Prepared by Finin2min Editorial Desk · Rates and rules verified 5 October 2026
The Senior Citizens Savings Scheme pays 8.2% a year, in quarterly instalments, on deposits up to ₹30 lakh for 5 years. See your quarterly income, TDS, tax, post-tax yield and what premature closure costs.
SCSS pays simple interest every quarter — it is not compounded. Quarterly interest = deposit × rate ÷ 4. On ₹30 lakh at 8.2% the post office pays ₹61,500 a quarter (₹2,46,000 a year, about ₹20,500 a month). Interest is credited on the first working day of April, July, October and January for the preceding quarter.
₹30 lakh at 8.2%: quarterly interest ₹61,500; annual ₹2,46,000; 5-year interest ₹12,30,000. If you pay 20% slab tax (20.8% with cess) the tax is about ₹51,168 a year, leaving a post-tax yield of 6.49%.
8.2% per year for the October-December 2026 quarter, paid quarterly. The rate that applies to your account is the one on the date of opening, fixed for the 5-year term.
Residents aged 60 or above; 55-60 if retired on superannuation or VRS (within one month of receiving retirement benefits and subject to limits); and 50-60 for retired defence personnel. NRIs and HUFs cannot open an account.
₹30 lakh in total across all SCSS accounts, in multiples of ₹1,000. A spouse may hold a joint account but the combined limit does not double.
Yes, 10% if interest exceeds ₹1,00,000 a year for a senior citizen. Submit Form 121 (formerly 15H) if your income is below the taxable limit.
After one year and before two: 1.5% of the deposit; after two years: 1%. Before one year there is no interest.
Rates and rules shown here were checked against the sources above on 5 October 2026. Government notifications can change a rate or rule at short notice; always confirm on the official site before you invest, file or claim.
Educational estimate only. Tax, legal, financial or regulatory treatment depends on facts and the law applicable to the relevant period. Verify the current official source or obtain professional advice before acting.
Scope: Interest income, TDS, tax, 80C and premature-closure effects for an SCSS deposit.
The calculation engine was checked against an independently written reference implementation across 1,920 SCSS input combinations, and against published figures where the scheme publishes them. Review date: 5 October 2026.
Prepared by Finin2min Editorial Desk. Educational estimate only.
Background, worked examples and the rules behind these numbers.