SCSS Calculator
Calculate quarterly and total interest from the Senior Citizen Savings Scheme. Free, privacy-first — inputs never leave your browser.
Details
Result
Quarterly Interest
₹30,750
Total Interest
₹6,15,000
Maturity
₹15,00,000
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
What is the Senior Citizen Savings Scheme?
The Senior Citizen Savings Scheme (SCSS) is a small-savings instrument notified by the Ministry of Finance and operated through post offices and authorised banks. It is designed for retired residents seeking steady quarterly income with sovereign safety. The scheme rules and current interest rate (8.2% p.a. for the Q1 FY 2026-27 quarter, among the highest of all small savings) are published at nsiindia.gov.in.
Eligibility and limits
- Resident individual aged 60 years or more.
- Aged 55-60 if retired under Voluntary Retirement Scheme (within 3 months of retirement).
- Defence retirees eligible from age 50.
- Maximum deposit: ₹30 lakh (hiked from ₹15L in Budget 2023).
- Multiple accounts allowed subject to aggregate cap.
- NRIs and HUFs are not eligible.
How SCSS interest is calculated
Interest is calculated on a simple-interest basis, credited and paid quarterly on the 1st of April, July, October, and January. There is no compounding:
Quarterly payout = Principal × rate ÷ 4
Worked example — ₹30 lakh deposit at 8.2%
Principal ₹30,00,000 at 8.2% = ₹2,46,000 of interest per year, paid as ₹61,500 every quarter. Over the 5-year tenure you collect ₹12,30,000 in interest. Interest is fully taxable at slab rates and TDS is deducted if aggregate interest exceeds ₹50,000/yr (unless Form 15H is submitted).
Regulatory and tax context
- Section 80C: deposits qualify up to ₹1.5 lakh (old regime only).
- Tenure: 5 years; extendable by 3 years once, with rate applicable on date of maturity.
- Premature closure: 1.5% penalty before year 2, 1% between years 2-5.
- TDS: under section 194A at 10% if interest > ₹50,000/year for seniors.
- Nomination: mandatory at opening.
Common mistakes
- Assuming interest is tax-free. SCSS is only T-E-T — deposits have 80C benefit, interest and maturity are taxable.
- Opening jointly with a non-spouse. Only spouse joint-holders are allowed, and the first holder's age governs eligibility.
- Skipping extension paperwork. Extension must be claimed within 1 year of maturity via Form B — otherwise the account is closed automatically.
- Ignoring the ₹30L aggregate cap. Multiple accounts across branches still count against the single limit.
- Not submitting 15H. Seniors under the basic exemption limit can avoid TDS by filing Form 15H each year.
Related calculators and reading
See also: FD Calculator, PPF Calculator, Retirement Calculator, SWP Calculator, glossary: Section 80C.
Common questions about SCSS
What is the Senior Citizen Savings Scheme (SCSS)?+
SCSS is a government-backed deposit scheme for Indian residents aged 60 and above (55+ for VRS retirees within 3 months of retirement; 50+ for defence services retirees). Current interest: 8.2% p.a. payable quarterly (Q1 FY 2026-27). Tenure: 5 years, extendable once by 3 years. It's one of the highest-yielding risk-free instruments available to seniors in India.
How much can I invest in SCSS?+
Maximum ₹30 lakh per individual (raised from ₹15 lakh in Budget 2023). Minimum ₹1,000, in multiples of ₹1,000. Joint account (with spouse only) is allowed, but the ₹30L cap is per individual — a couple can deposit up to ₹60 lakh combined in separate accounts. Multiple accounts permitted as long as total stays within the limit. Available at post offices and most authorised banks.
How is SCSS interest taxed?+
Quarterly interest is fully taxable at the depositor's slab rate — added to Income from Other Sources. TDS at 10% applies if annual interest crosses ₹50,000 per account (post office/bank threshold). Senior citizens can submit Form 15H if total income is below the exempt limit to avoid TDS. Deposits up to ₹1.5 lakh qualify for 80C deduction under the OLD regime.
When does SCSS interest get credited?+
Interest is paid quarterly — typically on April 1, July 1, October 1, and January 1 — directly to the depositor's linked savings account (no reinvestment option). For many retirees, SCSS effectively functions as a monthly/quarterly pension. ₹30 lakh at 8.2% generates ₹61,500 quarterly (~₹20,500/month) pre-tax.
Can I withdraw SCSS before 5 years?+
Yes, but with penalty. Within 1 year: no interest allowed (only principal returned). Between 1-2 years: 1.5% of deposit deducted. After 2 years: 1% of deposit deducted. On death of the holder, the account is closed and full principal + accrued interest is paid to the nominee/legal heir without penalty.
SCSS vs PMVVY vs Bank FD for seniors?+
SCSS at 8.2% wins most comparisons. PMVVY (Pradhan Mantri Vaya Vandana Yojana) closed to new subscribers in March 2023. Bank senior FDs pay 7%-7.5%. SCSS offers: highest rate, government backing, ₹30L cap, quarterly payout, 80C benefit. Diversify across SCSS + POMIS (Post Office Monthly Income Scheme, 7.4% p.a.) + senior FD for fixed income portfolio totalling ~₹50-60 lakh.