Post Office schemes for women: From interest rate to investment limits, compare key aspects of Mahila Samman Savings Certificates, Sukanya Samriddhi Scheme here​​

Mahila Samman Savings Certificate and Sukanya Samriddhi Account are two special types of small savings schemes available at post offices in the country. While both are government-backed, fixed income investment plans, they have their own sets of features making them unique in many ways. While Mahila Samman Savings Certificate is a certificate of deposit (CoD) scheme aimed at women and minor girls, the Sukanya Samriddhi Account is specifically crafted for securing the future of girl children in the country. The Mahila Samman Savings Certificate supports women's financial independence with flexible savings options, whereas the Sukanya Savings scheme ensures long-term financial security for girl children. Read on to compare several key aspects of the two small savings schemes.  

Post Office Mahila Samman Savings Certificate 

Who can open an account?

• For women: Any adult woman can open an account for herself.
• For minor girls: A guardian can open an account on behalf of a minor girl.

# How to open an account

• Required documents: To open an MSSC account, you need to submit the Account Opening Form, KYC documents (Aadhaar and PAN card), KYC form for a new account holder, and a pay-in-slip along with the deposit amount or cheque at the nearest post office. 
• Forms availability: The necessary forms are available at post offices. 

# Investment limit

• Minimum: The account can be opened with a minimum deposit of Rs 1,000, and subsequent deposits must be in multiples of Rs 100.
• Maximum: The maximum limit for deposits is Rs 2,00,000 across all accounts held by an individual.
• Account opening gap: A minimum time gap of three months is required between opening multiple accounts.

# Interest rate

• Interest rate: The deposits yield interest at the rate of 7.5 per cent per annum.
• Compounding: Interest is compounded quarterly and credited to the account. It is paid out at the time of account closure.
• Non-compliance: Accounts or deposits made in contravention of the rules will earn interest at the prevailing Post Office Savings Account rate.

# Withdrawal 

• Partial withdrawal: After one year from the account opening date, a depositor can withdraw up to 40 per cent of the eligible balance.

# Premature closure of account

• The account can be closed prematurely in the event of the account holder's death.
• Pre-mature closure is allowed on extreme compassionate grounds such as life-threatening illness of the account holder or death of the guardian, with the necessary documentation.
• The account can be closed after six months of opening without providing a reason, but the interest rate will be 2 per cent less than the scheme rate (i.e., 5.5 per cent).

# Maturity and benefits

• The account matures after two years from the date of opening. Upon maturity, the eligible balance will be paid to the depositor.

Post Office Sukanya Samriddhi Account 

# Eligibility

• The account can be opened by a guardian in the name of a girl child below the age of 10 years. Only one account is allowed per girl child. A family can open a maximum of two accounts for two girl children, except in the case of twins or triplets where more than two accounts can be opened

# Investment limit

• While the minimum deposit in a financial year is Rs 250, the maximum deposit can be made up to Rs 1.50 lakh (in multiple of Rs 50) in lumpsum or in multiple instalments.
• Deposits can be made until the completion of 15 years from the date of account opening. If the minimum deposit of Rs 250 is not made in a financial year, the account will be considered defaulted but can be revived by paying the minimum deposit along with a penalty of Rs 50 per defaulted year.
• Tax benefits: Deposits qualify for deduction under Section 80C of the Income Tax Act, and the interest earned is tax-free.

# Operation of account

• The account is managed by the guardian until the girl child reaches the age of 18.

# Interest Rate and Investment Limits

• Interest rate: The scheme offers an interest rate of 8.2 per cent per annum, compounded yearly.
• Investment Limits: The account can be opened with a minimum deposit of Rs 250. You can deposit up to a maximum of Rs 1,50,000 per financial year, in multiples of Rs 50. There is no limit on the number of deposits in a month or a financial year.
• Interest calculation: Interest is calculated based on the prescribed rate notified by the Ministry of Finance on a quarterly basis. It is calculated for the calendar month on the lowest balance between the 5th day and the end of the month and credited annually.
• Interest earned is tax-free under the Income Tax Act.

# Withdrawal

• Once the girl child attains the age of 18 or completes the 10th standard, up to 50 per cent of the balance from the preceding financial year can be withdrawn. Withdrawals can be made in lump-sum or instalments (maximum once per year) over five years, depending on the actual requirement for educational or other expenses.

# Premature closure

• The account can be closed prematurely after five years under specific conditions, such as the death of the account holder, life-threatening illness of the account holder, or death of the guardian. Proper documentation and a prescribed application form are required.

# Closure on maturity

• The account matures 21 years from the date of opening or upon the marriage of the girl child after the age of 18 (not before one month or after three months from the date of marriage).