Mahila Samman Yojana 2026

Table of Content

1. PM Mahila Samman Yojana 2026: Is the Scheme Still Open?

2. Key Features of Mahila Samman Saving Certificate

3. Eligibility Criteria for Mahila Samman Savings Certificate

4. Guidance for Existing Investors Under MSSC in 2026

5. Best Alternatives to Mahila Samman Yojana in 2026

6. Key Things to Know Before Your MSSC Matures

7. Tax Implications of Mahila Samman Savings Certificate

8. Conclusion

9. FAQs on Mahila Samman Yojana

The Mahila Samman Saving Certificate Scheme was a short-term savings scheme dedicated to girls and women. In 2023, the finance minister, Smt. Nirmala Sitharaman launched the MSSC scheme for two years (until 2025).

The primary objective of the scheme was financial inclusion and secure savings for women. The deposit range for the scheme was between ₹1,000 and ₹2 Lakh. Conservative savers who wanted to lock in fixed returns over specific yet flexible timeframes chose MSSC.

PM Mahila Samman Yojana 2026: Is the Scheme Still Open?

No, fresh deposits under the Mahila Samman Sanchay Yojana ended on 31st March 2025. Even in Budget 2026-27, there has not been any extension announced. Only existing account holders continue to receive benefits until maturity. However, the existing account holders continue to earn 7.5% interest until maturity.

So, women who have plans to invest in such a scheme will have to look for alternatives. You can consider long-term plans like ULIPs, retirement plans, or pension plans from HDFC Life to combine savings with protection and work towards future financial security.

There are more alternative schemes are Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), and Fixed Deposits (FDs).

Key Features of Mahila Samman Saving Certificate

The key features of Mahila Samman Sanchay Yojana include:

1. Interest Rate and Quarterly Compounding

With a fixed 7.5% annual interest rate, the invested amount of MSSC is compounded quarterly. Compared to simple interest, compounding improved the maturity value. For example, an investment of ₹2 lakh for the full two-year tenure could grow to approximately ₹2.32 lakh at maturity through the power of quarterly compounding.

2. Deposit Limits and Tenure

The minimum deposit amount for this scheme was ₹1,000, and the maximum amount was ₹2 Lakh. Moreover, the fixed two-year tenure helped investors to meet short-term savings goals seamlessly, such as creating emergency funds, arranging money for planned purchases and educational expenses.

3. Partial Withdrawal Rules

The Mahila Samman Sanchay Yojana allowed investors to partially withdraw up to 40% of their investments after one year of account creation. This specific feature proved that MSSC had limited liquidity. However, during emergencies, the scheme allowed the investors to partially withdraw and prematurely close their accounts.

4. Premature Closure Conditions

If an investor is interested in premature closure under the Mahila Samman Yojana, they can do so after completing 6 months from the date of account opening. In this voluntary withdrawal context, the investor will receive a 2% lower interest rate.

However, if there is a medical emergency or death, the investor can withdraw the amount immediately without any applicable penalty on the interest rate. It is highly recommended to understand these rules before investing.

Eligibility Criteria for Mahila Samman Savings Certificate

Although new investments under the Mahila Samman Yojana have ceased since 31st March, 2025, existing MSSC accounts remain active and continue to operate under the original terms until their maturity date. It provides an interest rate of 7.5% per annum until the completion of the two-year tenure. Due to the closure of the scheme, there have not been any changes in the interest.

Maturity payouts will include repayment of the principal amount along with the accrued interest. Not only that, existing account holders can still avail the scheme’s partial withdrawal facility and premature closure provisions. However, these are subject to the original terms and conditions. To avoid delays in settlement, investors need to verify their account details, nominee information, and withdrawal timelines.

It is advised to evaluate suitable reinvestment options after MSSC maturity to maintain continuity in savings and financial planning. After MSSC maturity, investors may also consider complementing their savings strategy with life insurance.

