Min: ₹1,000, in multiples of ₹1,000, Max: ₹30 lakh
Current SCSS interest rate: 8.2% p.a.
Date of SCSS account opening
SCSS interest is paid quarterly

What is SCSS?

The Senior Citizens' Savings Scheme is a government-backed scheme that pays 8.2% per annum (Q2 FY 2026-27, July to September 2026), which ties with Sukanya Samriddhi as the highest small-savings rate in India. Interest is paid out every quarter as income, and the rate you get when you open the account stays locked for your full tenure.

Who Can Open an Account, and With How Much?

Anyone aged 60 or above can invest. People between 55 and 60 who have retired on superannuation or VRS can also open an account within a month of receiving their retirement benefits, and retired defence personnel qualify from age 50. You can deposit between ₹1,000 and ₹30 lakh, a limit that was doubled in Budget 2023. The account runs for 5 years and can be extended by 3 more.

How Much Income Does It Generate?

The full ₹30 lakh earns ₹61,500 every quarter, which is ₹2.46 lakh a year, at the 8.2% rate. Both spouses can invest ₹30 lakh each if both qualify, doubling the household income from the scheme. If you would prefer monthly payouts instead of quarterly, compare POMIS. For amounts beyond the limits, senior-citizen fixed deposits take the overflow.

How is SCSS Income Taxed?

The quarterly interest is fully taxable at your slab rate, and the deposit qualifies for 80C only in the old regime. Two reliefs soften this considerably. Seniors get a ₹50,000 deduction on deposit interest under Section 80TTB in the old regime. And with the new regime making income up to ₹12 lakh tax-free, many retirees living on SCSS plus pension income owe little or no tax at all. If your computed tax is nil, submit Form 15H at the start of each financial year and no TDS will be deducted.

Using SCSS in a Retirement Income Plan

A simple approach many retirees follow when planning income around SCSS: fill SCSS first because it has the highest guaranteed rate, then POMIS, then senior-citizen FDs. Stagger the FD maturities in a 1, 2 and 3-year ladder alongside SCSS, so you never have to reinvest everything at one moment's rates. And keep some growth allocation for the later years, because a 25-year retirement on fixed payouts steadily loses purchasing power to inflation.

FAQs about SCSS Calculator

SCSS pays 8.2% per annum for the July–September 2026 quarter (Q2 FY 2026-27), paid out quarterly. The rate at account opening remains fixed for your full 5-year tenure regardless of later revisions.
Between ₹1,000 and ₹30 lakh (the limit was raised from ₹15 lakh in Budget 2023). Each spouse who qualifies can hold their own account, so a senior couple can deploy up to ₹60 lakh.
Yes — quarterly interest is fully taxable at your slab rate, with TDS deducted if annual interest exceeds ₹1 lakh for senior citizens (submit Form 15H if eligible for nil tax). The deposit itself qualifies for 80C in the old regime.
Premature closure is allowed with penalties: 1.5% of the deposit if closed after 1 year, 1% after 2 years. On death, the account closes without penalty and the nominee receives the balance.
You can extend by 3 years (application within a year of maturity) at the rate prevailing on the extension date, and after one year of extension the account can be closed penalty-free. Otherwise withdraw and redeploy at current rates.
If your total tax works out to nil, submit Form 15H at the bank/post office at the start of the financial year. Otherwise TDS applies once your interest exceeds ₹1 lakh a year — reclaimable at filing if excess.