Senior Citizen Savings Scheme (SCSS) – Interest Rate & Benefits
Written by Aruna Sane
Last reviewed: 15 September 2026 | Senior Citizen Information Researcher
The Senior Citizen Savings Scheme (SCSS) is one of the most popular government-backed savings instruments for retirees in India. Offered through post offices and authorised banks, SCSS provides a guaranteed return with quarterly interest payouts, making it an ideal choice for senior citizens seeking safe, steady income.
This guide covers the current interest rate, investment limits, eligibility, tax benefits, and step-by-step process to open an SCSS account in 2026.
Current SCSS Interest Rate (2026)
The SCSS interest rate is revised quarterly by the Government of India based on government securities yields:
| Quarter | Interest Rate | Effective Period |
|---|---|---|
| Q1 FY 2026-27 | 8.2% per annum | April – June 2026 |
| Q4 FY 2025-26 | 8.2% per annum | January – March 2026 |
| Q3 FY 2025-26 | 8.2% per annum | October – December 2025 |
The interest is compounded quarterly and paid out to the account holder's savings account.
Key Features of SCSS
- Interest Rate: 8.2% per annum (subject to quarterly revision)
- Maximum Investment: ₹30,00,000 (thirty lakh rupees)
- Minimum Investment: ₹1,000
- Tenure: 5 years (extendable by 3 more years)
- Interest Payment: Quarterly (credited to linked savings account)
- Tax Benefit: Up to ₹1,50,000 under Section 80C
- Account Type: Single or joint (with spouse)
- Where to Open: Post offices, nationalised banks, SBI, and authorised private banks
Eligibility Criteria
| Criteria | Requirement |
|---|---|
| Age | 60 years and above (or 55+ if retired) |
| Citizenship | Indian resident |
| NRI/PIO | Not eligible |
| HUF | Not eligible |
| Retired Military | Eligible at 50 years with specific conditions |
Investment Limits
The maximum amount you can invest in SCSS is ₹30 lakh. Here is a breakdown of how this works for individuals and joint accounts:
- Single Account: Maximum ₹30 lakh
- Joint Account (with spouse): Maximum ₹30 lakh (spouse's contribution does not count separately)
- Multiple Accounts: You can hold only one SCSS account. However, if you have multiple post office or bank accounts, you can open SCSS at only one institution.
Tax Benefits
- Section 80C Deduction: Up to ₹1,50,000 per year on the amount invested
- Tax on Interest: Interest earned is fully taxable. If interest exceeds ₹50,000 per year (for senior citizens), TDS is deducted at 10%.
- No TDS: If you submit Form 15H (for seniors whose total income is below taxable limit), TDS can be avoided.
How to Open an SCSS Account
At Post Office
- Visit your nearest post office with a savings account.
- Collect the SCSS application form (Form A).
- Fill in the form with personal details, Aadhaar, PAN, and nominee information.
- Attach two passport-size photographs.
- Submit a cheque or cash for the investment amount.
- The account will be opened and passbook issued.
At Bank
- Visit an authorised bank (SBI, PNB, Bank of Baroda, etc.).
- Ask for the SCSS account opening form.
- Fill in the form and submit with KYC documents (Aadhaar, PAN, address proof).
- Link your existing savings account for interest credit.
- Deposit the investment amount via cheque or NEFT/RTGS.
- Receive your passbook with account details.
Documents Required
- Identity Proof: Aadhaar Card, PAN Card, Passport
- Address Proof: Aadhaar, utility bill, rent agreement
- Age Proof: Birth certificate, 10th marksheet, Aadhaar, passport
- Photographs: 2 recent passport-size photos
- PAN Card: Mandatory for investments above ₹50,000
SCSS vs Other Savings Schemes
| Feature | SCSS | PPF | FD (5-year) | NSC |
|---|---|---|---|---|
| Interest Rate | 8.2% | 7.1% | 7.0–7.5% | 7.7% |
| Max Investment | ₹30 lakh | ₹1.5 lakh/year | No limit | No limit |
| Tenure | 5 years | 15 years | 5 years | 5 years |
| Interest Payout | Quarterly | At maturity | Quarterly/Monthly | At maturity |
| Tax Benefit 80C | Yes | Yes | Yes | Yes |
| Age Requirement | 60+ | None | None | None |
Extension and Premature Withdrawal
- Extension: After 5 years, you can extend the account for 3 more years. The interest rate prevailing at the time of extension applies.
- Premature Closure: Allowed after 1 year with a penalty of 1.5% of the deposited amount. Before 1 year, the account cannot be closed except in cases of death.
- After 2 years: Premature closure incurs a penalty of 1% of the deposited amount.
Frequently Asked Questions
What is the current SCSS interest rate?
The current SCSS interest rate is 8.2% per annum (Q1 FY 2026-27). It is revised quarterly by the government.
Can I open multiple SCSS accounts?
No. You can hold only one SCSS account at any time. However, you can open it at either a post office or a bank (not both).
Is SCSS interest taxable?
Yes, the interest earned is fully taxable. However, you can avoid TDS by submitting Form 15H if your total income is below the taxable limit.
Can NRI open an SCSS account?
No. Non-resident Indians (NRIs) and Persons of Indian Origin (PIOs) are not eligible to open SCSS accounts.
What happens if I invest more than ₹30 lakh?
Any amount deposited above ₹30 lakh will not earn interest and will be refunded to your savings account. Ensure you do not exceed the limit.
Can I open a joint SCSS account with my non-senior spouse?
Yes. You can open a joint account with your spouse, but the primary account holder must be 60+ years. The spouse's age does not matter for joint accounts.