SCSS Extension Calculator — Returns for 5+3 Year Tenure
How much more you earn by extending SCSS, how the extension rate works, and when to extend vs open a fresh account
SCSS 5+3 Year Extended Returns at 8.2%
| Deposit | 5-yr interest | 3-yr extension | 8-yr total | Monthly equiv. (8 yr) |
|---|---|---|---|---|
| ₹5,00,000 | ₹2,05,000 | ₹1,23,000 | ₹3,28,000 | ₹3,417 |
| ₹10,00,000 | ₹4,10,000 | ₹2,46,000 | ₹6,56,000 | ₹6,833 |
| ₹15,00,000 | ₹6,15,000 | ₹3,69,000 | ₹9,84,000 | ₹10,250 |
| ₹20,00,000 | ₹8,20,000 | ₹4,92,000 | ₹13,12,000 | ₹13,667 |
| ₹30,00,000 (max) | ₹12,30,000 | ₹7,38,000 | ₹19,68,000 | ₹20,500 |
How SCSS Extension Works — Step by Step
- At 5-year maturity, you have 1 year to submit Form B for extension (i.e., up to 12 months after the original maturity date)
- Collect and submit Form B at your bank or post office branch
- The account extends for 3 years at the SCSS rate prevailing on the date you submit Form B — not your original opening rate
- No fresh deposit or top-up is possible — only the original principal continues
- Quarterly interest continues to be paid throughout the extension period
- After the 3-year extension matures, you can extend again (unlimited times) or close the account
🔗 Also read
Extend vs Open Fresh SCSS Account — When to Choose What
| Factor | Extend (Form B) | Close & Open Fresh |
|---|---|---|
| Process | Simple — one form, same account | Close old + open new — more paperwork |
| Rate | Rate at extension date | Rate at new opening date — same outcome |
| KYC | Not required again | Full KYC again |
| 80C deduction | No — only on fresh deposits | Yes — new deposit qualifies for 80C |
| Add more funds | ❌ Not possible | ✅ Yes — can deposit fresh amount in new account |
| Best when | No additional funds, rate is acceptable, want simplicity | Have fresh funds to add, or want new 80C benefit |
What If You Don't Extend at Maturity?
If you do not submit Form B and do not close the account within 1 year of maturity, the balance automatically earns the Post Office Savings Account rate (currently ~4%) — far below the 8.2% SCSS rate. This is a significant loss: ₹30L earning 4% instead of 8.2% = losing ₹1,26,000/year.
Action required: Set a reminder 3–6 months before your SCSS maturity date to decide and act — either submit Form B to extend or visit the branch to close and reinvest.
⚡ Key Takeaways
- SCSS can be extended unlimited times in 3-year blocks since November 2023 amendment
- Submit Form B within 1 year of maturity — do not miss this window
- Extension rate = SCSS rate at the time you submit Form B (not your original opening rate)
- On ₹30L: 8-year total interest = ₹19,68,000 (assuming 8.2% throughout)
- No fresh funds can be added on extension — open a new account separately if adding more
- Not extending leads to earning only ~4% on your balance — set a calendar reminder
Is This Page Right for You?
✓ Who should use this
- SCSS holders approaching the 5-year maturity date and deciding what to do next
- Those comparing whether to extend SCSS or invest in a bank FD after maturity
- Financial planners modelling 8-year SCSS returns for clients
⚠ Who should think twice
- Those with a fresh lump sum to invest at maturity — open a new SCSS account to add more funds
Pros & Cons
✓ Advantages
- Unlimited extensions (since Nov 2023) — keep earning 8.2% guaranteed return indefinitely
- Simple extension process — one form, no new KYC
- No penalty for closing after 1 year of extension — full flexibility
- Rate at extension still typically competitive with bank FDs
⚠ Limitations
- Extension rate may be lower than original opening rate if rates fall over time
- Cannot add fresh funds on extension — need to open a separate SCSS account
- No 80C deduction on extension (only on fresh deposits in new accounts)
- Must actively submit Form B — forgetting means earning only ~4% until you act
📋 Disclaimer & Source: All SCSS data is sourced from the Ministry of Finance, Government of India and India Post official guidelines. Current rate of 8.2% p.a. is effective from April 1, 2026 (Q1 FY 2026-27). Next review expected: June 30, 2026. Extension rules per SCSS Amendment November 2023 (unlimited blocks). Original 5-year rules per SCSS Rules 2004, Rule 9. This page was last reviewed on April 15, 2026. Content is for informational purposes only and does not constitute financial advice. Consult a SEBI-registered financial advisor before making investment decisions. · Full Disclaimer
📈 5-year maturity returns table →
💰 Close during extension — rules →
📋 SCSS extension rules in full →
Frequently Asked Questions
The extension rate is the SCSS rate notified by the Ministry of Finance for the quarter in which you submit Form B. It is not your original opening rate. If the rate at extension is 7.8% (if it falls in future), you earn 7.8% for the 3-year extension. The rate is then locked for that 3-year block.
Yes — since the November 2023 amendment, SCSS can be extended unlimited times in successive 3-year blocks. After each 3-year extension period, submit Form B again within 1 year to extend further.
After 1 year of the extension period has passed, you can close the account without any penalty. If you close within 1 year of the extension start date, a penalty of 1% of the deposit applies.
The balance earns the Post Office Savings Account interest rate (currently ~4%) until you close the account. You have 1 year from maturity to submit Form B for extension. After 1 year without action, the account continues at 4% — not 8.2%. Always act before the 1-year post-maturity window closes.
No. Extensions do not allow additional deposits. Only the original principal continues into the extension period. If you want to invest additional funds, open a separate new SCSS account (subject to the ₹30L aggregate limit) alongside the extended account.