SCSS Calculator
Senior Citizen Savings Scheme — Calculate quarterly interest & maturity at 8.2% p.a.
✔ 8.2% p.a. — Highest government rate
✔ Max ₹30 lakh deposit
✔ Quarterly interest payout
✔ 80C deduction eligible
✔ Updated FY 2025-26
Deposit Amount
₹10,00,000
Interest Rate (p.a.)
8.2%
Current rate: 8.2% p.a. (Q1 FY 2026-27, confirmed March 30, 2026. Rate is locked at opening for full tenure.)
Tenure
5 years
SCSS has a 5-year tenure, now extendable unlimited times in 3-year blocks (SCSS Amendment, Nov 2023). Submit Form B within 1 year of each maturity.
Maturity Amount
₹10.00 L
Deposit
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Quarterly payout
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Monthly equivalent
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Annual interest
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Principal
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💡 SCSS interest is taxable. From FY 2025-26 (Budget 2025), TDS for senior citizens (60+) only if annual interest exceeds ₹1 lakh. Submit Form 15H to avoid TDS. New regime: income up to ₹12L is tax-free. Principal qualifies for Section 80C deduction up to ₹1.5L (old regime only).
📅 Year-wise SCSS Interest Payout
| Year | Principal | Q1 Interest | Q2 Interest | Q3 Interest | Q4 Interest | Annual Interest |
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On this page
What is SCSS (Senior Citizen Savings Scheme)?
The Senior Citizen Savings Scheme (SCSS) is a government-backed savings instrument introduced in 2004, specifically designed to provide regular income and financial security to retirees. Operated through post offices and designated banks, SCSS currently offers 8.2% interest per annum — the highest rate among all small savings schemes — paid out quarterly directly to the depositor's bank account.
SCSS is regulated under the Senior Citizen Savings Scheme Rules, 2004 and the interest rate is notified by the Ministry of Finance every quarter. The scheme prioritises capital safety and regular income, making it the cornerstone of most senior citizen financial plans.
SCSS Rules & Limits 2026
| Parameter | Details |
|---|---|
| Interest Rate | 8.2% p.a. (Q1 FY 2026-27, confirmed March 30, 2026; locked at opening) |
| Interest Payout | Quarterly — 1st April, 1st July, 1st October, 1st January |
| Minimum Deposit | ₹1,000 (in multiples of ₹1,000) |
| Maximum Deposit | ₹30,00,000 (raised from ₹15L in Budget 2023) |
| Tenure | 5 years + unlimited 3-year extensions (SCSS Amendment, Nov 2023) |
| Number of Accounts | Multiple allowed (individual or joint); total capped at ₹30L |
| Section 80C Deduction | Up to ₹1,50,000 per year (old tax regime only) |
| TDS Threshold | TDS @ 10% if annual SCSS interest exceeds ₹1,00,000 for 60+ holders (Budget 2025, w.e.f. FY 2025-26). ₹50,000 for 55–60 yr holders. |
| Premature Closure | Allowed after 1 year with penalty (1–1.5% of deposit) |
| Nomination | Available; joint account allowed with spouse only |
How is SCSS Interest Calculated?
SCSS interest is simple interest — unlike PPF or FD which compound. The interest is calculated on the principal amount at the annual rate and paid out every quarter. The principal itself is returned at maturity.
SCSS Quarterly Interest Formula
Quarterly Interest = Principal × (Rate / 4)
Annual Interest = Principal × Rate
Maturity Amount = Principal (interest is paid out quarterly, not added back)
Example: ₹10,00,000 × 8.2% ÷ 4 = ₹20,500 per quarter
Maturity Amount = Principal (interest is paid out quarterly, not added back)
Example: ₹10,00,000 × 8.2% ÷ 4 = ₹20,500 per quarter
This is a key distinction from PPF or FD: SCSS does not compound. The interest is paid out every quarter and the principal is returned at maturity. This makes SCSS ideal for retirees who need a regular, predictable income stream — not for those focused on wealth accumulation.
