- 8.2%Interest a year
- Every 3 monthsInterest paid
- ₹30 LMost per person
- 5 yearsExtend by 3 years
What is the Senior Citizen Savings Scheme?
SCSS is a savings scheme of the Government of India for people aged 60 and above. It started in 2004 and today runs under the Senior Citizens' Savings Scheme, 2019, as amended on 7 November 2023. Many retired people use it because the income is regular and the money is safe with the government.
- Step 1Deposit oncePut in ₹1,000 to ₹30 L at a post office or bank.
- Step 2Get interest every 3 months8.2% a year, paid into your savings account.
- Step 3Get your money backAfter 5 years, or extend for 3 more.
Example: Ramesh, 62. He puts ₹15,00,000 in SCSS at 8.2%. Every 3 months, interest comes into his savings account. After 5 years, his ₹15,00,000 comes back.
- Every 3 months
- ₹30,750
- About a month
- ₹10,250
- Interest in 5 years
- ₹6,15,000
SCSS interest rate 2026: 8.2%
The rate is 8.2% a year for October to December 2026. The Ministry of Finance reviews it every 3 months, but the rate on the day you open your account stays the same for all 5 years.
- Interest is paid on the first working day of April, July, October, January.
- It goes straight into your post office or bank savings account. You can also take it by cheque at the branch.
- It is simple interest. Interest you leave unclaimed does not earn any extra interest.
| Period | SCSS rate |
|---|---|
| From April 2023 | 8.2% |
| From January 2023 | 8% |
| From October 2022 | 7.6% |
| From April 2020 | 7.4% |
See every past rate on the SCSS interest rate page.
How much income can you get from SCSS?
Income at 8.2%. The monthly figure is each quarterly payment divided by 3.
| Deposit | Every 3 months | About a month | In a year |
|---|---|---|---|
| ₹1,00,000 | ₹2,050 | ₹683 | ₹8,200 |
| ₹5,00,000 | ₹10,250 | ₹3,417 | ₹41,000 |
| ₹10,00,000 | ₹20,500 | ₹6,833 | ₹82,000 |
| ₹15,00,000 | ₹30,750 | ₹10,250 | ₹1,23,000 |
| ₹20,00,000 | ₹41,000 | ₹13,667 | ₹1,64,000 |
| ₹30,00,000 | ₹61,500 | ₹20,500 | ₹2,46,000 |
For your exact amount, tax and TDS, use the SCSS calculator.
SCSS eligibility: who can open an account?
- Yes: Indian residents aged 60 or more
- Yes: Retired people aged 55 to 60 (including VRS), within 3 months of getting retirement money
- Yes: Retired defence personnel from age 50 (not civilian defence staff)
- Yes: The spouse of a government employee who died in service at age 50 or more
- Yes: Husband and wife together, as a joint account
- No: NRIs
- No: HUFs (Hindu Undivided Families)
- No: A joint account with anyone other than your spouse
Retired before 60? You must open the account within 3 months of getting your retirement benefits, and you can invest only up to the amount of those benefits (and not more than ₹30 L). Retirement benefits include:
- Provident Fund dues and gratuity (retirement, superannuation or death gratuity)
- Commuted pension and leave encashment
- The savings part of group insurance (GSLI) paid on retirement
- Ex-gratia paid under a voluntary or special voluntary retirement scheme
SCSS deposit rules, more accounts and joint accounts
- Amount: at least ₹1,000, in multiples of ₹1,000, up to ₹30,00,000.
- One deposit per account: you cannot add money later. To invest more, open another account.
- More than one account: allowed, at the same or different post offices and banks, as long as all of them together stay within ₹30,00,000.
- Joint account: only with your husband or wife. The whole amount counts for the first holder, who also pays tax on the interest. A couple can invest up to ₹60,00,000 with an account each.
- Extra deposit by mistake: any amount above the limit is refunded, and earns only Post Office savings interest until then.
- Open again: after you close an account, you can open a new one, within the limit.
How to open an SCSS account: documents and steps
- Step 1Visit a post office or bankAny post office, or an authorised bank branch where you have a savings account.
- Step 2Fill in Form-1The SCSS account opening form, also on the India Post website.
- Step 3Give KYC documentsAadhaar, PAN and a photo, with proof of age if needed.
- Step 4Pay the depositCash below ₹1,00,000; more by cheque or transfer.
- Step 5Add a nomineeSo your family gets the money easily.
- Step 6Get your passbookProof of your account and deposit.
Documents to carry:
| Who | Documents |
|---|---|
| Everyone | Filled account opening form, Aadhaar, PAN, passport-size photo, proof of age if Aadhaar does not show it |
| Retired, under 60 | Certificate from the employer giving the retirement details, the retirement benefits and the period of service, plus proof of the date the benefits were paid |
| Spouse of a government employee who died in service | Death certificate and proof of age of the employee, and details of the financial help received |
| Joint account | KYC documents of both husband and wife |
Some banks also let existing customers open SCSS through net banking. Ask your bank if it offers this.
SCSS tax benefit and TDS
- ₹1.5 LDeduction on depositOld regime, Section 123 (earlier 80C)
- ₹50KInterest deductionOld regime, Section 153 (earlier 80TTB)
- TaxableInterestAt your slab rate
- 10% TDSIf interest is over ₹1 LForm 121 stops it if your tax is nil
- On the deposit: in the old tax regime, you can claim your deposit under Section 123 (earlier 80C), up to ₹1,50,000 a year, together with your other tax-saving investments.
- On the interest: SCSS interest is added to your income. In the old regime, senior citizens can deduct up to ₹50,000 of bank and post office interest a year. The new tax regime does not give either deduction.
