The Senior Citizens’ Savings Scheme (SCSS) is one of the best guaranteed-income options for retirees: 8.2% a year (July–September 2026), paid every quarter, locked for 5 years.
Key takeaways
- Open to individuals aged 60+ (and eligible retirees aged 55/50–60 within 3 months of receiving retirement benefits).
- Maximum ₹30 lakh per person; a couple can invest up to ₹60 lakh in separate accounts.
- Interest is taxable; the deposit qualifies for the ₹1.5 lakh deduction (old regime).
- Extendable in 3-year blocks at the rate prevailing on maturity.
Income you can expect
| Deposit | Quarterly | Yearly |
|---|---|---|
| ₹10 lakh | ₹20,500 | ₹82,000 |
| ₹15 lakh | ₹30,750 | ₹1,23,000 |
| ₹30 lakh | ₹61,500 | ₹2,46,000 |
Building a retirement-income ladder
| Layer | Product | Why |
|---|---|---|
| 1 | SCSS (up to ₹30 lakh each) | Highest guaranteed rate, quarterly |
| 2 | POMIS (up to ₹9 lakh / ₹15 lakh joint) | Monthly income at 7.4% |
| 3 | Bank FDs (senior rates, laddered) | Flexibility, DICGC cover |
| 4 | Balanced/hybrid funds via SWP | Inflation protection |
Tax and TDS
- Interest is added to income.
- TDS applies if interest exceeds ₹1 lakh in a year for senior citizens; submit Form 15H if your tax is nil.
- Old regime: Section 80TTB allows up to ₹50,000 deduction on deposit interest.
Premature closure
| When | Deduction |
|---|---|
| Before 1 year | Interest paid is recovered |
| 1–2 years | 1.5% of deposit |
| After 2 years | 1% of deposit |
Your action checklist
- Decide the goal and horizon first — girl child, retirement income, tax saving or a fixed 5-year goal.
- Check the current quarter's notified rate and whether it is locked for your scheme.
- Open the account at a post office or authorised bank with Aadhaar and PAN.
- Set a yearly reminder to deposit before 5 April (PPF/SSY) and to meet the minimum deposit.
- Add nominees and keep passbooks/e-statements safe.
FAQs
Can I open SCSS jointly?
Only with your spouse; the deposit is attributed to the first holder.
Is the rate fixed?
Yes, for the full 5-year term at the rate on the deposit date.
