file. Ask for the status of your account number, the officer handling it, and the reason for the delay. Draft it in minutes with the AI RTI Drafter and learn the full filing and appeal route in The RTI Playbook.

No. New deposits were allowed only up to 31 March 2025. From 1 April 2025 the scheme stopped accepting fresh accounts, and it was not extended in later budgets.

A fixed 7.5 percent a year, compounded quarterly. The interest was added to the balance each quarter and paid together with the principal at maturity.

Up to Rs 2 lakh in total across all your Mahila Samman accounts. The minimum was Rs 1,000, in multiples of Rs 100.

No. The closure only stopped new accounts. An account opened before the deadline keeps earning 7.5 percent for its full 2 year term.

Yes. After one year you may take out up to 40 percent of the balance one time. The rest stays invested until maturity.

A voluntary closure after six months pays 2 percent less, so 5.5 percent instead of 7.5 percent. Closure on death or documented compassionate grounds pays the full rate.

No. The interest is taxable and there was no Section 80C benefit. Calling it tax free was a common error. Check the current income tax rules before you file.

For a girl child, Sukanya Samriddhi is the closest replacement. For general saving, a post office time deposit or a bank fixed deposit fills the gap. Atal Pension and NPS help with retirement.

• Sukanya Samriddhi Yojana for a girl child
• PM Matru Vandana Yojana maternity benefit
• PM Jan Dhan Yojana zero balance account
• Atal Pension Yojana for old-age income
• National Pension System retirement corpus
• PM Jeevan Jyoti Bima Yojana life cover
• PM Suraksha Bima Yojana accident cover
• All Modi-era Sarkari Yojanas 2014 to 2026

• National Savings Institute, Ministry of Finance: nsiindia.gov.in
• India Post, Mahila Samman Savings Certificate: indiapost.gov.in
• Union Budget 2023 announcement, Ministry of Finance, Department of Economic Affairs
• Scheme window and closure confirmed for 1 April 2023 to 31 March 2025

Last reviewed: 1 July 2026.

By Dr. Shrawan Kumar Pathak.

Mahila Samman Savings Certificate — complete guide on interest, eligibility and how to open:

1. Step 1: What is the Mahila Samman Savings Certificate? (a) The Mahila Samman Savings Certificate — (MSSC) — is a small savings scheme — announced — in the Union Budget — 2023-24 — for women — and girls, (b) the key features: (i) the interest rate: 7.5% — per annum — compounded — quarterly, (ii) the deposit limit: minimum — Rs 1,000 — maximum — Rs 2,00,000 — for a 2-year — tenure, (iii) the deposit window: 1 April 2023 — to 31 March 2026, (iv) the account can be opened — at Post Offices — and designated — banks, © the eligibility: (i) any woman — or girl — can open — the account, (ii) a guardian — can open — the account — for a minor — girl.
2. Step 2: Savings scheme comparison table — women's schemes. (a) MSSC: (i) the interest: 7.5%, (ii) the tenure: 2 years, (iii) the limit: Rs 2,00,000, (iv) the tax: taxable, (b) Sukanya Samriddhi: (i) the interest: 8.2%, (ii) the tenure: 21 years — or marriage, (iii) the limit: Rs 1,50,000/year, (iv) the tax: EEE, © PPF: (i) the interest: 7.1%, (ii) the tenure: 15 years, (iii) the limit: Rs 1,50,000/year, (iv) the tax: EEE, (d) NSC: (i) the interest: 7.7%, (ii) the tenure: 5 years, (iii) the limit: no limit, (iv) the tax: deductible — 80C, (e) Fixed Deposit: (i) the interest: 6-7%, (ii) the tenure: 1-10 years, (iii) the limit: no limit, (iv) the tax: taxable.
3. Step 3: How to open an MSSC account. (a) Step 1: Visit — the nearest — Post Office — or designated — bank, (b) Step 2: Fill — the MSSC — account — opening — form, © Step 3: Submit — the documents: (i) Aadhaar — card, (ii) PAN — card, (iii) photograph, (iv) for a minor — the guardian — Aadhaar — and the birth — certificate, (d) Step 4: Deposit — the amount — by cash — cheque — or DD, (e) Step 5: Obtain — the MSSC — certificate.
4. Step 4: How does the interest and withdrawal work? (a) the interest: (i) 7.5% — per annum — compounded — quarterly, (ii) the interest — is credited — to the account — quarterly, (b) the withdrawal: (i) the account — can be closed — after 2 years, (ii) up to 40% — of the deposit — can be withdrawn — after 1 year — for specified — purposes, (iii) the account — can be closed — prematurely — in case — of the death — of the account — holder.
5. Step 5: How to file RTI for MSSC. (a) the Ministry of Finance — and the India Post — are public authorities — under the RTI Act, (b) the RTI application — can ask: (i) “Provide the account — status — for the MSSC — account — [number] — including: (a) the deposit — amount, (b) the interest — credited, © the maturity — amount, (d) the maturity — date”, (ii) “Provide the statistics — of the MSSC — accounts — for [period] — including: (a) the total — accounts, (b) the total — deposit, © the interest — paid, (d) the accounts — closed”, © the application fee — is Rs 10.
6. Step 6: Practical tips. (a) open — the MSSC — account — before 31 March 2026, (b) deposit — the maximum — Rs 2,00,000 — for the best — returns, © check — the interest — credit — quarterly, (d) file RTI — with the India Post — for the account — status — and the statistics, (e) Example: A woman — opened — the MSSC — account — with Rs 2,00,000 — and after 2 years — received — Rs 2,32,044 — including — the interest — at 7.5% — compounded — quarterly.

See Mahila Samman and PM Suryaghar.