The senior citizen saving scheme interest rate is 8.2% a year for the October to December quarter, the same as last quarter and level with Sukanya Samriddhi as the highest small savings rate. It is paid every quarter and stays fixed for the five years of your account.
Below: what the rate gives in rupees, how it compares with post office and bank fixed deposits, and how the rate is decided.
At a glance
Rate
8.2% a yearPaid
Every quarterPer ₹1 lakh
₹2,050 a quarterFixed for
5 years (extension at the then rate)Same at banks?
Yes, identical everywhere
Senior citizen saving scheme interest rate in post office and banks
One national rate applies, fixed by the Finance Ministry. Whether you open the account at a post office or at a bank authorised to run SCSS, you get 8.2%. No branch can offer more.
| Item | Value |
|---|---|
| Rate | 8.2% a year |
| Payout | Quarterly, at the start of April, July, October and January |
| Rate type | Fixed for the deposit's term |
| Effective yield | 8.2%, since each payout leaves the account |
What 8.2% means for your monthly budget
The rate is quoted yearly, but retirees plan by the month. Divide the yearly interest by twelve to see the monthly average:
| Deposit | Per quarter | Monthly average |
|---|---|---|
| ₹2 lakh | ₹4,100 | ₹1,367 |
| ₹6 lakh | ₹12,300 | ₹4,100 |
| ₹12 lakh | ₹24,600 | ₹8,200 |
| ₹25 lakh | ₹51,250 | ₹17,083 |
The SCSS calculator does this for any amount.
Post office senior citizen interest rate compared
Seniors often compare SCSS with a fixed deposit. The post office does not add an extra rate for seniors on its time deposits, so SCSS is where the senior advantage sits.
| Option | Rate | Note |
|---|---|---|
| SCSS | 8.2% | Up to ₹30 lakh, quarterly |
| Post office 5 year FD | 7.5% | No senior extra |
| Post office MIS | 7.4% | Monthly payout |
| Bank FD for seniors | Varies | Banks usually add about 0.5% for seniors |
More on this in post office FD for senior citizens.
How the SCSS rate of interest is set and reviewed
Like other small savings schemes, the SCSS rate is linked to government bond yields of a similar term, with a wider margin than other schemes because it supports older savers. The ministry reviews it every quarter.
Over the past several years, the rate went from 7.4% down in the low yield period to 8.0% and then 8.2%, and it has not moved since. Once you deposit, later changes do not touch your account until maturity.
The rate when you extend after five years
On maturity you can extend SCSS by three years. The extended period earns whatever rate applies on the day it matures, not your original rate. If rates have fallen by then, your income falls; if they have risen, it rises.
If the rate at maturity is lower than a new SCSS account would pay, it can make sense to close and open a fresh account instead, provided you are within the ₹30 lakh limit. Check the numbers before you decide.
Interest after tax and TDS
SCSS interest is taxable. The payer cuts TDS when your SCSS interest from that post office or bank goes above ₹1 lakh in a year. Form 15H stops TDS when you owe no tax. Seniors filing under the old regime get a separate interest income deduction that can absorb part of this; the new regime has no such relief.
For deposits and other rules, see the main SCSS guide.
Frequently asked questions
Current senior citizen saving scheme rate of interest?
8.2% yearly in October to December, credited each quarter.
Is the SCSS interest rate the same in a bank and the post office?
Yes. It is a government scheme, so every bank and post office pays the same rate.
Will my SCSS rate change if rates are cut?
No. Your rate is fixed for five years from the deposit date.
Is SCSS interest higher than FD?
Yes, compared with the post office FD at up to 7.5%. Some small banks pay seniors more on FDs, but with different risk and rules.
How often is SCSS interest paid?
Every quarter, on the first working day of April, July, October and January.
Does SCSS pay interest monthly?
No. If you need monthly money, set up a standing transfer from the savings account where SCSS interest lands, or add an MIS account.