- TDS: if your SCSS interest is more than ₹1,00,000 in a year, 10% TDS is cut. If your total income is below the taxable limit, give Form 121 (it replaced Form 15H from April 2026) at the start of each year. Any extra TDS comes back when you file your tax return.
Example: Ramesh's tax. His SCSS interest is ₹1,23,000 a year. It is above ₹1,00,000, so TDS is cut unless he gives Form 121. In the old regime, he can deduct ₹50,000, so only ₹73,000 of it is taxed.
- Interest a year
- ₹1,23,000
- TDS cut
- ₹12,300
- Taxed (old regime)
- ₹73,000
SCSS premature withdrawal rules
You can close SCSS early, but part of your money is cut. You cannot take out only part of it. For a ₹10,00,000 deposit:
- To close, submit Form-3 with your passbook at the branch.
- An extended account closed within 1 year of the extension loses 1% of the deposit. After that first year, it can be closed with no charge.
- If the account holder dies, there is no charge (see below).
SCSS maturity and extension
After 5 years, you can take your money out with Form-3, or extend the account by 3 years with Form-4. Since the rule change of 7 November 2023, you can extend again and again, 3 years at a time.
- Apply within 1 year of maturity, or of the end of each 3-year block. The extension starts from the maturity date anyway.
- The extended years earn the SCSS rate in force on the maturity date, not your old rate.
- You keep getting interest every 3 months during the extension.
If Ramesh extends for one block of 3 years at today's rate, he gets another ₹3,69,000 in interest.
Nominee, death of the account holder and transfer
- Step 1NomineeAdd one or more nominees when you open the account, or later at the branch.
- Step 2If the holder diesThe account closes. Nominee or heirs get the deposit, with SCSS interest to the date of death and Post Office savings interest after.
- Step 3Spouse can continueIf the spouse is a joint holder or the only nominee, and is eligible, the spouse can keep the account running.
- Step 4Moving cityTransfer the account to another post office or bank branch. Your rate and term stay the same.
SCSS: strengths and limits
- Yes: Backed by the Government of India
- Yes: Fixed rate for 5 years, often higher than bank FDs
- Yes: Regular income every 3 months
- Yes: Tax deduction on the deposit in the old regime
- No: Interest is taxable
- No: Limit of ₹30 L per person
- No: Charge for closing early, no part withdrawal
- No: Paid every quarter, not every month
SCSS vs Post Office MIS vs senior citizen FD
| SCSS | Post Office MIS | Senior citizen FD | |
|---|---|---|---|
| Who can invest | 60+ (some retirees earlier) | Anyone | Usually 60+ |
| Interest paid | Every quarter | Every month | Monthly, quarterly or at the end |
| Maximum | ₹30 L | ₹9 L single, ₹15 L joint | No limit |
| Term | 5 years | 5 years | 7 days to 10 years |
| Tax deduction | Old regime, Section 123 (80C) | No | Only 5-year tax-saver FD |
Read SCSS vs Post Office MIS, or compare numbers on the Post Office MIS calculator.
Frequently asked questions
What is the Senior Citizen Savings Scheme?
It is a government savings scheme for people aged 60 and above. You deposit money once, and get interest every 3 months for 5 years at 8.2% a year. At the end, you get your deposit back.
Who is eligible for SCSS?
Indian residents aged 60 or more. People aged 55 to 60 who have retired can join if they invest within 3 months of getting their retirement money. Retired defence personnel can join from 50. NRIs and HUFs cannot join.
What documents are needed to open an SCSS account?
The account opening form (Form-1), Aadhaar, PAN and a passport-size photo, with proof of age if Aadhaar does not show it. Retirees under 60 also need a certificate from the employer about the retirement and the retirement benefits, and proof of the date the benefits were paid.
How much can I invest in SCSS?
From ₹1,000 up to ₹30,00,000, in multiples of ₹1,000. The ₹30 L limit is for all your SCSS accounts together. Retirees under 60 can invest only up to the retirement money they received.
Can I add more money to my SCSS account later?
No. Each account takes one deposit, at the time of opening. To invest more, open another account, as long as your total stays within ₹30,00,000.
Can a husband and wife open SCSS together?
Yes. A joint account is allowed only with your spouse, and the whole deposit counts for the first holder. Each spouse can also open their own account, so a couple can invest up to ₹60,00,000 in total.
Is SCSS interest paid monthly?
No, every quarter: on the first working day of April, July, October, January. To use it as monthly income, divide each payment by 3. On ₹15,00,000, that is about ₹10,250 a month.
Is SCSS interest taxable?
Yes, at your slab rate. In the old tax regime, senior citizens can deduct up to ₹50,000 of interest a year under Section 153 of the Income-tax Act, 2025 (earlier Section 80TTB). TDS of 10% is cut if your SCSS interest is more than ₹1,00,000 in a year, unless you give Form 121.
Can I close SCSS before 5 years?
Yes. Before 1 year, the interest already paid is taken back. After 1 year and before 2, 1.5% of the deposit is cut. After 2 years, 1% is cut. You cannot take out only part of the money.
How many times can I extend SCSS?
As many times as you like, 3 years at a time, since the rule change of 7 November 2023. Apply in Form-4 within 1 year of maturity, or of the end of each 3-year block.
What happens to SCSS if the account holder dies?
The account is closed and the money is paid to the nominee or legal heirs, with SCSS interest up to the date of death and Post Office savings interest after that. If the spouse is a joint holder or the only nominee, and is eligible for SCSS, the spouse can continue the account instead.
Is SCSS better than a bank FD for senior citizens?
It depends on the bank rate at the time. SCSS is backed by the government and often pays more than most bank FDs, but it has a 5-year term and a deposit limit. Compare the current rates before you decide.