The senior citizen saving scheme (SCSS) is the government's highest paying small savings account for anyone who has turned 60, paying 8.2% a year as a cheque or credit every quarter. You can put in up to ₹30 lakh, with the rate frozen for the five year term.
You can open it at any post office or at authorised banks with the same rules everywhere. This guide covers eligibility, limits, payouts, tax, extension and the costs of leaving early. It is written by an independent site, not by India Post or a bank.
At a glance
Rate
8.2% a year, paid quarterlyWho can open
60+; retirees 55 to 60; retired defence staff 50+Deposit
₹1,000 to ₹30 lakh in multiples of ₹1,000Term
5 years, extendable by 3 yearsTax
Deposit deductible (old regime); interest taxablePayout dates
First working day of April, July, October, January
Who can open the senior citizen saving scheme
| You are | Can you open SCSS? |
|---|---|
| 60 years or older | Yes |
| 55 to 60, retired on superannuation or voluntary retirement | Yes, within one month of receiving retirement benefits, and only up to that amount |
| Retired defence personnel, 50 or older | Yes, on the same one month condition |
| An NRI or HUF | No |
A joint account is allowed only with your spouse, and the first holder's age decides eligibility. The whole deposit counts as the first holder's for the ₹30 lakh limit.
SCSS scheme in post office: a plain summary for families
Children often search for this on behalf of parents. In one line: the SCSS scheme in post office is a five year deposit for people over 60 that pays the highest government rate every three months and returns the full deposit at the end. It is sometimes written as sr citizen saving scheme, or called the senior citizen scheme in post office.
Three things are worth explaining to a parent before the visit. First, the interest goes into a savings account, so that account must be active and linked. Second, the money is locked; taking it out early has a charge. Third, the interest is taxable, so the parent may need to file a return or give Form 15H. If you help a parent with these, the account runs itself for five years.
What is senior citizen saving scheme, and the other senior options
The senior citizens saving scheme is a five year government deposit for people over 60. Many families also ask about the post office interest rate for senior citizens on other schemes: the MIS interest rate in post office for senior citizens is the regular 7.4%, and the post office interest rate senior citizen FDs earn is the regular TD rate. The Pradhan Mantri senior citizen saving scheme that people mention was a separate pension plan run by the state insurer and is closed to new buyers. A dedicated post office pension scheme for senior citizens does not exist; SCSS plus MIS is how most retirees build one. That is why SCSS is often called the best senior citizen saving scheme on offer.
How much SCSS pays every quarter
Interest is simple and paid out, so each quarter's credit is the same. At 8.2%:
| Deposit | Every quarter | Per month on average | Per year |
|---|---|---|---|
| ₹5 lakh | ₹10,250 | ₹3,417 | ₹41,000 |
| ₹10 lakh | ₹20,500 | ₹6,833 | ₹82,000 |
| ₹15 lakh | ₹30,750 | ₹10,250 | ₹1,23,000 |
| ₹30 lakh | ₹61,500 | ₹20,500 | ₹2,46,000 |
The first payout covers the part quarter after you deposit, so it is usually smaller. Try your own figure in the SCSS calculator.
Post office senior citizen scheme vs the monthly income scheme
Families often look for a post office monthly income scheme for senior citizens. There is no separate MIS for seniors; the same MIS is open to all ages. SCSS is the senior scheme, and it pays more:
| SCSS | MIS | |
|---|---|---|
| Rate | 8.2% | 7.4% |
| Paid | Quarterly | Monthly |
| Limit | ₹30 lakh per person | ₹9 lakh single, ₹15 lakh joint |
| Deduction | Yes, old regime | No |
A retired couple can hold ₹30 lakh each in SCSS and still add MIS on top. See the MIS guide and our pension options page for how people combine them.
Tax on SCSS: deduction in, tax out
Your deposit, up to ₹1.5 lakh in a year, can be claimed as a deduction under the old 80C rules, now section 123 of the new Income-tax Act, when you file under the old regime. Each payout of interest is taxed at your slab.
The post office or bank cuts TDS when SCSS interest crosses ₹1 lakh in a year for a senior citizen. Where your yearly income stays under the tax threshold, Form 15H filed each April keeps TDS away. Under the old regime there is also a separate deduction for seniors on interest earned; a tax adviser can tell you how much it covers.
Extension, maturity and closing early
After five years you can extend the account by three years, as many times as you like, by applying within one year of maturity. The rate for the extension is the one in force on the date of maturity.
| You close | Charge |
|---|---|
| Before 1 year | Interest received so far is recovered |
| After 1 year, before 2 | 1.5% of the deposit |
| After 2 years | 1% of the deposit |
| On death of the holder | No charge; interest at savings rate after death |
The full set of rules, forms and documents is on the SCSS rules page.
Documents checklist for the counter
| Document | Why it is asked for |
|---|---|
| Aadhaar | Identity and address, and to link the account |
| PAN | Needed for deposits above ₹50,000 and for TDS |
| Age proof | Birth certificate, passport or Aadhaar date of birth |
| Retirement letter | Only if you are under 60 |
| Cheque or transfer slip | For the deposit amount |
Ask for the passbook to be updated before you leave and check that the deposit date and rate are printed correctly.
How to open a senior citizen savings scheme post office account
- Take the account opening form, Aadhaar, PAN, age proof and two photos to the post office.
- If you are under 60 and retired, carry the letter showing your retirement date and benefit amount.
- Pay by cheque for amounts above ₹1 lakh.
- Link a post office savings account for the quarterly credit, and add a nominee.
Banks such as large public sector banks also open SCSS with the same rate and rules; see SCSS in banks for that route.
The trade offs to weigh
SCSS is safe and pays well, but it is not perfect. Interest is taxable, the payout is quarterly rather than monthly, the ₹30 lakh cap may be small for a large retirement corpus, and closing in the first year wipes out the interest. These points are covered one by one in disadvantages of the senior citizen savings scheme.
Everyone's retirement plan is different. If SCSS will be a large share of your money, talk to a fee based adviser about tax and how long the money needs to last.
Frequently asked questions
What rate does the senior citizen saving scheme pay today?
8.2% a year for deposits made this quarter, paid every three months and fixed for five years. Details on the SCSS interest rate page.
How much can one person put into SCSS?
₹30 lakh per person across all SCSS accounts, at post offices and banks combined.
Can I open SCSS at 58?
Only if you retired on superannuation or voluntary retirement, and you invest within one month of getting retirement benefits, up to that amount.
Is SCSS interest paid monthly?
No, it is paid quarterly. If you need monthly cash, pair it with MIS or set up a monthly transfer from your savings account.
Is the senior citizen savings scheme safe?
Yes. It is a Government of India scheme, and the government owes you the money whether you open it at a post office or a bank.
Can husband and wife open separate SCSS accounts?
Yes. If both are eligible, each can hold up to ₹30 lakh, for ₹60 lakh in total.