Calculators Government Schemes
Senior Citizens' Savings Scheme Calculator
Deposit amount and your tax bracket — get the exact quarterly payout, monthly equivalent, after-tax income, year-by-year breakdown, and the precise penalty for any early withdrawal.
Annual interest of ₹82,000 exceeds the ₹50,000 TDS threshold. Submit Form 15H (senior citizens whose total income is below the taxable limit) to prevent TDS deduction at source. Senior citizens aged 75+ may qualify for simplified filing under Section 194P if all income is from one bank/post office.
Quarterly income at common deposit sizes
Year-by-year income breakdown
| Year | Annual interest | After 20% tax | Cumulative interest |
|---|---|---|---|
| Yr 1 | ₹82,000 | ₹65,600 | ₹82,000 |
| Yr 2 | ₹82,000 | ₹65,600 | ₹1,64,000 |
| Yr 3 | ₹82,000 | ₹65,600 | ₹2,46,000 |
| Yr 4 | ₹82,000 | ₹65,600 | ₹3,28,000 |
| Yr 5 | ₹82,000 | ₹65,600 | ₹4,10,000 |
| + ₹10,00,000 principal returned at maturity → Total payout: ₹14,10,000 | |||
What if you close early?
SCSS allows premature closure, but with a penalty deducted from your deposit principal. Quarterly interest already received is yours to keep — except if you close within the first year, in which case all interest paid is recovered.
After 20% tax on interest: you receive ₹11,21,200 (vs ₹13,28,000 at full maturity — a loss of ₹2,06,800).
Penalty rules at a glance (SCSS Amendment Rules, 2019)
| When you close | Penalty | Interest |
|---|---|---|
| Within 1 year | None | Recovered (clawed back) |
| After 1 yr, before 2 yrs | 1.5% of deposit | Keep all received |
| After 2 yrs | 1% of deposit | Keep all received |
What makes SCSS the right choice for retirees
SCSS is the highest-yielding low-risk income instrument available to Indian senior citizens in 2026. The combination of factors that makes it the default first stop for retirement income:
- 8.2% — higher than any comparable government scheme — SCSS beats PPF (7.1%), Post Office MIS (7.4%), and 5-year time deposits (7.5%) by a meaningful margin. It is 0.8 percentage points above POMIS and 1.1 points above PPF. On a ₹30 lakh deposit, that gap translates to ₹24,000 more per year than POMIS and ₹33,000 more than PPF.
- Quarterly cash flow — the pension supplement it's designed to be — unlike SSY and PPF where interest compounds silently inside the account, SCSS pays it to you every quarter. This makes it a direct income supplement, not a savings accumulation vehicle. Many retirees align it with their quarterly expenses.
- 80C deduction on the deposit — the one meaningful tax advantage — the principal deposit (up to ₹1.5 lakh combined with other 80C investments) qualifies for Section 80C deduction. The interest earned is taxable, but the 80C benefit on entry partially offsets the tax burden on income for the first year.
- Government-backed, no default risk — SCSS is a statutory scheme under the Government Savings Promotion Act, administered through post offices and authorised banks. There is no counterparty risk, no market-linked component, and no credit risk. The rate is fixed for the tenure (subject to quarterly review at renewal, but stable historically for multi-year stretches).
- The honest caveat: interest is taxable, unlike SSY/PPF — SCSS does not have EEE status. Every quarter's payout is income, and at a 30% slab the after-tax yield is effectively 5.74% (8.2% × 0.70). This is still competitive, but retirees in the 0% or 10% bracket get the full benefit; those in 30% should do the after-tax math (the calculator does it for you). Form 15H can prevent TDS if you qualify.
Key rules at a glance
Eligibility: who can open an SCSS account
- 60 years or above — any resident Indian on the date of account opening.
- 55–60 years (VRS/superannuation retirees) — account must be opened within 1 month of receiving retirement benefits.
- 50 years or above (defence retirees) — retired defence personnel (excluding civilian defence employees), subject to specified conditions.
- NRIs, HUFs, and minors are not eligible.
- If an account holder subsequently becomes an NRI, the account runs to maturity but no new deposits can be made.
Deposits: amounts, multiples, and joint accounts
- Minimum deposit: ₹1,000. Must be in multiples of ₹1,000. Maximum: ₹30,00,000 per individual.
- Deposit is made in a lump sum at the time of opening — you cannot add to an SCSS account after opening.
- A single depositor may open multiple SCSS accounts (at different banks/post offices), but the combined total across all accounts cannot exceed ₹30 lakh.
- Joint accounts are permitted, but only with the spouse. The full deposit counts against the primary holder's ₹30 lakh limit.
