EXPLAINED: How to calculate Mahila Samman Savings Certificate scheme return

Bank of Baroda has become the latest public sector lender to launch the Mahila Samman Savings Certificate Scheme, which is an initiative of the Central government to financially support women. The Mahila Samman Savings Certificate (MSSC) Scheme was proposed during the presentation of the Union Budget of 2023-24. Finance Minister Nirmala Sitaraman announced this 2-year deposit scheme with the vision of empowering women and girls financially.

In a release on Thursday, Bank of Baroda declared the introduction of this scheme where it will allow all eligible women to avail the benefits irrespective of whether they are a customer of the bank or not. The scheme will be valid till March 31, 2025.

Bank of Baroda joins club of lenders offering Mahila Samman Savings Certificate

Bank of Baroda is the third bank after Canara Bank and Bank of India to offer the MSSC scheme. All the interested women investors can open an account under this scheme at any branch of Bank of Baroda. The scheme was launched by Bank of Baroda in New Delhi on Thursday, July 13

What is Mahila Samman Savings Scheme?

Mahila Samman Savings Scheme is a government supported savings scheme introduced exclusively for women. This is a one-time savings scheme where Mahila Samman Savings Certificate will be made available for two-year duration. One can open multiple accounts, but that requires a minimum gap of three months between the existing account and the new one.

The scheme offers a one-time opportunity for women to undertake this secured investment with promising returns. It aims to support women as the savings will benefit them financially.

Mahila Samman Savings Scheme eligibility

The Mahila Samman Savings Scheme is exclusively available for women. It allows every woman and girl to invest in the scheme. While any girl or woman above 18 years of age can invest themselves, in case of minors, a guardian (male or female) can open the account on behalf of the girl.

Mahila Samman Savings Scheme interest rate and investment limit

The Mahila Samman Savings Scheme offers a fixed interest rate of 7.5 per cent annually for two years. The interest is compounded quarterly and then credited to the account.

One can invest at a minimum of Rs 1,000 under this scheme or a cumulative deposit can be done up to Rs 2 lakh in multiples of Rs 100.

Mahila Samman Savings Certificate Scheme: Maturity period and withdrawal

The Mahila Samman Savings Certificate Scheme is a fixed investment scheme for two-year period. However, it also provides the women investors with partial withdrawal as an emergency assistance. A partial withdrawal of upto 40 per cent of the total deposit amount is allowed after one year from the date of the opening of the account.  

Premature closure MSSC account is allowed in case of the death of the account holder or on extreme compassionate ground. An investor can also opt for premature closure of the account if she is suffering from a life threatening disease. In such cases, interest will be paid on the principal amount. However, the interest rate will be reduced to 5.5 per cent.  

Where to open account?

Authorised post offices and banks offer women investors to open an account under the Mahila Samman Savings Certificate Scheme.  

Mahila Samman Savings Certificate Scheme interest calculation

To calculate the interest earned, the simple interest formula is applied, which is multiplied to the principal amount and the interest rate and also the duration for which the investment.

This savings scheme offers an annual fixed interest rate of 7.5 per cent compounded quarterly.

For example, if someone has invested Rs 2 lakh, she will receive interest of Rs 3,750 after the first quarter. With the compounding interest the maturity amount will be Rs 2,32,044 after 2 years.