Senior Citizens Savings Scheme
Calculator India 2026

SCSS is a Government of India small savings scheme launched in 2004, designed exclusively for senior citizens. It offers quarterly interest payouts, a 5-year tenure (extendable by 3 years), and tax-deductible initial deposit under Section 80C. The scheme is available at all India Post offices and most nationalised banks (SBI, PNB, Bank of India, Bank of Baroda, Canara, ICICI, HDFC, Axis, Indian Bank, IDBI, Central Bank, Union Bank). Interest rate is set quarterly by the Ministry of Finance — currently 8.2% (Q4 FY 2024-25), among the highest of fixed-income government schemes.

Three eligibility paths: (1) Indian citizens aged 60 years or above. (2) Indian citizens aged 55-60 who have retired under VRS (Voluntary Retirement Scheme) — must open within one month of receiving retirement benefits. (3) Defence personnel (excluding civilian defence employees) retiring at any age — must open within one month of retirement. NRIs are not eligible to open SCSS. HUFs (Hindu Undivided Families) are also not eligible. Joint accounts allowed only with spouse — combined family limit still ₹30 lakh.

Minimum: ₹1,000 (in multiples of ₹1,000). Maximum: ₹30 lakh per individual across all SCSS accounts (raised from ₹15 lakh in Budget 2023, effective 1 April 2023). The cap is at the individual level — a couple can open separate accounts each with ₹30L (₹60L combined household). Multiple SCSS accounts are allowed (even at different banks/post offices) but combined balance cannot exceed ₹30L. Excess deposits are returned without interest.

Quarterly — credited to your linked savings account on the first working day of April, July, October, and January. Interest is calculated on the entire deposit at the applicable rate (8.2% as of Q4 FY24-25), divided by 4 for the quarterly payment. Example: ₹30 lakh deposit at 8.2% = ₹61,500 quarterly = ₹2,46,000 annual. The SCSS rate is locked at the rate prevailing on the date of account opening for the full 5-year term — subsequent quarterly rate changes by Ministry of Finance do not retroactively affect existing accounts.

SCSS interest is fully taxable at your slab rate (added to total income). It does NOT enjoy the EEE benefit of PPF or SSY — only the EE part (initial deposit + maturity), not the interest. TDS of 10% applies if total SCSS interest in a financial year exceeds ₹50,000 (the senior citizen threshold under section 194A; raised from ₹40,000 in Budget 2024 for seniors). Form 15H can be submitted at the bank/post office to avoid TDS if your total income is below the basic exemption limit (₹3L new regime / ₹3L for senior citizens old regime). The initial deposit qualifies for Section 80C deduction up to ₹1.5 lakh (within the overall family 80C cap, old regime only).

Yes — one extension of 3 years is allowed. The extension must be applied for within 1 year of maturity using Form-4 (extension form). The extended account earns interest at the SCSS rate prevailing at the time of extension (not the original rate). Premature closure is allowed during the extension period without penalty. After the 8-year total period (5 + 3), the account closes and full balance is paid out. SCSS cannot be extended a second time — after 8 years, funds must be withdrawn or rolled into a new account if the holder remains eligible (still under ₹30L cap).

Premature closure penalties (deducted from principal): Closure before 1 year completion: no interest paid; principal returned (excluding any interest already paid). Closure between 1-2 years: 1.5% of principal deducted. Closure after 2 years: 1% of principal deducted. Closure after 5 years (during the 3-year extension): no penalty. Premature closure can be requested by the account holder or, in case of death, the nominee/legal heir (without any penalty regardless of period; full accrued interest paid up to date of death plus principal).

SCSS vs PMVVY (Pradhan Mantri Vaya Vandana Yojana — closed to new subscriptions from 31 March 2023): SCSS rate 8.2% quarterly vs PMVVY 7.4% (fixed at sale time). SCSS ₹30L cap (post-Budget 2023) vs PMVVY ₹15L. SCSS 5+3 years vs PMVVY 10 years. SCSS 60+ vs PMVVY 60+. SCSS principal is 80C deductible; PMVVY was not. SCSS vs Senior Citizen FD: bank FD rates 7.0-8.0% (varies), tenure flexible 1-10 years, no government backing (only DICGC ₹5L deposit insurance). SCSS has government backing, locked rate, and the 80C benefit.

(1) Account opening form (Form-A or Form-1 at India Post). (2) Identity proof: Aadhaar (mandatory), PAN, Passport, Voter ID. (3) Address proof: Aadhaar, utility bills, bank statement. (4) Age proof: Aadhaar (DOB), birth certificate, school leaving certificate, pension book, PAN (if shows DOB). (5) Photographs (recent passport-size). (6) For VRS retirees: VRS letter from employer. (7) For defence personnel: discharge papers. (8) Initial deposit cheque/cash/online transfer. PAN is mandatory for deposits above ₹50,000 per bank regulations. Aadhaar-PAN linking is required for all government scheme accounts.

Yes — free transfer between participating institutions. Submit a transfer application (Form-3) at the current branch. Holdings, accumulated interest history, and remaining tenure are preserved. Common reasons: relocation, switching from a bank with poor service to India Post (or vice versa), consolidation when downsizing branches. Online portal access varies by bank — most major banks now allow SCSS balance check via internet banking, though account opening typically requires a branch visit due to age/identity verification needs.