- Each spouse can independently open their own SCSS account up to ₹30 lakh — a couple can thus deploy up to ₹60 lakh across separate accounts.
Interest payment, TDS, and tax treatment
- Interest is paid quarterly on the 1st working day of April, July, October, and January.
- Interest is calculated as simple interest — it is not reinvested or compounded inside the account.
- The quarterly payout can be credited to a linked savings account (auto-credit) or collected in person.
- Interest is fully taxable as "income from other sources" at your income tax slab rate.
- TDS is deducted at source if annual SCSS interest from a single institution exceeds ₹50,000.
- Submit Form 15H (at the start of each financial year) to prevent TDS if your total annual income is below the basic exemption limit.
- The deposit qualifies for Section 80C deduction (subject to the overall ₹1.5 lakh 80C limit).
Extension after 5 years and premature closure
- Extension: At maturity (5 years), you may extend for a further 3 years. Apply within 1 year of the original maturity date. The rate during extension is fixed at the rate prevailing on the extension date.
- During extension, premature closure attracts a 1% penalty on deposit (the 1.5% tier no longer applies).
- Premature closure — before 1 year: No interest paid. Any interest already credited is recovered. You receive the deposit amount only.
- Premature closure — 1 to 2 years: 1.5% of deposit is deducted. Interest received so far is yours.
- Premature closure — after 2 years: 1% of deposit is deducted. Interest received so far is yours.
Frequently asked questions
What is the current SCSS interest rate in 2026?
8.2% per annum for Q1 FY 2026-27 (April–June 2026). This rate has been stable since Q1 FY 2023-24 (April 2023). Interest is paid out quarterly — it is not compounded inside the account. The government reviews the rate every quarter; check the Ministry of Finance gazette notification after June 2026.
How much quarterly interest does ₹30 lakh earn in SCSS?
At 8.2% on the maximum deposit of ₹30,00,000:
- Annual interest: ₹2,46,000
- Quarterly payout: ₹61,500
- Monthly equivalent (quarterly ÷ 3): ₹20,500
- Total over 5 years: ₹12,30,000
At 30% tax bracket, after-tax quarterly income: ₹43,050. Use the calculator above to adjust for your exact deposit and tax bracket.
Is SCSS interest taxable?
Yes — fully taxable as income from other sources. Unlike SSY or PPF, SCSS has no EEE or even ETE status on the interest. Every quarterly payout is taxable income. The 80C deduction applies only to the deposit principal (up to ₹1.5 lakh combined with other 80C instruments).
At a 30% slab, effective post-tax yield = 8.2% × 0.70 = 5.74%. At a 20% slab = 6.56%. At 0% (retired with no other income) = 8.2% — the full rate. The tax bracket selector in the calculator shows your exact after-tax numbers.
What are the premature closure penalties for SCSS?
Three tiers (SCSS Amendment Rules, 2019):
- Before 1 year: No interest paid. Any interest already credited is recovered. Net = deposit only.
- 1–2 years: 1.5% of deposit deducted from principal. Interest received quarterly remains yours.
- After 2 years: 1% of deposit deducted. Interest received remains yours.
The calculator's "What if you close early?" section shows the exact rupee penalty and net return for each scenario on your specific deposit amount.
What is the SCSS maximum investment limit?
₹30,00,000 (₹30 lakh) per individual across all SCSS accounts combined. A couple can each open separate SCSS accounts up to ₹30 lakh each — a household ceiling of ₹60 lakh. Joint accounts (with spouse only) count the full deposit against the primary holder's ₹30 lakh limit, not the joint holder's.
Do I need Form 15H for SCSS?
Yes, if your annual SCSS interest exceeds ₹50,000. Without Form 15H, the paying institution (post office or bank) will deduct TDS at source. Submit Form 15H at the start of each financial year if your estimated total income is below the basic exemption limit.
Senior citizens aged 75+ may qualify for Section 194P simplified filing — no ITR required if all income is from pension and interest from one bank or post office.
Can I open SCSS at a bank or only at a post office?
Both. SCSS accounts can be opened at any post office and at 28 authorised commercial banks including SBI, Bank of Baroda, Canara Bank, Punjab National Bank, HDFC Bank, ICICI Bank, Axis Bank, and others. The interest rate and all scheme rules are identical regardless of where the account is held.
How does SCSS compare to a senior citizen FD?
SCSS at 8.2% is typically 0.5–1.0 percentage points higher than the best senior citizen FD rates (SBI's senior citizen FD for 5 years is 7.5% as of mid-2026). SCSS also offers the 80C deduction on the deposit, which FDs do not (only 5-year tax-saver FDs qualify for 80C, but these are locked and non-extendable). SCSS's ₹30 lakh limit and quarterly payment frequency are the two constraints — large-corpus investors may need to split across SCSS + FD + POMIS.
