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 — 8.2% for the July–September 2026 quarter — with a five-year term extendable by three. Small-savings rates are reset every quarter, so check the Department of Economic Affairs notification for the current figure.
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 once interest paid to a senior citizen by a bank or post office crosses ₹1,00,000 in a financial year (the limit was raised from ₹50,000 with effect from 1 April 2025) — 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?
8.2% a year for the July–September 2026 quarter, paid quarterly. The rate is fixed at the date of deposit and reviewed every quarter 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. For senior citizens TDS under Section 194A kicks in once bank or post-office interest crosses ₹1,00,000 in a financial year, and Section 80TTB offers a ₹50,000 deduction on interest income 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.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 15 Oct 2026. Sources: Department of Posts — small-savings interest rates: PPF 7.1%, NSC 7.7%, KVP 7.5%, SSA and SCSS 8.2%, MIS 7.4% (page reviewed 12 Aug 2026), Income Tax Department — deduction limits for AY 2026-27: 80C ₹1,50,000, 80CCD(1B) ₹50,000, 80D ₹25,000/₹50,000, 80TTA ₹10,000, 80TTB ₹50,000, s.24(b) ₹2,00,000 (page updated 9 Jul 2026). How we check these numbers.