While MSSC helps preserve and grow savings over a fixed period, life insurance provides financial protection for dependents in the event of an unforeseen circumstance. Combining savings-oriented investments with adequate life cover can create a more balanced financial plan that addresses both wealth creation and family security.

For example, if you have a family, you can consider investing in life cover. It will help you to balance a short-term savings strategy along with long-term financial security.

Whereas an MSSC investment locks in your investment for two years in exchange for guaranteed returns, a dedicated life insurance policy financially protects dependents from life’s uncertainties, contributing to holistic financial planning.

For instance, individuals with dependents can consider allocating a portion of their funds towards life insurance to complement short-term savings with long-term financial protection. While an MSSC investment offers guaranteed returns over a two-year tenure, life insurance supports broader financial planning by safeguarding your family’s future against uncertainties, making the overall plan more comprehensive and resilient.

Guidance for Existing Investors Under MSSC in 2026

If you are an existing investor under PM Mahila Samman Yojana, here is how you can proceed forward:

1. Interest Earning Until Maturity

Since the scheme has a strict two-year tenure, you can earn 7.5% interest until its maturity. Interest under MSSC is compounded quarterly and paid along with the maturity amount. Existing account holders continue to earn the applicable interest rate until maturity.

2. Withdrawal Rules

According to a 2025 report published in the Economic Times, before the Electronic Clearance Service (ECS) was enabled, depositors could withdraw their invested amount in the form of cash, credits to a Post Office Savings Account (POSA) or via a Post Master Savings Account. Investors can withdraw their maturity amount directly via their non-post office bank accounts using the ECS.

Let us look at what the rules are for partial withdrawal and premature closing:

• Partial Withdrawal

In case of partial withdrawal, if the withdrawal is taking place after one year from the date of account opening, account holders can withdraw up to 40% of the total invested amount.

• Premature Closure

For the premature closure of the MSSC account, there are certain conditions. If the investor dies before maturity, premature closing is allowed. Furthermore, the MSSC account can be closed prematurely if the account holder suffers from a life-threatening illness or their guardian dies. In fact, in such cases, the principal will be paid along with the full interest amount.

However, if an account holder wants to close the account prematurely without any particular reason, they can do so after 6 months of opening the account. In that case, the interest will be 2% lower (5.5% instead of 7.5%). 

Best Alternatives to Mahila Samman Yojana in 2026

Since the Mahila Samman Yojana is no longer open for fresh deposits, investors may consider alternative government-backed savings schemes. Some options are suitable for short-term savings needs, while others support long-term wealth creation, tax benefits, and financial security. MSSC alternative women's empowerment savings plans that can add immense value to India’s GDP are:

1. ULIPs (Unit Linked Insurance Plans)

ULIP (Unit-linked insurance plans) are for those looking for life cover with an investment component. For example, HDFC Life Sampoorn Nivesh Plus offers a comprehensive solution that combines protection with market-linked investment opportunities, allowing you to choose from various fund options based on your risk appetite. The life cover safeguards your family financially in case of an eventuality, and the investment component helps generate a corpus for long-term financial goals like children’s education, retirement planning, etc.  A part of the premium paid towards the plan provides life cover, and the remaining is invested in market-linked assets like equity, debt funds, bonds, etc., depending on your risk profile and financial goals. 

2. Sukanya Samriddhi Yojana (SSY) for Long-Term Girl Child Savings

The Sukanya Samriddhi Yojana (SSY) is a dedicated savings scheme for women that contributes to wealth generation for girls’ education and marriage. Parents and guardians of girls aged 10 years can apply for this scheme with as little as ₹250. The maximum investment amount for this scheme is ₹1.5 Lakh, and it offers 8.2% interest per annum. 

Unlike the Mahila Samman Sanchay Yojana, the Sukanya Samriddhi Yojana is a long-term savings scheme. The tenure under this scheme is 21 years from the date of account opening. However, the depositor only has to make deposits towards the scheme for 15 years. 

