Senior Citizens Savings Scheme: rules and a Rs 10 lakh example
Many retired people and their families want a steady, low-risk way to receive interest every few months. The Senior Citizens Savings Scheme, or SCSS, is a government small savings scheme built for exactly that. This guide explains the main rules from the official pages, then works through a simple example with round numbers. We opened both pages on 9 November 2026.
The main rules
The National Savings Institute (NSI) SCSS page sets out the features:
- Who can open it: an individual aged 60 years or above on the date of opening. A person aged 55 to 59 who has retired under superannuation, voluntary retirement or special voluntary retirement can also open one, subject to conditions. Retired defence personnel may open an account from age 50, subject to other conditions.
- Deposit: the minimum is Rs 1,000 in multiples of Rs 1,000, and the maximum is Rs 30 lakh.
- Term: the account can be closed after five years from the date of opening, and the depositor may extend it for a further three years.
- Interest dates: interest is payable on the first working day of April, July, October and January.
- Early closure: allowed, but subject to conditions, so ask the post office or bank for the exact rule before you open the account.
- Tax: the page says deposits qualify for deduction under Section 80C of the Income Tax Act. Tax rules change and depend on your situation, so check the Income Tax Department's guidance or ask a tax professional.
The interest rate
The India Post savings page currently lists the SCSS rate as 8.2% per annum. The government reviews small savings rates every quarter, so the rate can differ when you open your account. Always check the current rate on the India Post or NSI page on the day you deposit.
A worked example
Take a deposit of Rs 10,00,000, which is inside the Rs 30 lakh limit. For illustration, assume the rate is 8.2% per annum and stays there. These are round numbers, not a promise.
Interest for one year is Rs 10,00,000 x 8.2 / 100 = Rs 82,000. Paid quarterly, that is Rs 82,000 / 4 = Rs 20,500 each quarter. Over the basic five-year term the total interest would be Rs 4,10,000, and the Rs 10,00,000 deposit comes back at the end. We checked this with a calculation.
Two real-life differences matter. The first payment covers the days from your deposit date to the end of that quarter, so it is usually smaller or larger than Rs 20,500. And because the interest is paid out rather than added to the deposit, it does not compound. If you reinvest each payout yourself, your total would be different, and the Gunaka FD payout calculator can help you compare the two.
Next step
Before you open an account, write down your monthly expenses and see how much of them the quarterly interest would cover. Then check the rate and rules with your nearest post office or authorised bank. Gunaka gives estimates, not financial advice.
More guides
- FD monthly payout or cumulative: a Rs 10 lakh example
- Pensioners: Digital Life Certificate campaign runs until 30 November 2026
- How your yearly increment works in the pay matrix, with 63% DA