What is the Senior Citizen Savings Scheme?
The Senior Citizen Savings Scheme is open to those aged 60+ (or 55+ for certain retirees). It pays interest quarterly at one of the highest sovereign-backed rates available — currently 8.2% — with a five-year term extendable by three.
The maximum deposit is ₹30 lakh per individual, and deposits qualify under Section 80C.
Formula & worked example
Quarterly payout = Annual interest / 4
Worked example: a ₹30,00,000 deposit at 8.2% earns ₹2,46,000 a year — a ₹61,500 quarterly payout, or about ₹20,500 a month. Over five years that is ₹12.3 lakh of interest, with the ₹30 lakh principal returned at maturity.
How to use this senior citizen savings scheme calculator
- Enter your deposit, up to the ₹30 lakh individual limit.
- The rate is fixed at the time of deposit for the full term.
- Choose the tenure — five years, extendable by three more.
- The quarterly payout is what actually reaches your bank account.
Smart tips
- A couple can invest ₹30 lakh each, giving ₹60 lakh at the household level.
- The rate is locked at deposit, so opening an account when rates are high protects income for five years.
- TDS applies if interest exceeds ₹50,000 a year for seniors — submit Form 15H if your total income is below the taxable limit.
- Section 80TTB gives senior citizens a ₹50,000 deduction on interest income in the old regime.
- Premature closure is allowed with a penalty of 1–1.5% depending on when you exit.
Frequently asked questions
What is the SCSS interest rate?
Currently 8.2% a year, paid quarterly. The rate is fixed at deposit and reviewed quarterly for new accounts.
What is the maximum SCSS deposit?
₹30 lakh per individual. A couple can hold ₹30 lakh each in separate accounts.
Is SCSS interest taxable?
Yes, at your slab rate. TDS applies above ₹50,000 of interest, and Section 80TTB offers a ₹50,000 deduction in the old regime.
Can SCSS be extended after 5 years?
Yes, by an additional three years, with the extension carrying the rate prevailing at the date of maturity.
Want the theory behind the numbers? Read our senior citizen guides on the Money Blog.