SCSS at a glance
| Interest rate | 8.2% a year (October–December 2026), fixed for the term |
|---|---|
| Interest paid | Every quarter, on the first working day of April, July, October and January |
| Who can open | 60 or older; 55–60 if retired (within a month of retirement benefits); 50 for defence retirees |
| Deposit | ₹1,000 to ₹30,00,000 in total, in multiples of ₹1,000 |
| Term | 5 years, extendable by 3 years at a time |
| Joint account | With your spouse only; the whole deposit counts against the first holder’s limit |
| Tax | Deposit deductible under 80C (old regime); interest taxable |
| Where to open | Any post office or authorised bank |
Worked example: your quarterly income
- ₹30 lakh: ₹61,500 a quarter, ₹2,46,000 a year, ₹12,30,000 over 5 years.
- ₹15 lakh: ₹30,750 a quarter, ₹1,23,000 a year.
- Couple, ₹30 lakh each: ₹1,23,000 a quarter between them.
The first payment covers only the days from your deposit to the end of that quarter, so it is smaller. Interest not collected earns nothing extra, so have it paid straight into a savings account. Try other amounts with the SCSS calculator.
Closing early and extending
- Within the first year: any interest already paid is recovered from the deposit.
- After 1 year, before 2: 1.5% of the deposit is deducted.
- After 2 years, before 5: 1% of the deposit is deducted.
- Extension: at maturity you can extend for 3 years, any number of times, by applying within a year. The extended account earns the rate in force on the maturity date, and can be closed after a year of the extension with no deduction.
- On death: the account is closed and paid to the nominee; a spouse who is a joint holder or sole nominee and is eligible can continue it.
Tax and TDS on SCSS
Under the old regime the deposit, up to ₹1.5 lakh a year, counts towards Section 80C (now Section 123 of the Income-tax Act, 2025), and senior citizens can deduct up to ₹50,000 of interest from deposits each year. Under the new regime there are no deductions. Either way the interest is taxed at your slab rate.
TDS is deducted when your interest from the post office or bank goes above ₹1 lakh in a financial year. If your total income is below the taxable limit, submit Form 15H each April to stop it.
How to open an SCSS account
Fill in the account opening form at a post office or bank, with your Aadhaar, PAN, a photograph and proof of age; if you are under 60, also proof of retirement and of the retirement benefit received. Deposits below ₹1 lakh can be made in cash; ₹1 lakh or more must be by cheque. Name a nominee when you open it.
SCSS compared with the alternatives
- Post Office Monthly Income Scheme pays 7.4% every month rather than quarterly; ₹15 lakh in a joint account gives ₹9,250 a month. Many retired couples fill SCSS first, then MIS.
- The 5-year post office time deposit pays 7.5%, compounded rather than paid out.
- Senior citizen bank FDs pay around 0.5% more than regular FDs; compare them on bank FD rates.
Frequently asked questions
What is the SCSS interest rate for October–December 2026?
8.2% a year, paid every quarter. The rate on the day you deposit is fixed for the whole 5 years, even if the rate for new deposits changes later.
How much can I invest in SCSS?
From ₹1,000 up to ₹30 lakh in total across all your SCSS accounts. A couple can each open their own account, so together they can put in up to ₹60 lakh.
How much interest will I get on ₹30 lakh in SCSS?
₹61,500 a quarter at 8.2%, or ₹2,46,000 a year, for 5 years. The ₹30 lakh is returned at maturity.
Can I open SCSS before 60?
Yes, from 55 if you retired on superannuation or took voluntary retirement, as long as you invest within one month of receiving your retirement benefits. Retired defence personnel can open one from 50.
Is TDS deducted on SCSS interest?
Only if your interest from the post office or bank goes above ₹1 lakh in the financial year. If your total income is below the taxable limit, submit Form 15H at the start of the year to stop the deduction.
How many times can SCSS be extended?
Any number of times, 3 years at a time, since the November 2023 amendment. Apply within a year of maturity or of the end of the last extension; the extended account earns the rate in force on the date it matures.
Sources
- National Savings Institute – Senior Citizens’ Savings Scheme
- Department of Economic Affairs – small savings interest rates
- India Post – savings schemes
Last checked on 6 October 2026. The rate for new deposits is reviewed every quarter; a deposit keeps the rate it was opened at.