Another significant reason to invest in this scheme is its tax benefits. Under section 123 of the Income Tax Act, 2025^# (corresponding to Section 80C of the Income Tax Act, 1961) the SSY scheme is eligible for up to ₹1.5 lakh in a tax year in tax deductions. 

3. National Savings Certificates for Fixed-Income Savings

The Indian National Savings Certificate is another relevant alternative savings scheme of MSSC. It is a government-backed, fixed-income savings bond offered by the Indian Post Office. 

With a minimum investment of ₹1,000, investors can earn 7.7% interest. Furthermore, the scheme has a five-year lock-in period, and investments in this scheme are eligible for tax deductions under Section 123 of the Income Tax Act^#, 2025 upto overall ceiling limit of ₹1.5 lakh in a tax year.

The guaranteed returns earned from this scheme ensure long-term financial security. In contrast to the MSSC, which is limited only to women and girls, the National Savings Certificates are open to all investors. Not only that, whereas MSSC has a maximum deposit limit of ₹2 Lakh, the NSC has no limits. 

4. Public Provident Fund (PPF) for Long-Term Wealth Building

When it comes to offering tax-free returns along with a sovereign guarantee, there is no better alternative than the Public Provident Fund. It allows women to build independent, long-term wealth with a minimum investment amount of ₹500. The maximum investment amount under this scheme is ₹1.5 Lakh in a single financial year. 

The interest rate under this scheme is 7.1%, and the lock-in period is for 15 years. This long-term savings scheme fosters long-term disciplined savings. Although PPF has low liquidity, the scheme enables depositors to avail loans against their balance between the 3rd and 6th financial years and penalty-free partial withdrawals from the 7th financial year.

5. Kisan Vikas Patra for Guaranteed Corpus Growth

If you are looking for a medium-term alternative for stable wealth accumulation, you can consider the Kisan Vikas Patra scheme. It is a government-backed savings certificate that ensures guaranteed capital growth. Offered by India Post, investing in this low-risk investment scheme enables investors to double their investments within a period of 115 months (9 years and 5 months), depending on the prevailing interest rate.

For conservative investors who prefer assured growth and eliminating market-linked risks, it is most suitable. You can start investing in this scheme with a minimum investment of ₹1,000. As of 2026, the interest rate of this scheme is 7.5% with no maximum investment limit. However, it is important to keep in mind that, unlike some other schemes, this one has no direct tax-saving benefit. 

6. Post Office Time Deposit for Short-Term Secure Savings

The Post Office Time Deposit (TD) is a safe savings scheme offered by the Government of India. It allows you to invest money for 1, 2, 3, or 5 years and earn a fixed rate of interest. The interest is calculated every quarter and paid annually. Currently, the 5-year TD offers an interest rate of up to 7.5% per year.

Since it is backed by the government, your invested money remains secure and is not affected by market ups and downs. The interest rate is fixed when you invest, so you know exactly how much you will earn by maturity. 

Unlike the Mahila Samman Savings Certificate, which has a fixed 2-year tenure, Post Office TD offers multiple tenure options to suit different financial goals. It is especially useful for investors looking for a safe and reliable 1-year investment option.

Key Things to Know Before Your MSSC Matures

As MSSC accounts approach maturity, investors need to review key details, including the maturity date, tax implications, maturity value, and withdrawal and closure conditions. It will not only ensure a smooth payout process but also help in avoiding missing key conditions.

Let us look into the details:

1. Check Your Exact Maturity Date

Since the Mahila Samman Sanchay Yojana has a fixed two-year tenure from the date of account opening, it is important to verify the exact maturity date to avoid confusion or delays in withdrawals. When you know the maturity timeline, you can prepare better for payout collection or reinvestment planning.

2. Understand Final Interest and Maturity Value

The final maturity amount under MSSC is calculated using the fixed interest rate and the quarterly compounding factor. Both the principal and accumulated interest are paid at maturity. Having an understanding of the expected maturity value assists in budgeting future expenses and making informed investment-related decisions.

