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Investing

Mahila Samman Savings Certificate: Rules, Status and Withdrawal

MSSC stopped taking new deposits after 31 March 2025. Existing accounts earn 7.5% and mature within two years, the last by 31 March 2027.

PN

Written by Priya Nair

Published 20 October 2026·6 min read

On this page8 sections
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The Mahila Samman Savings Certificate (MSSC) is closed to new deposits. The scheme accepted accounts only until 31 March 2025, and India Post had announced no extension as of 17 September 2026. Existing accounts keep earning 7.5% a year and mature two years after the deposit date, so the last ones pay out by 31 March 2027.

Key facts

Item Rule
Scheme Mahila Samman Savings Certificate, 2023 (G.S.R. 237(E), 31 March 2023)
Status No new deposits after 31 March 2025
Who could open A woman for herself, or a guardian for a minor girl; single-holder accounts only
Deposit One deposit per account, ₹1,000 to ₹2,00,000 across all accounts
Interest 7.5% a year, compounded quarterly
Tenure 2 years from the date of deposit
Partial withdrawal Once, up to 40% of the eligible balance, after 1 year
Premature closure After 6 months at 5.5%; at 7.5% on death or compassionate grounds

Is MSSC still open in 2026?

No. The scheme text itself set the cut-off: paragraph 3 says an application must be made on or before 31 March 2025. On 27 March 2025 the Department of Economic Affairs confirmed that the scheme would stay effective only until that date, and the Department of Posts told all post offices in SB Order 03/2025 of 28 March 2025 that no new deposits would be accepted after it.

India Post’s saving schemes page, last updated on 12 August 2026, still describes MSSC but notes that it was available till 31 March 2025. Some banks and websites still show MSSC pages, and the India Post rate table still lists 7.5% for existing accounts. Neither means fresh deposits are open. If you see a claim that MSSC has been relaunched, check the India Post page or the Finance Ministry’s small savings notices before acting.

What existing account holders can do

An MSSC account matures two years from its deposit date. Accounts opened on the last day, 31 March 2025, mature on 31 March 2027, so every remaining account is now past its first year. That gives you four options.

1. Wait for maturity

At maturity, apply in Form-2 at the post office or bank that holds the account to receive the eligible balance. India Post puts the maturity value at ₹11,602 for every ₹10,000 deposited. On the full ₹2,00,000 limit, that works out to about ₹2,32,044, by our calculation.

2. Withdraw up to 40% once

After one year and before maturity, you can withdraw up to 40% of the eligible balance, once, using Form-3. On a ₹2,00,000 deposit, the balance after exactly one year is about ₹2,15,427, so the most you could take is about ₹86,171 (our calculation). The rest keeps earning 7.5% until maturity. For an account in a minor girl’s name, the guardian must attach a certificate that the money is for the girl’s use and welfare.

3. Close early for any reason

After six months you can close the account for any reason using Form-4. The whole balance then earns 5.5%, which is 2 percentage points less than the scheme rate, for the time it was held. On ₹2,00,000 closed after one year, that means about ₹11,229 in interest instead of about ₹15,427.

4. Close early without a rate cut

The full 7.5% is paid on premature closure in two cases:

  • the death of the account holder; or
  • extreme compassionate grounds, such as medical support for a life-threatening disease of the account holder or the death of the guardian. The post office or bank must be satisfied after full documentation and record its reasons in writing.

How to claim your MSSC money

  1. Find your account details: the certificate or passbook, and the post office or bank branch where you opened it.
  2. Pick the right form: Form-2 for maturity, Form-3 for the 40% withdrawal, Form-4 for early closure.
  3. Fill in the form. For a minor girl’s account, the guardian signs and adds the welfare certificate for a withdrawal.
  4. Submit it with your identity proof at the same office. For closure on compassionate grounds, attach medical or death records.
  5. Collect the payment. Fractions of a rupee are rounded to the nearest rupee.

Accounts opened at a bank are paid by that bank. Bank of Baroda, for example, carries the same closure notice on its MSSC page.

Tax and TDS on MSSC interest

MSSC interest has no tax exemption. It is added to your income and taxed at your slab rate for the year.

In May 2023 the CBDT notified MSSC for the post office TDS threshold under Section 194A of the Income-tax Act, 1961, so tax was deducted only above the threshold then in force. From tax year 2026-27, TDS falls under Section 393 of the Income-tax Act, 2025. Its threshold for interest from a bank, co-operative bank or post office is ₹50,000 a year, or ₹1,00,000 for senior citizens. The payer counts all your interest from it in the year, not just MSSC.

If your total income is below the taxable limit, you can give the payer a declaration so that no TDS is deducted. For tax year 2026-27 onwards, that declaration is Form 121, which replaced Forms 15G and 15H. Interest you earned in FY 2025-26 is reported in the return you file for that year under the Income-tax Act, 1961.

Where MSSC money can go after maturity

No women-only small savings scheme was open to new deposits when this page was checked. The post office schemes still accepting money include the post office time deposit, the recurring deposit and the Monthly Income Scheme. For a daughter under 10, the Sukanya Samriddhi Account pays 8.2% for July to September 2026. Our post office savings schemes page compares all of them, and rates for October to December 2026 are due around the end of September.

Frequently asked questions

Can I open a Mahila Samman Savings Certificate in 2026?

No. New deposits stopped after 31 March 2025, and no extension had been announced as of 17 September 2026.

What is the Mahila Samman interest rate?

7.5% a year, compounded quarterly, fixed for the two-year term. India Post puts the maturity value at ₹11,602 for ₹10,000.

When will my MSSC account mature?

Two years from the date of deposit. The latest possible maturity date is 31 March 2027.

How much can I withdraw from MSSC before maturity?

Up to 40% of the eligible balance, once, after the account completes one year. Apply in Form-3.

What is the penalty for closing MSSC early?

If you close after six months for a personal reason, interest drops to 5.5%. There is no cut on the death of the holder or on accepted compassionate grounds.

Is MSSC interest tax-free?

No. It is taxed at your slab rate. TDS applies only if your total interest from that payer crosses the threshold, ₹50,000 a year for tax year 2026-27 (₹1,00,000 for senior citizens).

Can MSSC be extended after maturity?

The scheme has no extension clause. On maturity the balance is paid out on an application in Form-2.

Sources

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