SCSS Interest Rate 2026 — 8.2% p.a.
Confirmed for Q1 FY 2026-27 (April–June 2026) by Ministry of Finance · Locked at account opening for full 5-year tenure
⚡ Key Takeaways
- Current SCSS rate: 8.2% p.a. for Q1 FY 2026-27 — highest guaranteed rate in India
- Rate is locked at account opening — future cuts do not affect existing accounts
- Interest paid quarterly on 1 April, 1 July, 1 October, 1 January
- On maximum deposit of ₹30,00,000: quarterly payout of ₹61,500 (₹20,500/month equivalent)
- Rate beats best bank senior citizen FD by 0.45–0.70% p.a.
Current SCSS Interest Rate — Q1 FY 2026-27
| Quarter | Period | Rate (p.a.) | Status |
|---|---|---|---|
| Q1 FY 2026-27 | April – June 2026 | 8.2% | ✅ Current |
SCSS Interest Rate History (2018–2026)
| Period | Rate p.a. | Change |
|---|---|---|
| Oct 2023 – Jun 2026 (current) | 8.2% | +0.2% from prev |
| Apr 2023 – Sep 2023 | 8.0% | +0.4% from prev |
| Jan 2023 – Mar 2023 | 8.0% | Raised from 7.6% |
| Apr 2020 – Dec 2022 | 7.4% – 7.6% | COVID-era reduction |
| Jan 2019 – Mar 2020 | 8.6% – 8.7% | Peak recent rate |
| 2016 – 2018 | 8.3% – 8.5% | — |
| 2004 (launch) | 9.0% | Inaugural rate |
Source: Ministry of Finance quarterly notifications. Rates shown are approximate ranges for each period.
🔗 Also read
The Rate Lock-in Advantage Explained
When you open an SCSS account today at 8.2%, that rate is locked for the full 5-year tenure — even if the government reduces the rate next quarter. This is a significant advantage over bank FDs, where renewal rates are often lower.
📘 Example: Rate lock-in in action
| You open SCSS in April 2026 at 8.2% | Rate is locked |
| Govt reduces SCSS rate to 7.8% in Jan 2027 | New accounts get 7.8% |
| Your account (opened in Apr 2026) | Continues earning 8.2% until maturity in April 2031 |
Extension note: When you extend SCSS after 5 years, the extension gets the rate prevailing at that time — not your original rate. So the lock-in applies to the original 5-year period only.
Quarterly Interest Credit Dates — FY 2026-27
| Credit Date | For Quarter | Notes |
|---|---|---|
| 1 July 2026 | April–June 2026 | First credit for accounts opened in Q1 FY 2026-27 |
| 1 October 2026 | July–September 2026 | — |
| 1 January 2027 | October–December 2026 | — |
| 1 April 2027 | January–March 2027 | — |
Interest is auto-credited via ECS/NACH to your linked savings account. If 1st falls on a holiday, credit happens the next working day.
Quick Returns Reference — at 8.2% p.a.
| Deposit | Quarterly | Monthly equiv. | Annual | 5-year total |
|---|---|---|---|---|
| ₹5,00,000 | ₹10,250 | ₹3,417 | ₹41,000 | ₹2,05,000 |
| ₹10,00,000 | ₹20,500 | ₹6,833 | ₹82,000 | ₹4,10,000 |
| ₹15,00,000 | ₹30,750 | ₹10,250 | ₹1,23,000 | ₹6,15,000 |
| ₹20,00,000 | ₹41,000 | ₹13,667 | ₹1,64,000 | ₹8,20,000 |
| ₹30,00,000 (max) | ₹61,500 | ₹20,500 | ₹2,46,000 | ₹12,30,000 |
→ Use the SCSS Calculator for your exact deposit amount.
SCSS Rate vs Best Bank FD Rates (April 2026)
| Institution | Senior Citizen FD (5 yr) | SCSS Rate | SCSS extra/yr on ₹20L |
|---|---|---|---|
| SBI | 7.50% | 8.2% | +₹14,000 |
| HDFC Bank | 7.75% | 8.2% | +₹9,000 |
| ICICI Bank | 7.75% | 8.2% | +₹9,000 |
| Post Office TD (5 yr) | 7.50% | 8.2% | +₹14,000 |
SCSS Interest Rate — Pros & Cons
✅ Advantages
- Highest guaranteed rate in India at 8.2% p.a.
- Rate locked for full 5 years — immune to future cuts
- Government-sovereign backing — zero credit risk
- Predictable quarterly income — easy to budget
⚠️ Limitations
- Rate is simple interest — not compound (quarterly interest doesn't compound within SCSS)
- Extension gets the rate at extension date, not original rate
- Rate could increase after you lock in — but you miss the higher rate on existing account
📋 Disclaimer & Source: All SCSS data on this page is sourced from the Ministry of Finance, Government of India and India Post official guidelines. Interest rate of 8.2% p.a. is effective from April 1, 2026 (Q1 FY 2026-27). 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 advisor before making investment decisions. · Full Disclaimer
Is SCSS Right for You?
✅ Who should use this
- Senior citizens planning to open a new SCSS account
- Investors comparing SCSS rate vs bank FD rates
- Those checking if their locked-in rate still beats current FDs
- Financial planners advising retired clients
⚠️ Who should think twice
- Those below 60 — SCSS has age restrictions
- Investors who need monthly (not quarterly) income
- NRIs — SCSS is only for resident Indians
📈 Calculate your exact returns at 8.2% →
🏦 SCSS rate vs best bank FD rates →
📆 Extension rate rules explained →
Frequently Asked Questions
The SCSS interest rate is 8.2% per annum for Q1 FY 2026-27 (April–June 2026). This was confirmed by the Ministry of Finance on March 30, 2026. It has been at 8.2% continuously since October 2023, making it the longest stable period in recent SCSS history.
No. Once you open an SCSS account, your rate is locked for the full 5-year tenure. Future government revisions only apply to new accounts. This rate lock-in is one of SCSS's biggest advantages over bank FDs, where rates at renewal are often lower.
Interest accrues daily/monthly but is paid out quarterly on the 1st of April, July, October, and January. SCSS uses simple interest — there is no compounding. The quarterly amount is Principal × 8.2% ÷ 4.
No. Unclaimed quarterly SCSS interest sitting in your savings account does not earn additional interest within SCSS. However, it earns whatever interest your savings account pays. To compound it, transfer it to a recurring deposit or liquid mutual fund.
The official SCSS rate is notified by the Ministry of Finance at the end of each quarter. You can verify it at the India Post website, NSI India (nsiindia.gov.in), or the Ministry of Finance gazette notifications. Current rate: 8.2% p.a.
Nothing — if you have an existing SCSS account, your rate is locked at the rate prevailing on your account opening date. Rate reductions by the government only affect new accounts opened after that revision. This rate lock-in is one of SCSS's strongest features.
Yes, as of Q1 FY 2026-27. At 8.2% with sovereign (Government of India) backing, SCSS is the highest guaranteed return available to eligible individuals. Small Finance Banks may offer higher FD rates (8.5–9%), but those carry higher credit risk and are not government-guaranteed.