The Senior Citizen Savings Scheme (SCSS) is a government-backed fixed-income scheme specifically for Indian residents aged 60 and above. It offers one of the highest guaranteed interest rates among safe investment options — currently 8.2% per annum — paid out every quarter directly to your bank account. The scheme is available at post offices and select public/private sector banks across India.

Rule	Details
Minimum age	60 years. Exception: 55–60 years for VRS/superannuation retirees (must open within 1 month of receiving retirement benefits). 50+ for defence retirees.
Minimum investment	₹1,000
Maximum investment	₹30 lakh (increased from ₹15 lakh in Budget 2023)
Tenure	5 years. Can be extended by 3 years once after maturity.
Interest rate	8.2% p.a. (Q1 FY 2025–26) — reviewed quarterly by Government of India
Interest payout	Quarterly — on 1st April, 1st July, 1st October, 1st January
Tax on interest	Fully taxable as per income slab. TDS deducted if annual interest exceeds ₹50,000.
Section 80C benefit	Investment qualifies for ₹1.5 lakh 80C deduction
Nomination	Available. Nominee receives principal at maturity if holder passes away.
Where to open	Post offices, SBI, Bank of Baroda, Canara Bank, Union Bank, HDFC Bank, ICICI Bank, and others

SCSS Quarterly Interest Payout Reference (at 8.2% p.a.)

Current rate: 8.2% p.a. Quarterly interest = Investment × 8.2% ÷ 4. Interest is simple — not compounded. Maximum investment: ₹30 lakh.

Investment Amount	Quarterly Payout	Annual Income	5-Year Total Interest	Maturity Amount
₹3,00,000	₹6,150	₹24,600	₹1,23,000	₹4,23,000
₹5,00,000	₹10,250	₹41,000	₹2,05,000	₹7,05,000
₹7,00,000	₹14,350	₹57,400	₹2,87,000	₹9,87,000
₹10,00,000	₹20,500	₹82,000	₹4,10,000	₹14,10,000
₹15,00,000	₹30,750	₹1,23,000	₹6,15,000	₹21,15,000
₹20,00,000	₹41,000	₹1,64,000	₹8,20,000	₹28,20,000
₹25,00,000	₹51,250	₹2,05,000	₹10,25,000	₹35,25,000
₹30,00,000	₹61,500	₹2,46,000	₹12,30,000	₹42,30,000

Maximum investment of ₹30 lakh gives ₹61,500 per quarter (₹20,500/month equivalent). This is a guaranteed, government-backed income — zero credit risk. TDS at 10% applies if annual interest exceeds ₹50,000. Submit Form 15H if total income is below taxable limit to avoid TDS.

SCSS vs FD vs Post Office MIS — Senior Citizen Income Options Compared

FY 2025–26 rates. Senior citizen FD rates shown (0.25–0.50% extra over regular rates).

Factor	SCSS	Senior Citizen FD	Post Office MIS
Current rate	8.2% p.a.	7.0–7.75% p.a.	7.4% p.a.
Payout frequency	Quarterly	Monthly/quarterly/on maturity	Monthly
Maximum investment	₹30 lakh	No limit	₹9 lakh (single), ₹15 lakh (joint)
Tenure	5 years + 3yr extension	7 days to 10 years	5 years
Government backed	Yes — sovereign guarantee	Deposit Insurance up to ₹5L	Yes — sovereign guarantee
80C deduction	Yes	Only for 5yr Tax-Saver FD	No
TDS threshold	₹50,000/year	₹50,000/year (senior citizen)	No TDS
Premature closure	After 1yr with penalty	With penalty	After 1yr with penalty
Best for	Max guaranteed rate + 80C	Flexible tenure and amount	Monthly income without TDS

SCSS currently offers the highest guaranteed rate (8.2%) among government-backed schemes for senior citizens — higher than Post Office MIS (7.4%) and most bank senior citizen FDs (7–7.75%). For senior citizens in the 0% or 5% tax slab, SCSS is the clear first choice. For those in the 30% slab, the post-tax return difference narrows — consult a CA before deciding.

How to Use This Calculator

Enter Principal Amount — the amount you plan to invest (minimum ₹1,000, maximum ₹30 lakh)
Enter Current Interest Rate — default is 8.2% (Q1 FY 2025–26). Update if rate has changed — check India Post or RBI website for current quarter rate
Enter Scheme Tenure — 5 years for fresh account; 8 years if extending after maturity
Results show instantly — Quarterly Interest Payout, Total Interest (5 years), and Total Maturity Amount

Note: SCSS uses simple interest, not compound interest. The quarterly payouts are credited to your bank account — they are not reinvested into the scheme. If you want to reinvest, open separate RD or FD accounts with the quarterly income.

Key SCSS Rules — Extension, Premature Closure & TDS

Rule	Details	Penalty/Note
Extension after maturity	Can extend by 3 years once by applying within 1 year of maturity	Interest rate applicable at the time of extension — not the original rate
Premature closure — Year 1	Not allowed	Account cannot be closed before 1 year
Premature closure — Year 1–2	Allowed with penalty	1.5% of principal deducted as penalty
Premature closure — Year 2–5	Allowed with penalty	1% of principal deducted as penalty
TDS on interest	Deducted at 10% if total SCSS interest > ₹50,000/year	Submit Form 15H (senior citizens) to avoid TDS if income below taxable limit
Multiple accounts	You can open multiple SCSS accounts (post office + banks)	Total investment across all accounts cannot exceed ₹30 lakh
Joint account	Allowed — spouse as joint holder	Total limit still ₹30 lakh; interest goes to first holder’s account
Nomination	Mandatory to nominate	Nominee gets principal on death of holder; interest stops from date of death

FAQ on SCSS Calculator

At 8.2% p.a., quarterly interest on ₹15 lakh = ₹15,00,000 × 8.2% ÷ 4 = ₹30,750 per quarter. Annual income = ₹1,23,000. Over 5 years, total interest = ₹6,15,000. Maturity amount = ₹21,15,000 (principal returned; interest is paid quarterly throughout the tenure).

Yes. VRS (Voluntary Retirement Scheme) and superannuation retirees between 55 and 60 years of age can open an SCSS account. The condition is that the account must be opened within one month of receiving the retirement benefits (provident fund, gratuity, commuted pension, etc.). The invested amount should not exceed the total retirement benefit received.

Yes, SCSS interest is fully taxable as per your income tax slab — unlike PPF interest which is tax-free. TDS at 10% is deducted if your total SCSS interest from a bank/post office exceeds ₹50,000 in a financial year. To avoid TDS, submit Form 15H (for senior citizens) at the beginning of each financial year declaring that your total income is below the taxable limit. This does not exempt you from paying tax — only from TDS deduction at source.

Interest stops from the date of the account holder’s death. The nominee or legal heir can claim the principal and any unpaid accrued interest by submitting a claim form with death certificate and identity proof. If a joint account was opened with spouse, the surviving joint holder can continue the account until maturity. The surviving spouse can also transfer the amount into their own SCSS account within the ₹30 lakh limit.

SCSS currently offers 8.2% versus most senior citizen FDs at 7–7.75% — making SCSS the better rate option. SCSS also gives 80C deduction (FD gives it only for 5-year tax-saver FD). The advantages of FD: no ₹30 lakh cap, flexible tenures (7 days to 10 years), some banks offer slightly higher rates. For senior citizens with up to ₹30 lakh to invest, SCSS first — then FD for amounts above the limit or for short-tenure needs.