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Senior Citizens' Savings Scheme (SCSS)

Government of India — small savings scheme · Government & Post Office Schemes

A five-year deposit for people aged 60 and above that pays interest every quarter.

8.20% Interest rate · Notified quarterly; current for Oct–Dec 2026

As of 1 Oct 2026. Rates change — check the source before acting.

Source: National Savings Institute · confirmed via Outlook Money, 1 October 2026

Source India Post — saving schemes

www.indiapost.gov.in/banking-services/savings

The official page listing every post office savings scheme, with the current rates and rules.

How it works

Senior Citizens' Savings Scheme (SCSS) is a government schemes product from Government of India — small savings scheme, in the guaranteed category: fixed by contract. A five-year deposit for people aged 60 and above that pays interest every quarter.

Because the return type is guaranteed, the questions that matter most are: Is the rate fixed for the whole tenure, or revised during it? Who is actually promising to pay, and what happens if they don't?

  • Turning part of a retirement corpus into quarterly income
  • A low-volatility holding for money that must not fall in value

Key facts

Provider
Government of India — small savings scheme
Source
India Post — saving schemes ↗ https://www.indiapost.gov.in/banking-services/savings
Rate
8.20% Interest rate, as of 1 Oct 2026
Category
Government & Post Office Schemes
Minimum investment
₹1,000 and in multiples of ₹1,000; maximum ₹30 lakh
Tenure
5 years, extendable by 3
Payout
Quarterly
Eligibility
Individuals aged 60 or above. Also open to those retiring at 55 or above under a voluntary retirement scheme, and to retired defence personnel from age 50, within the scheme's time limits.
Getting your money back
The principal is locked for five years. Premature closure is permitted after one year with a deduction from the interest.
Protection
A sovereign liability of the Government of India.
Tax
Qualifies for a deduction under Section 80C. The quarterly interest is taxable as income and tax may be deducted at source.

What can go wrong

  • The quarterly interest is fully taxable, so the post-tax return is lower than the headline rate.
  • The five-year lock-in can be a problem if health costs arise.
  • There is a cap on how much can be deposited, so it cannot absorb a large corpus.

Before you decide anything

  • The deduction applied if you close early, at each year
  • Whether the interest is enough to live on after tax, not just before

These are questions to take to the provider, not a checklist that makes a product suitable. Whether something fits your situation is a decision only you — or an adviser you choose — can make.

Official sources

These link to the regulator or provider where the rules for this type of product are set out. They are the pages worth checking before you act, because they are the ones that get updated.

Other products in this category

The same rules and the same kind of trade-offs, described the same way.