Educational Purpose Only: This calculator provides estimates for informational purposes. SCSS interest rates are set by the government and may change quarterly. Maximum deposit is ₹30 lakhs. SCSS is available to individuals aged 60+ (or 55+ on retirement).
Maximum: ₹30,00,000
Key Features
- Interest paid quarterly
- Principal returned at maturity
- Can be extended by 3 years once
How it works
SCSS pays interest quarterly on your deposit at the prevailing rate set by the government. The interest is not compounded — it is paid out every quarter to your linked bank account. At maturity (after 5 years), you receive your original deposit back. If you extend the scheme for a further 3 years, you continue to receive the same quarterly payouts. The calculator shows your quarterly income, annual income, total interest over the chosen tenure, and maturity amount.
Key features of SCSS
Eligibility
Available to Indian residents aged 60 and above. Those who have taken voluntary retirement may open accounts from age 55, subject to conditions.
Deposit Limits
Minimum deposit of ₹1,000. Maximum total deposits across all SCSS accounts is ₹30,00,000. Deposits must be in multiples of ₹1,000.
Tax Treatment
Interest income from SCSS is taxable. TDS is deducted if interest exceeds ₹50,000 per year. You may submit Form 15H to avoid TDS if total income is below the taxable limit.
Premature Withdrawal
Premature closure is allowed after 1 year with a penalty of 1.5% of deposit for closure between 1–2 years, and 1% after 2 years.
What is the Senior Citizen Savings Scheme?
SCSS is a government-backed savings scheme meant specifically for retirees. It is open to Indian residents aged 60 and above, and to those aged 55–60 who have retired under a voluntary retirement scheme (VRS) or special retirement scheme, provided the account is opened within one month of receiving retirement benefits. Each account runs for a fixed tenure of 5 years, which can be extended once by a further 3 years after maturity. The maximum you can deposit — across all your SCSS accounts combined — is ₹30,00,000. Unlike a recurring or cumulative fixed deposit, SCSS does not compound or reinvest your interest: it pays it out to your linked bank account every quarter, which is why the scheme is popular as a source of regular retirement income rather than a wealth-accumulation tool.
Worked example: ₹15,00,000 deposit at 8.2%
Say you deposit ₹15,00,000 at the current rate of 8.2% p.a. Your quarterly payout is calculated as deposit × rate ÷ 4: 15,00,000 × 8.2% ÷ 4 = ₹30,750 every quarter. Over a full 5-year tenure, that is 20 quarterly payouts, so total interest received is 30,750 × 20 = ₹6,15,000, on top of your ₹15,00,000 principal returned at maturity. This assumes the 8.2% rate stays constant for the full tenure. In practice, the government revises the SCSS rate every quarter, but that revision only affects new deposits opened in a later quarter — once your account is opened, it continues earning the rate that was applicable on your opening date for the rest of that tenure.
How SCSS interest is taxed
SCSS interest is fully taxable and gets added to your total income for the year, taxed at your applicable income tax slab rate — there is no special exemption on the interest itself. Because SCSS is aimed at senior citizens, TDS is deducted whenever the total interest paid across your SCSS accounts in a financial year exceeds ₹50,000; you can avoid this by submitting Form 15H if your total income is below the taxable threshold. Separately, the deposit amount (not the interest) qualifies for a deduction under Section 80C, up to a limit of ₹1,50,000 per financial year — so a ₹15,00,000 deposit only gets you the standard ₹1.5 lakh 80C benefit in the year you invest, not a deduction on the full amount or on the interest earned afterward.
SCSS vs Post Office Monthly Income Scheme (POMIS)
SCSS and POMIS are both government-backed, quarterly/monthly-income schemes, but they serve different depositors. SCSS is restricted to senior citizens (60+, or 55+ on VRS) and its deposit qualifies for Section 80C deduction; POMIS has no age restriction and offers no 80C benefit on the deposit. SCSS also carries a higher deposit limit and, historically, a higher interest rate than POMIS. If you are not yet 60 and want a monthly-income product, or want to compare returns side by side, try the Post Office MIS Calculator.
Frequently Asked Questions
Where can I open an SCSS account?
SCSS accounts can be opened at any post office or authorised public and private sector banks across India. You will need age proof, identity proof, and address proof along with the deposit amount.
Can I have multiple SCSS accounts?
Yes. You can open multiple SCSS accounts individually or jointly, but the total deposit across all accounts must not exceed ₹30,00,000.
Is SCSS better than a bank fixed deposit for seniors?
SCSS typically offers higher interest rates than bank FDs for senior citizens, and it is government-backed, making it one of the safest and most attractive fixed-income options for retirees.
Is the interest from SCSS taxable?
Yes. SCSS interest income is fully taxable as per your income tax slab. TDS at 10% is deducted if total interest in a year exceeds ₹50,000. Submit Form 15H if your total income is below the taxable limit to avoid TDS.
What is the current SCSS interest rate?
The current SCSS interest rate is 8.2% per annum (as of Q1 FY 2025-26), paid quarterly. The rate is reviewed and announced by the Government of India every quarter. SCSS consistently offers one of the highest government-backed rates for senior citizens.
Related Calculators
This calculator is for educational purposes only. SCSS interest rates are set by the Government of India and may be revised quarterly. Always verify the current rate with your bank or post office before investing.