Worked Example: ₹30 Lakh SCSS Deposit
📘 Example: Maximum ₹30,00,000 SCSS deposit at 8.2% for 5 years
| Principal | ₹30,00,000 |
| Interest Rate | 8.2% p.a. |
| Tenure | 5 years |
| Quarterly Payout | ₹61,500 |
| Monthly Equivalent | ₹20,500 |
| Annual Interest | ₹2,46,000 |
| Total Interest over 5 years | ₹12,30,000 |
| Maturity Amount (principal returned) | ₹30,00,000 |
| Total Value (principal + interest) | ₹42,30,000 |
Who is Eligible for SCSS?
SCSS is available to the following categories of Indian residents:
- Age 60+: Any Indian resident individual aged 60 years or above.
- Voluntary retirees aged 55–60: Retired civilian employees who have received retirement benefits, provided the account is opened within 1 month of receiving the retirement benefit amount.
- Defence retirees aged 50–60: Retired defence personnel (army, navy, air force) aged 50 to 60, subject to the account being opened within 1 month of receiving retirement benefits.
- Joint accounts: Can be opened jointly with a spouse. The age eligibility is checked against the first/primary applicant only.
Not eligible: NRIs, PIOs, HUFs, and trusts cannot open SCSS accounts. If a resident account holder subsequently becomes an NRI, the account can continue until maturity but cannot be extended.
SCSS vs FD vs POMIS — Which is Better for Senior Citizens?
| Feature | SCSS | Bank FD (Senior) | POMIS |
|---|---|---|---|
| Interest Rate | 8.2% p.a. | 7.25–7.75% p.a. | 7.4% p.a. |
| Payout Frequency | Quarterly | Monthly / Quarterly / On maturity | Monthly |
| Maximum Deposit | ₹30 lakh | No limit | ₹9 lakh (single) / ₹15 lakh (joint) |
| Tenure | 5 yrs + unlimited 3-yr extensions | Flexible (7 days – 10 years) | 5 years (+ 1 extension) |
| 80C Deduction | Yes (old regime) | Yes (5-yr tax-saver FD only) | No |
| Government Guarantee | Yes (sovereign) | DICGC insured up to ₹5L | Yes (sovereign) |
| Best for | Highest safe return + quarterly income | Flexibility, no deposit cap | Monthly income need |
Verdict: SCSS offers the highest guaranteed return among these options and sovereign-level safety. Choose POMIS if you need monthly (not quarterly) payouts. Choose FD if you need flexibility or deposits above ₹30 lakh. Many financial planners recommend splitting retirement corpus between SCSS (for return) and POMIS (for monthly liquidity).
Tax Treatment of SCSS
Understanding the tax implications of SCSS is critical for retirement planning:
- Interest income: Fully taxable as "Income from Other Sources" at your applicable slab rate. SCSS does not have EEE status — unlike PPF.
- TDS (updated Budget 2025): For senior citizens aged 60+, TDS at 10% is deducted only if total SCSS interest in a financial year exceeds ₹1,00,000 (effective FY 2025-26). For SCSS held by those aged 55–60, the old ₹50,000 limit continues. If PAN is not provided, TDS rate is 20%.
- Form 15H: Senior citizens (60+) can submit Form 15H at the start of each financial year to receive SCSS interest without TDS deduction, if their total tax liability is nil. Under the new tax regime (FY 2025-26 onwards), income up to ₹12 lakh is tax-free — meaning many retirees with total income below ₹12 lakh have zero tax liability and should submit Form 15H. Under the old regime, the basic exemption is ₹3 lakh for 60–79 year olds and ₹5 lakh for those 80+.
- Section 80C deduction: The principal deposited is eligible for deduction up to ₹1,50,000 per year under Section 80C — but only under the old tax regime. No deduction is available under the new regime.
