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Senior Citizens Savings Scheme (SCSS)

Quarterly income at 8.2% for those 60 and above — capital fully secure.

8.2% p.a. (paid quarterly)Interest taxable; 80C on deposit

What is SCSS?

SCSS is a government scheme built for retirees who want a safe, regular income. You invest a lump sum (up to ₹30 lakh), and it pays 8.2% interest every quarter into your account — one of the best guaranteed rates available to senior citizens. The capital is sovereign-backed and returned at the end of the 5-year term (extendable by 3 years).

Interest rate
8.2% p.a., paid every quarter
Eligibility
60+ (55–60 on VRS/superannuation; 50+ defence)
Tenure
5 years, extendable by 3 years
Maximum
₹30 lakh
Tax
Deposit qualifies 80C; interest taxable, TDS above ₹50k

Calculate

₹
₹1,000₹30,00,000

Max ₹30 lakh

% p.a.
1 % p.a.15 % p.a.

Government-set rate · Q2 FY2026-27 (Jul–Sep 2026). Reviewed each quarter.

Quarterly income
₹30,750
every quarter — principal returned at maturity
Total interest
₹6.15 L
Principal back
₹15.00 L

Indicative only. Uses a level rate you can see above; a bank/post office may differ by a few rupees due to day-count, minimum-balance and compounding conventions. Rate as of Q2 FY2026-27 (Jul–Sep 2026), reviewed quarterly.

Rate verified (Q2 FY2026-27 (Jul–Sep 2026)) from Finance Ministry / National Savings Institute — small-savings rates, Jul–Sep 2026

SCSS — The Complete Guide

16 questions answered — everything from eligibility and HUF/NRI rules to tax, withdrawals and edge cases.

The basics

What is the Senior Citizens Savings Scheme?
SCSS is a government scheme that gives retirees a safe, regular income. You invest a lump sum (up to ₹30 lakh), and it pays a fixed rate — currently 8.2% — as quarterly interest, with your capital returned at the end of the 5-year term. It's among the best guaranteed-income options for senior citizens.
How long does it run?
The base tenure is 5 years, and it can be extended once by a further 3 years (total 8). You can also close it prematurely, subject to a small penalty (see below).

Interest & income

What is the current rate, and how is interest paid?
SCSS pays 8.2% per annum for Jul–Sep 2026, credited QUARTERLY — on the first working day of April, July, October and January — straight to your linked account. It's income you can actually spend, not just an accrual.
How much income will ₹30 lakh generate?
At 8.2%, a ₹30 lakh deposit yields about ₹2.46 lakh a year — roughly ₹61,500 every quarter (about ₹20,500 a month equivalent). A couple investing ₹30 lakh each could draw close to ₹4.9 lakh a year between them.
Is 8.2% fixed for my whole term?
The rate that applies when you OPEN (or extend) the account is fixed for that 5-year block — unlike PPF/SSA where the rate floats every quarter. New accounts get whatever rate is in force that quarter.

Who is eligible

Who can open an SCSS account?
Any resident individual aged 60 or above. The account can be held singly or jointly with a spouse (the first holder must meet the age criterion).
Can I join before 60 if I've retired?
Yes. Those aged 55–60 who retired under superannuation or a voluntary retirement scheme can open an account within one month of receiving their retirement benefits. Defence services retirees can join from age 50, subject to conditions.
Can NRIs or HUFs open an SCSS account?
No. SCSS is only for resident individuals. NRIs and HUFs are not eligible. If an account holder becomes an NRI during the term, the account is closed.

Deposit limits

How much can I invest?
The maximum is ₹30 lakh per individual (raised from ₹15 lakh in 2023), across all your SCSS accounts combined. The minimum is ₹1,000. Deposits above ₹1 lakh must be by cheque/transfer.
Can a couple invest more?
Yes — since the ₹30 lakh limit is per individual, a husband and wife can each open their own account and invest up to ₹60 lakh combined, doubling the guaranteed quarterly income.

Tax & TDS

What are the tax rules?
The deposit qualifies for a Section 80C deduction (up to ₹1.5 lakh, old regime). The quarterly interest, however, is fully taxable at your slab and added to your income.
When is TDS deducted, and how do I avoid it?
TDS applies if your SCSS interest exceeds ₹50,000 in a financial year (this senior-citizen threshold covers most deposit sizes). If your total income is below the taxable limit, submit Form 15H at the start of the year so no TDS is deducted.

Exit & extension

Can I close the account early, and what does it cost?
Yes. Closing after 1 year but before 2 years costs 1.5% of the deposit; closing after 2 years costs 1%. If you close within the first year, any interest already paid is recovered. There's no penalty for closure due to the holder's death.
How does the 3-year extension work?
Within one year of the 5-year maturity, you can extend the account once for a further 3 years. The extended account earns the SCSS rate prevailing at the date of maturity, and can be closed after one year of extension without any penalty.

Good to know

What happens on the account holder's death?
The account is closed and the balance with interest is paid to the nominee or legal heir. If the spouse is the joint holder and is eligible, they may continue the account. Always register a nominee at opening.
SCSS vs an annuity or bank FD — why choose SCSS?
SCSS usually beats bank FDs and immediate annuities on rate for senior citizens, is government-guaranteed, and returns your capital in full at the end (an annuity typically doesn't). Its limits are the ₹30 lakh cap and the taxable interest — so many retirees use SCSS first, then FDs/annuities for amounts above the cap.

Related tools & guides

Senior income calculator Retirement calculator Annuity calculator

Educational information only, not investment advice. Interest rates for government small-savings schemes are set by the Government of India and reviewed every quarter; bank FD/RD rates vary by bank and tenure. Figures are indicative — confirm the current rate and rules with the bank/post office before investing. Calculator results are for illustration purposes only. Actual returns may vary based on market conditions, fund performance, and other factors.

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