What is the Senior Citizens’ Savings Scheme (SCSS)?
The Senior Citizens’ Savings Scheme (SCSS) is a government-backed savings scheme for people aged 60 and above. You make a one-time deposit at a post office or authorised bank and receive interest every quarter for 5 years, at a rate that is fixed on the date of deposit. The current rate is 8.2% a year, one of the highest among small savings schemes, which makes SCSS a favourite for retirees who want regular, safe income.
This SCSS calculator shows your quarterly payout, monthly equivalent, total interest and the amount returned at maturity.
SCSS Rules and Eligibility
| Feature | Rule |
|---|---|
| Eligibility | Age 60 or more. Retirees aged 55 to 60 (under superannuation or VRS) can invest within one month of receiving retirement benefits. Retired defence personnel from age 50 |
| Deposit | Minimum ₹1,000, in multiples of ₹1,000. Maximum ₹30 lakh across all SCSS accounts |
| Tenure | 5 years; can be extended once for 3 years |
| Interest rate | 8.2% a year, fixed for the whole tenure from the date of deposit |
| Interest payout | Quarterly, on the first working day of April, July, October and January |
| Joint account | Allowed with a spouse |
How SCSS Interest is Calculated
Total interest = Quarterly interest × 20 quarters
SCSS pays simple interest every quarter and returns the principal at maturity, so there is no compounding inside the scheme. To benefit from compounding you can invest the quarterly payouts in a recurring deposit or a mutual fund SIP.
| Deposit | Quarterly payout | Monthly equivalent | Interest in 5 years | Maturity |
|---|---|---|---|---|
| ₹5,00,000 | ₹10,250 | ₹3,417 | ₹2,05,000 | ₹7,05,000 |
| ₹10,00,000 | ₹20,500 | ₹6,833 | ₹4,10,000 | ₹14,10,000 |
| ₹15,00,000 | ₹30,750 | ₹10,250 | ₹6,15,000 | ₹21,15,000 |
| ₹30,00,000 | ₹61,500 | ₹20,500 | ₹12,30,000 | ₹42,30,000 |
The figures above assume 8.2%. Interest is paid quarterly, so the monthly figure is only an average to help you budget.
SCSS Tax Treatment
- The deposit qualifies for a deduction under Section 80C up to ₹1.5 lakh (old tax regime).
- Interest is taxable as per your slab. TDS of 10% applies if SCSS interest crosses ₹1 lakh in a year. Submit Form 15H if your income is below the taxable limit.
- Senior citizens also get a higher basic exemption limit and a separate deduction on interest income (Section 80TTB) in the old regime.
Premature Closure and Extension
- Closing within the first year: no interest is paid, and any interest paid is recovered from the principal.
- Closing after 1 year but before 2 years: 1.5% of the deposit is deducted.
- Closing after 2 years: 1% of the deposit is deducted.
- On the death of the depositor, the account can be closed without penalty.
How to Use This SCSS Calculator
- Enter the deposit amount (up to ₹30 lakh).
- Check the interest rate. It starts at the current SCSS rate of 8.2%.
- Read the quarterly payout and total interest. Save a report with Preview & Save.
Compare SCSS with a bank FD using the FD calculator, and see how NPS annuity income compares.
Planning Retirement Income with SCSS
A ₹30 lakh deposit at 8.2% pays about ₹61,500 every quarter. Many retirees combine SCSS with a bank FD for the rest of their savings, a NPS annuity and EPS pension to create a steady monthly income. Because SCSS interest is paid quarterly, you can set up a small monthly withdrawal plan from a savings account or invest part of each payout in a liquid fund.
- Open the account within 1 month of retirement if you are aged 55 to 60.
- Stagger deposits only if you hit the ₹30 lakh limit; the cap is per person.
- Use Form 15H to avoid TDS if your taxable income is below the limit.