Senior Citizen Savings (SCSS)
Estimate quarterly interest earnings for Senior Citizen Savings Scheme.
The Senior Citizen Savings Scheme (SCSS) is the highest-paying government-guaranteed fixed-income option available to retirees in India. It pays 8.2% per annum, credited every quarter, which makes it the standard choice for anyone who wants predictable retirement income without market risk. Use the calculator above to see exactly what your deposit will pay you each quarter and what you will have earned by the end of the 5-year term.
SCSS at a glance (2026)
- Interest rate: 8.2% p.a., paid quarterly (reviewed by the Government each quarter)
- Maximum deposit: ₹30 lakh per individual (raised from ₹15 lakh in Budget 2023)
- Minimum deposit: ₹1,000, in multiples of ₹1,000
- Tenure: 5 years, extendable by a further 3 years
- Tax benefit: Deposit qualifies for deduction under Section 80C (old regime)
- Safety: Sovereign guarantee — backed by the Government of India
How SCSS interest is calculated
SCSS pays simple interest on your deposit — it is an income scheme, not a compounding one. The interest is not added back to your principal; it is paid out to your bank account every quarter. The formula is straightforward:
Total interest over 5 years = Quarterly interest × 20
Maturity amount = Original deposit (returned in full)
This is the key difference between SCSS and a cumulative FD: your principal comes back unchanged at maturity, and the return arrives as regular income along the way. That is exactly what most retirees need — a predictable quarterly cheque to cover household expenses.
Worked examples at 8.2%
| Deposit | Quarterly income | Annual income | Total interest (5 yrs) |
|---|---|---|---|
| ₹5,00,000 | ₹10,250 | ₹41,000 | ₹2,05,000 |
| ₹10,00,000 | ₹20,500 | ₹82,000 | ₹4,10,000 |
| ₹15,00,000 | ₹30,750 | ₹1,23,000 | ₹6,15,000 |
| ₹30,00,000 (max) | ₹61,500 | ₹2,46,000 | ₹12,30,000 |
A couple can open separate accounts and deposit ₹30 lakh each — ₹60 lakh in total, generating roughly ₹4.92 lakh a year of guaranteed income between them.
Who is eligible to open an SCSS account
- Anyone aged 60 or above — the standard route.
- Age 55–60 — if you retired under a voluntary or superannuation scheme, provided the account is opened within one month of receiving your retirement benefits.
- Age 50–60 — retired defence personnel, subject to the same one-month condition.
- Spouse — a joint account is allowed only with your spouse, and the entire deposit is attributed to the first holder.
- Not eligible: NRIs, HUFs and persons of Indian origin residing abroad.
Premature withdrawal rules
SCSS allows you to close the account early, but the penalty depends on when you exit:
- Before 1 year: no interest is payable; any interest already credited is recovered from your principal.
- Between 1 and 2 years: 1.5% of the deposit is deducted.
- After 2 years: 1% of the deposit is deducted.
- Extended accounts: after a 3-year extension, the account can be closed after one year with no penalty.
Tax treatment — what most people get wrong
The deposit qualifies for a Section 80C deduction of up to ₹1.5 lakh, but only if you are filing under the old tax regime. Under the new regime, that deduction is not available.
The interest is fully taxable as income from other sources at your slab rate. TDS applies if your SCSS interest crosses ₹50,000 in a financial year (₹1 lakh for senior citizens as per the revised threshold) — but if your total income is below the taxable limit, you can file Form 15H at the start of the year to avoid TDS entirely. Separately, Section 80TTB lets senior citizens deduct up to ₹50,000 of interest income, which offsets much of the SCSS interest for smaller deposits.
SCSS vs the alternatives
| Scheme | Rate | Best for |
|---|---|---|
| SCSS | 8.2% | Highest guaranteed quarterly income; ₹30 lakh cap |
| Post Office MIS | 7.4% | Monthly (not quarterly) payout; lower limit |
| Senior citizen FD | 7–7.75% | Flexible tenures, no age-60 waiting |
| PPF | 7.1% | Tax-free growth, but 15-year lock-in and no income |
For most retirees the practical answer is a combination: SCSS for the bulk of the safe allocation because it pays the most, POMIS if you specifically need monthly rather than quarterly cash flow, and a small equity or hybrid allocation to keep pace with inflation over a 20-year retirement.
Frequently Asked Questions
What is the SCSS interest rate in 2026?
The Senior Citizen Savings Scheme pays 8.2% per annum, credited quarterly. The Government reviews small-savings rates every quarter, and the rate applicable when you open the account stays fixed for your full 5-year term.
Who is eligible for SCSS?
Any resident individual aged 60 or above. Those aged 55–60 who took voluntary retirement or superannuation, and defence retirees aged 50–60, can also open an account provided they do so within one month of receiving their retirement benefits. NRIs and HUFs are not eligible.
What is the maximum deposit in SCSS?
₹30 lakh per individual, raised from ₹15 lakh in Budget 2023. A married couple can therefore hold up to ₹60 lakh across two separate accounts.
How much will I get quarterly on a ₹10 lakh SCSS deposit?
At 8.2% p.a., a ₹10 lakh deposit pays ₹20,500 every quarter — ₹82,000 a year, and ₹4.1 lakh of total interest over the 5-year term. Your ₹10 lakh principal is returned in full at maturity.
Is SCSS interest taxable?
Yes. The interest is fully taxable at your income-tax slab rate as income from other sources. TDS applies once interest crosses the prescribed threshold, but you can file Form 15H if your total income is below the taxable limit. Section 80TTB also allows senior citizens to deduct up to ₹50,000 of interest income.
Can I withdraw from SCSS before 5 years?
Yes, with a penalty. Closing before 1 year means no interest is payable; between 1 and 2 years, 1.5% of the deposit is deducted; after 2 years, 1%. There is no penalty if you close an extended account after one year of the extension.
Can SCSS be extended after 5 years?
Yes. You can extend the account by 3 years by applying within one year of maturity. The extended account earns the rate applicable on the maturity date, and can be closed after one year of extension without any penalty.
Is SCSS better than a senior citizen FD?
On rate, yes — SCSS at 8.2% currently beats most senior-citizen fixed deposits at 7–7.75%, and it carries a sovereign guarantee rather than bank credit risk. FDs win on flexibility: any tenure, no age-60 requirement, and no ₹30 lakh cap.
Related Calculators
Post Office MIS
Calculate the monthly interest income from Post Office MIS schemes.
Fixed Deposit (FD)
Calculate the maturity amount and interest earned on Fixed Deposits.
Recurring Deposit (RD)
Plan your savings with estimates for Recurring Deposit maturity values.
SWP (Monthly Income)
Plan systematic withdrawals to generate a steady monthly income.
