Senior Citizen Savings Scheme (SCSS) 2026: Rate & Calculator

Key Takeaways

• SCSS offers 8.2% annual interest for October–December 2026, paid quarterly.
• At this rate, ₹5 lakh earns ₹10,250 per full quarter, while ₹30 lakh earns ₹61,500, before tax.
• Eligible individuals can deposit up to ₹30 lakh across SCSS accounts through authorised banks or Post Offices.
• The initial tenure is five years, with extensions available in three-year blocks.
• Interest is taxable. Early closure attracts recovery of interest or a deduction from the deposit, depending on when you close the account.

Introduction

Senior Citizens Savings Scheme (SCSS) is a government-sponsored savings scheme for senior citizens who qualify for this scheme and want to earn interest from it. This savings scheme is valid for five years, which can be extended based on the scheme’s provisions.

This guide focuses on the interest rate of SCSS 2026, calculation of quarterly interest payment, eligibility requirements, taxation, premature closure guidelines, and latest news. In addition, this guide will make comparisons between SCSS and POMIS and senior citizen fixed deposits.

SCSS Interest Rate 2026 and Payout Dates

The interest that should be paid for the period October to December 2026 in the Post Office Senior Citizen Savings Scheme stands at 8.2%. The above-mentioned scheme will earn interest at the same rate that applies at the time the account is opened.

What is the Senior Citizen Savings Scheme?

The Senior Citizens Savings Scheme (SCSS) is a government-backed savings scheme designed for eligible senior citizens. It has a five-year maturity period and pays interest quarterly. The account can be opened through eligible Post Offices and authorised banks, subject to the scheme’s eligibility and deposit rules.

Features and Benefits of SCSS

SCSS is meant for elderly people who need to have a systematic savings scheme which gives regular income from interest.

1. Five-Year Tenure: The account matures after five years.
2. Quarterly Interest: Interest is paid every quarter.
3. Maximum Deposit: Total deposits across SCSS accounts can be up to ₹30 lakh.
4. Extension: The account can be extended in successive three-year blocks, subject to scheme rules.
5. Joint Account: An account can be opened jointly with a spouse.

The applicable interest rate is notified by the Government from time to time.

Who Is Eligible For SCSS?

SCSS is primarily available to:

• Individuals aged 60 years or above
• Retired civilian employees aged 55–60, subject to prescribed conditions
• Retired defence personnel aged 50–60, subject to applicable conditions

Eligibility will depend on the individual fulfilling the age criteria and other requirements of the scheme at the time of account opening.

How SCSS Works (Deposit to Maturity)

SCSS follows a simple five-year structure:

1. Open Account: Deposit the eligible amount with an authorised bank or Post Office.
2. Earn Interest: Interest is calculated on the deposit and paid quarterly.
3. Continue for Five Years: The account remains active for the initial five-year tenure.
4. Extend If Required: Continue in successive three-year blocks by applying within the prescribed time.
5. Receive Principal: The deposit is repaid on maturity or extension maturity, as applicable.

How to Open an SCSS Account (Post Office or Bank)

An SCSS account can be opened through an authorised Post Office or bank. The basic process is:

• Complete the SCSS account-opening form.
• Submit the required KYC and age-related documents.
• Make the deposit through an accepted payment method.
• Receive the account details and keep the deposit records safely.

The account must be opened in accordance with the eligibility and deposit rules applicable to SCSS.

Documents Required To Open An SCSS Account

To open an SCSS account, applicants generally need:

1. PAN card
2. Aadhaar or other valid identity proof
3. Age proof
4. Address proof
5. Passport-size photographs
6. Proof of retirement, where required for applicants below 60
7. Form A for opening the account

The bank or Post Office may request additional documents based on the applicant’s circumstances.

SCSS Tax Benefits and TDS

SCSS interest is taxable. Under the old tax regime, eligible resident senior citizens can claim up to ₹50,000 under Section 80TTB on interest from qualifying deposits. From 2026, TDS on eligible bank or Post Office interest for senior citizens applies above ₹1 lakh in a financial year.

Note: Section 80TTB deduction is not available under the new tax regime.

Premature Withdrawal and Extension Rules

SCSS has a five-year maturity period, with specific rules for early closure and extension.

• Before one year: The account can be closed, but interest already paid is recovered from the deposit.
• After one year but before two years: A deduction of 1.5% of the deposit applies.
• After two years but before maturity: A deduction of 1% of the deposit applies.
• Extension: Apply within one year of maturity, or the end of each extension period, to extend for another three-year block.
• During an extension: Closure before completing one year attracts a 1% deduction. After completing one year, no premature-closure deduction applies.

FAQs

About the authors

Written by • Senior content editor

Avishek Bhattacharjee

Avishek has been writing about insurance for nearly a decade, translating complex insurance concepts, products, and industry developments into clear, practical insights. His writing helps readers better understand insurance and make more informed decisions.

Reviewed by • Business head

Ashwin Chadha

Ashwin Chadha brings 15+ years of experience across life and health insurance, backed by deep industry knowledge and a strong understanding of customer needs. His expertise helps simplify complex insurance concepts and deliver clear, credible insights that empower readers to make informed decisions.