- Section 80TTB: Under the old tax regime, senior citizens can claim up to ₹50,000 deduction on interest income from bank and post office deposits (including SCSS) under Section 80TTB. This is over and above the 80C deduction. Not available under the new tax regime.
Premature Withdrawal Penalty
| Closure timing | Penalty |
|---|---|
| Before 1 year from opening | No interest paid; any interest already credited is recovered |
| After 1 year, before 2 years | 1.5% of deposit deducted from principal |
| After 2 years | 1% of deposit deducted from principal |
| During 3-year extension (after 1 year of extension) | No penalty |
| On death of depositor | No penalty; full amount paid to nominee |
How to Open an SCSS Account in India
SCSS accounts can be opened at any post office, SBI, all nationalised banks, and select private sector banks (ICICI Bank, HDFC Bank, Axis Bank). Many banks allow online account opening via net banking.
- Check eligibility — Confirm you are 60+, or a retiree aged 55–60 (within 1 month of retirement), or a defence retiree aged 50+.
- Gather documents — PAN card, Aadhaar, age proof (passport, voter ID, birth certificate), two passport-size photographs, and retirement/pension documents if applicable.
- Visit the bank or post office — Collect and fill SCSS Form A (Account Opening Form). Specify the deposit amount and nominate a family member.
- Mode of deposit — Deposits up to ₹1 lakh can be made in cash. Deposits above ₹1 lakh must be by cheque or demand draft.
- Link your bank account — Provide your savings account details for quarterly interest credit. The account is activated the same day.
- Collect the passbook — The bank or post office issues a passbook. All quarterly credits and transactions are recorded here.
Frequently Asked Questions
Yes, you can open multiple SCSS accounts — individually or jointly with your spouse — at the same or different banks and post offices. However, the total balance across all SCSS accounts cannot exceed ₹30 lakh. If you inadvertently deposit more than ₹30 lakh across accounts, the excess amount is returned without interest.
If the account holder passes away before maturity, the nominee or legal heir can: (1) Continue the account until maturity if the surviving spouse is a joint holder and is eligible for SCSS. (2) Claim a premature closure without any penalty — the full principal and interest accrued till the date of death are paid. The account does not earn interest beyond the date of death if claimed by a non-eligible nominee.
No. Unlike a bank FD, the SCSS interest rate is not fixed at the time of opening. The rate is revised quarterly by the Government of India. However, for existing accounts, the rate applicable is the rate at which the account was opened — changes only apply to new accounts. This means if you open an SCSS account at 8.2%, you receive 8.2% for the full 5-year tenure regardless of future revisions. This is a significant advantage of SCSS over comparable instruments.
SCSS does not offer automatic reinvestment of interest — it is paid out quarterly by design, since the scheme's primary goal is to provide regular income. However, you can use the quarterly interest to start a Recurring Deposit (RD) or SIP in a mutual fund, effectively creating a compounding effect on the interest income. Many retirees channel their SCSS quarterly payouts into liquid mutual funds or RDs for this purpose.
SCSS interest rates have varied over the years: 9.3% (FY 2011-12), 9.2% (FY 2012-13), 9.1% (FY 2013-16), 8.6% (FY 2016-17), 8.3% (FY 2017-18), 8.7% (Q1 FY 2018-19), 8.6% → 7.4% (FY 2020-21, reduced post-COVID), 8.0% (Q1 FY 2023-24), and 8.2% since Q3 FY 2023-24. The current 8.2% is among the highest rates in over a decade.
Yes. SCSS accounts can be transferred between post offices, between banks, or from a post office to a bank and vice versa. You need to submit a transfer application at the current institution. A transfer fee of ₹5 per ₹1,000 of deposit applies (minimum ₹50, maximum ₹10,000 for amounts above ₹2 lakh). The interest rate and tenure remain unchanged after transfer.