The Senior Citizen Savings Scheme (SCSS) gives retirees a safe, regular income. It is backed by the Government of India, pays one of the highest rates among small savings schemes, and sends interest to your bank account every quarter.
Key SCSS rules
- Who can open: people aged 60 or above. Those aged 55 to 60 who retired on superannuation or voluntary retirement can open it within one month of receiving their retirement benefits, and retired defence personnel from age 50.
- Deposit: minimum ₹1,000, maximum ₹30 lakh in total across all SCSS accounts.
- Interest: 8.2% a year for July–September 2026, paid every quarter. The rate is fixed for the full term.
- Tenure: 5 years, which can be extended in blocks of 3 years.
- Tax: the deposit qualifies for the old-regime deduction (Section 80C). Interest is taxable, and TDS applies if interest crosses ₹1 lakh in a year.
How to use the SCSS calculator
- Enter the deposit amount (up to ₹30 lakh).
- Check the interest rate.
SCSS formula
Yearly interest = Deposit × Rate ÷ 100
Quarterly interest = Yearly interest ÷ 4Example
A retiree deposits ₹15,00,000 at 8.2%.
- Interest every quarter = ₹30,750
- Interest every year = ₹1,23,000
- Total interest in 5 years = ₹6,15,000
- The ₹15,00,000 deposit is returned after 5 years.
Income for different deposits
| Deposit | Every quarter | Every year |
|---|---|---|
| ₹10,00,000 | ₹20,500 | ₹82,000 |
| ₹15,00,000 | ₹30,750 | ₹1,23,000 |
| ₹30,00,000 | ₹61,500 | ₹2,46,000 |
Things to know
- Interest is paid, not compounded. The quarterly interest goes to your savings account. If you don't need it, reinvest it in an RD or FD.
- Early closure has a penalty: 1.5% of the deposit if closed between one and two years, and 1% after two years.
- Stop TDS with Form 121 if your total tax payable is nil. See the TDS calculator.
FAQ
What is the SCSS interest rate now?
8.2% a year for the July–September 2026 quarter. The rate on the day you open the account stays fixed for 5 years.
What is the maximum investment in SCSS?
₹30 lakh per person across all SCSS accounts. A couple can each open their own account.
How often is SCSS interest paid?
Every quarter, on the first working day of April, July, October and January.
SCSS or post office MIS: which is better?
SCSS pays a higher rate and allows a larger deposit, but only retirees can open it. The post office MIS calculator shows the monthly option open to everyone.