3. Review Partial Withdrawal or Closure Conditions

Partial withdrawal made during the tenure may impact the final maturity. In that case, it will be lower than the originally projected value. Not only that, but the investor may face a penalty.

On the other hand, premature closure under certain circumstances, such as medical emergencies, allows immediate payout without penalty. Reviewing these conditions beforehand helps avoid misunderstandings when the account reaches maturity.

4. Know the Tax Treatment on Maturity Proceeds

The interest earned under MSSC is completely taxable according to the investor’s applicable income tax slab under the head “Income from Other Sources”. While TDS may apply as per prevailing tax regulations where the prescribed statutory conditions and threshold limits are satisfied, investors should verify the latest rules at the time of maturity. Understanding the post-tax maturity amount can help estimate actual returns and plan future investments more accurately.

5. Plan Your Next Investment After MSSC

Once MSSC matures, investors can explore other savings and investment options based on their financial goals. Factors such as investment horizon, risk appetite, liquidity needs, and expected returns should be considered before reinvesting. Maintaining a disciplined investment approach after maturity can contribute to long-term wealth creation and financial security.

Tax Implications of Mahila Samman Savings Certificate

The Mahila Samman Savings Certificate does not currently offer tax benefits under Section 123 of the Income Tax Act, 2025^# (corresponding to Section 80C of the Income Tax Act, 1961). While the invested amount is not eligible for deduction, the interest earned on the deposit is completely taxable and must be reported under “Income from Other Sources” in the investor’s income tax return.

Any TDS deduction, if applicable under prevailing tax rules, does not eliminate the need to disclose the interest income. Therefore, investors should consider the post-tax return while evaluating the overall benefits of the scheme.

For example, if an investor deposits ₹2 lakh and earns ₹33,000 as interest over the tenure, the interest amount will be taxed according to her applicable income tax slab, reducing the effective return received after tax.

Conclusion

The Mahila Samman Savings Certificate (MSSC) provided a simple and secure way for women to earn assured returns over a short investment period. While the scheme is no longer available for new investments, it remains relevant for existing account holders who have yet to receive maturity proceeds.

Such investors should keep track of important aspects such as partial withdrawal provisions, maturity timelines, and tax implications to make informed financial decisions.

For those looking to continue their savings journey, several government-backed options are available with varying tenures, returns, and liquidity features. Comparing these alternatives based on your financial goals, risk appetite, and cash-flow requirements can help you select a savings instrument that supports both current needs and long-term financial stability.

FAQs on Mahila Samman Yojana

1. Is the Mahila Samman Yojana extended in 2026?

No, during Budget 2026-27, there has not been any mention of the Mahila Samman Yojana extension. So, women who are looking for a similar investment scheme will have to find an alternative. However, the existing investors continue to earn 7.5% interest until the scheme matures.

2. What Should Existing MSSC Account Holders Do Now?

Existing MSSC account holders can track their scheme maturity, utilise the 40% early withdrawal option whenever necessary, enjoy 7.5% interest on the already invested amount, and look for a suitable alternative investment scheme.

3. What is the interest rate of the Mahila Samman Savings Certificate?

The MSSC offered a fixed interest rate of 7.5% per annum, compounded quarterly, payable with the maturity proceeds. Since the scheme has not been active since March 2025, you will not be able to open a new account.

4. Can I withdraw money before MSSC maturity?

Yes, you can withdraw money before MSSC maturity. However, it depends on whether you are looking for a partial withdrawal or full closure. You are eligible to withdraw a maximum of 40% of the total balance after one year from the date of account opening. For premature closure under non-medical or non-compassionate reasons, you will be liable to pay a 2% penalty.

5. What are the best alternatives to MSSC in 2026?

The best alternatives to MSSC in 2026 are the National Savings Certificate (NSC) and Post Office 2-Year Time Deposit (POTD). Whereas the NSC offers 7.7% interest with a 5-year maturity, the POTD offers 7% interest with a 2-year maturity.