Senior Citizen Savings Scheme Calculator

Senior Citizen Savings Scheme explained

The Senior Citizen Savings Scheme is a government-backed deposit scheme run through post offices and designated public sector banks. Unlike most fixed deposits, it pays interest quarterly rather than at maturity. That structure suits retirees who want a regular payout from a lump sum, not just a bigger number at the end.

Who can open an SCSS account

The standard eligibility age is 60. Two categories get exceptions: retired defence personnel can open an account from age 50, and those who took voluntary retirement under a government scheme can open one between 55 and 60 -- but only if they apply within one month of receiving their retirement proceeds.

NRIs are not eligible. HUFs cannot open SCSS accounts. A joint account is allowed only with a spouse -- the first named holder must meet the age requirement; the co-holder does not.

Current rate and deposit limits

The current rate for Q1 FY2026-27 (April to June 2026) is 8.2% per annum. The government has held it at 8.2% since April 2023. Rates are reviewed each quarter, and the Ministry of Finance publishes any change before the quarter begins -- so check before opening a new account.

The maximum deposit is ₹30 lakh per account. You can hold multiple SCSS accounts, but the combined deposits across all your SCSS accounts cannot exceed ₹30 lakh. A spouse who is also 60 or older can independently open a separate account with their own ₹30 lakh limit.

How quarterly payouts work

SCSS pays simple interest -- there is no compounding. Quarterly interest = deposit amount x annual rate / 4. At 8.2% on ₹30 lakh, that is ₹61,500 per quarter, or about ₹20,500 per month as an equivalent. Over the full 5-year tenure (20 quarters), total interest received is ₹12,30,000, with the ₹30 lakh principal returned at maturity.

Interest is credited to your linked bank account or post office savings account on 1 April, 1 July, 1 October, and 1 January. If you do not withdraw it, it goes into your savings account -- it does not get reinvested or compounded inside the SCSS account.

5-year tenure and the 3-year extension

The standard tenure is 5 years. Once your account matures, you can extend it for one additional 3-year block -- but you must request the extension within 1 year of the maturity date. The rate during that extension is whatever the government has set at the time you apply; your original rate does not carry over. After the 3-year block, no further extension is possible.

Section 80C and TDS

The deposit qualifies for a Section 80C deduction up to ₹1.5 lakh in the year you make it. The principal returned at maturity is not taxed.

The interest, on the other hand, is fully taxable as income at your slab rate. TDS at 10% kicks in if total SCSS interest in a financial year exceeds ₹50,000. At 8.2% on ₹30 lakh, your annual interest is ₹2,46,000 -- TDS will be deducted each quarter. File Form 15H at the start of each financial year if your total income is below the basic exemption limit.

Premature closure

You can close the account early, but there are penalties. Closing before 1 year: no interest is paid and any interest already credited is recovered. Closing between 1 and 2 years: a penalty of 1.5% of the deposit is deducted. Closing after 2 years (but before 5 years): a penalty of 1% of the deposit is deducted. Premature closure after death of the account holder carries no penalty.

Worked example at maximum deposit

Deposit: ₹30 lakh. Rate: 8.2% p.a. Tenure: 5 years.

• Quarterly payout: ₹30,00,000 x 8.2% / 4 = ₹61,500
• Annual interest: ₹61,500 x 4 = ₹2,46,000
• Total interest over 5 years (20 quarters): ₹12,30,000
• Principal returned at maturity: ₹30,00,000
• Total value received: ₹42,30,000

₹61,500 every quarter without doing anything -- that is the practical appeal. Most retirees parking gratuity or EPF proceeds in SCSS are not chasing growth; they want a number they can count on arriving four times a year.

Frequently asked questions