Can I extend my SCSS account after 5 years?
Yes — once, for 3 years. The extension must be applied within 1 year of the original maturity date. The rate during the extension period is reset to whatever the SCSS rate is on the extension date, not the original rate. Premature closure during extension: 1% penalty on deposit.
Can defence personnel under 60 open an SCSS account?
Yes. Retired defence personnel (excluding civilian defence employees) aged 50 or above are eligible, subject to other conditions in the scheme rules. VRS retirees from civilian jobs must be at least 55 — not 50. The defence exception at 50 applies only to military/paramilitary service retirees.
Can NRIs invest in SCSS?
No. SCSS is available only to resident Indian citizens. If a depositor becomes an NRI after opening the account, the account continues to maturity but no new deposits can be added. The interest continues to be paid quarterly during this period.
Is there an SCSS account for the 80+ age group with better benefits?
SCSS does not have a separate tier for 80+ — the rate and rules are the same for all eligible depositors. However, senior citizens aged 75+ benefit from Section 194P of the Income Tax Act: if their only income is pension + interest from one bank/post office, the bank is responsible for computing tax, and no ITR filing is needed. This simplifies the annual filing burden significantly.
SCSS vs Post Office Monthly Income Scheme
The two most popular retiree income instruments — same government backing, different rates, frequency, and eligibility.
| Parameter | SCSS | POMIS |
|---|---|---|
| Interest rate (Q1 FY 2026-27) | 8.2% p.a. | 7.4% p.a. |
| Interest paid | Quarterly | Monthly |
| Tenure | 5 yrs (extendable to 8) | 5 yrs (extendable by 5) |
| Max deposit — individual | ₹30 lakh | ₹9 lakh |
| Max deposit — joint | ₹30 lakh (primary holder) | ₹15 lakh |
| 80C deduction on deposit | Yes | No |
| Interest taxable | Yes (fully) | Yes (fully) |
| TDS threshold | ₹50,000/yr | No TDS (taxed when filing) |
| Eligible investors | Senior citizens (60+, 55+ VRS, 50+ defence) | Anyone (resident adult) |
| Joint account | With spouse only | With any adult |
The verdict: SCSS wins on rate, 80C benefit, and deposit ceiling. POMIS wins on monthly payout frequency and broader eligibility. If you are a senior citizen, SCSS should come first; POMIS can absorb the remaining corpus if you exceed the ₹30 lakh SCSS ceiling or want monthly rather than quarterly payments.
SCSS interest rate history (2004–2026)
The rate has been at 8.2% since April 2023. It peaked at 9.3% in 2012-13 and hit its lowest point (7.4%) during the COVID-era cut of 2020–2023. Source: National Savings Institute (nsiindia.gov.in).
| Period | Rate (% p.a.) |
|---|---|
| FY 2004-05 to FY 2011-12 (launch rate) | 9.0% |
| FY 2012-13 | 9.3% |
| FY 2013-14 | 9.2% |
| FY 2014-15 | 9.2% |
| FY 2015-16 | 9.3% |
| FY 2016-17 Q1–Q2 | 8.6% |
| FY 2016-17 Q3–Q4 | 8.5% |
| FY 2017-18 Q1 | 8.4% |
| FY 2017-18 Q2–Q4 | 8.3% |
| FY 2018-19 Q1–Q2 | 8.3% |
| FY 2018-19 Q3–Q4 | 8.7% |
| FY 2019-20 Q1 | 8.7% |
| FY 2019-20 Q2–Q4 | 8.6% |
| FY 2020-21 | 7.4% |
| FY 2021-22 | 7.4% |
| FY 2022-23 Q1–Q2 | 7.4% |
| FY 2022-23 Q3 | 7.6% |
| FY 2022-23 Q4 | 8.0% |
| FY 2023-24 onwards | 8.2% |
| FY 2024-25 | 8.2% |
| FY 2025-26 | 8.2% |
| FY 2026-27 Q1 (Apr–Jun 2026) | 8.2% ✓ |
Next rate review: July 2026 (Q2 FY 2026-27). Source: National Savings Institute — Interest Rate history ↗
Calculator uses the official SCSS simple-interest formula (quarterly payout, no compounding; 5-year or 8-year tenure). Premature closure penalties sourced from SCSS Amendment Rules, 2019 (GSR 914E). Interest rate for Q1 FY 2026-27 confirmed from: National Savings Institute — SCSS scheme page ↗
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