Calculate your SCSS quarterly payout, annual interest and total income over 5 years at the current 8.2% rate (as of Q1 FY 2026-27 (verify quarterly notification)).
How the SCSS payout works
The Senior Citizen Savings Scheme is built for retirees who want a steady, government-backed income. You deposit a lump sum, and it pays interest every quarter while returning the full principal at the end of the 5-year term:
Quarterly payout = (Deposit × rate) ÷ 4
So the annual interest is simply deposit × rate, split into four equal payouts. The principal is never touched — it comes back in full at maturity.
Worked example: ₹30 lakh at 8.2%
On the maximum deposit of ₹30,00,000 at the current 8.2% rate, the annual interest is ₹2,46,000 (₹2.46 lakh). That arrives as ₹61,500 every quarter — roughly ₹20,500 a month of income. Over the full 5-year term you receive ₹12,30,000 in interest, and your ₹30 lakh principal is returned at maturity.
SCSS rules at a glance
Eligibility starts at age 60 (earlier for certain retirees and defence personnel). The minimum deposit is ₹1,000 and the maximum is ₹30 lakh per individual — a couple can hold separate accounts. The term is 5 years, extendable once by 3 years. Premature closure is allowed with a penalty of 1–1.5% of the deposit. Interest is paid quarterly into your linked savings account.
Tax and how it compares
The SCSS deposit qualifies for a Section 80C deduction (old regime), but the quarterly interest is fully taxable at your slab and attracts TDS above the senior-citizen threshold. Even so, at 8.2% it is one of the highest-paying guaranteed schemes for seniors. For amounts beyond the ₹30 lakh cap, retirees often add a senior-citizen FD or the Post Office Monthly Income Scheme; compare all of them on our post office schemes page, and check the tax impact with our income tax calculator.
Frequently Asked Questions
Who is eligible for the Senior Citizen Savings Scheme?
Individuals aged 60 and above can open an SCSS account. Those aged 55–60 who have retired under a voluntary or superannuation scheme may open one within three months of receiving retirement benefits, and defence retirees can open it from age 50. It is available at post offices and most banks.
How much interest does SCSS pay?
The current SCSS rate is 8.2% per annum (as of Q1 FY 2026-27 (verify quarterly notification)), among the highest of all small-savings schemes. Interest is paid quarterly, giving retirees a regular income stream. The rate is fixed for your account at the time of opening for the full term; the government reviews the headline rate every quarter for new accounts.
How is the SCSS quarterly payout calculated?
Annual interest = deposit × rate, divided into four equal quarterly payouts. On the maximum ₹30,00,000 deposit at 8.2%, the annual interest is ₹2,46,000, paid as ₹61,500 every quarter (about ₹20,500 a month of income). The principal is returned in full at maturity.
What is the maximum I can invest in SCSS?
The maximum deposit is ₹30,00,000 (₹30 lakh) per individual, raised from ₹15 lakh in the 2023 Budget. The minimum is ₹1,000. A married couple can open separate accounts, effectively doubling the household limit to ₹60 lakh.
What is the SCSS tenure and can it be extended?
The scheme runs for 5 years. At maturity you can extend it by a further 3 years by submitting the extension form within one year of maturity; the extended account earns the rate prevailing on the maturity date. Premature closure is allowed with a penalty (1–1.5% of the deposit depending on when you close).
Is SCSS interest taxable?
Yes — SCSS interest is fully taxable at your slab rate. The deposit qualifies for a Section 80C deduction (up to ₹1.5 lakh, old regime), but the quarterly interest is taxable income and TDS applies if total interest crosses ₹50,000 a year (₹1,00,000 for senior citizens, FY 2025-26). Estimate your tax with our
income tax calculator.
SCSS vs FD vs Post Office MIS for retirees?
SCSS usually offers the highest rate of the three and pays quarterly, but is capped at ₹30 lakh and needs you to be a senior citizen. A
senior-citizen FD is more flexible on tenure and amount. The Post Office Monthly Income Scheme pays monthly instead of quarterly. Many retirees use a mix; see all options on our
post office schemes page.
Estimates are for information and education only — not financial, tax or investment advice. Verify current rates and rules with official sources.