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The Mahila Samman Savings Scheme was introduced in Budget 2023, aiming to support young girls and women
The last date to apply for Mahila Samman Savings scheme is on March 31, 2025
Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2025 on Saturday, February 1. The expectations remain high for the potential changes, including reduction and extension in tax rates, relevant deadlines, exemption limits, government schemes, and more. One such discussion centres around the Mahila Samman Savings Scheme, which was announced in Budget 2023. A one-time savings scheme for women and girls—it currently offers higher interest rates than a 2-year interest rate given by banks on fixed deposits. However, with the last investment date for the Mahila Samman Savings Scheme nearing, it is yet to be seen if it will receive an extension from the Centre.
As of now, the last date to invest in the Mahila Samman Savings Scheme is March 31, 2025. The extension will come as a welcome move to empower the women and girls of India, strengthening their financial status.
Union Budget 2025 To Extend Mahila Samman Savings Scheme?
Rajani Thadane, senior vice president of Mutual Funds at 1 Finance explained that the saving scheme was introduced as a limited opportunity, playing an important role in promoting women’s financial inclusion and empowerment. With an attractive 7.5 interest rate and flexibility, it does not provide any tax benefits. “Given the government’s consistent focus on women-centric policies, the scheme might have an extension or a similar alternative can be introduced to sustain the impact,” he told Economics Times.
On the other hand, Wealth Trust Capital Services founder and CEO Sneha Jain stated that MSSC is not likely to get an extension as the focus has shifted majorly towards equity investments and mutual funds, which can result in a reduced response for the scheme.
Previously, a government official spoke to Moneycontrol and said that the scheme may be discontinued in the upcoming fiscal year, explaining that small savings schemes like MSSC, Senior Citizens’ Saving Scheme, and Sukanya Samriddhi Yojana have demonstrated a robust performance in the past. However, the government is targeting the reduced collection from the National Small Savings Fund (NSSF) which had a shortfall of Rs 20,000 crore in the financial year 2024.
With uncertainties regarding the extension of the scheme, those willing to invest can open their account till March 31, 2025. The minimum deposit limit is Rs 1,000 in multiples of 100, with a maximum of Rs 2,00,000 per account. The scheme guarantees an interest annual interest rate of 7.5 per cent, compounded quarterly whereas it matures two years from the date of the account opening. The account holders are allowed to access up to 40 per cent of the eligible balance after the first year.
