The Senior Citizens Savings Scheme (SCSS) is a Central Government savings scheme made specially for citizens aged 60 and above, to give them a regular income after retirement. It is offered through post offices and authorised banks. For the October to December 2026 quarter, SCSS pays interest at 8.2% a year — one of the highest rates among all small savings schemes. The interest is credited every quarter, suiting retirees who want a fixed income every three months.
Interest rate and quarterly income
SCSS pays interest at 8.2% a year, credited every quarter. The rate that applies when the account is opened stays fixed for the full 5-year term — later rate changes do not affect an existing account. A deposit of ₹30 lakh earns about ₹61,500 every quarter, or about ₹2.46 lakh a year. The interest is taxable; the deposit qualifies for a Section 80C deduction in the old tax regime.
Who can open an account
Any resident Indian aged 60 years or above can open an SCSS account. Employees aged 55 to 60 who retired on superannuation or voluntary retirement (VRS) can also open one — they must open the account within one month of receiving their retirement benefits, and the deposit cannot exceed the retirement benefits received. For retired defence services personnel, the age limit starts at 50 years. NRIs and HUFs cannot open an account under this scheme.
Deposit limits and account rules
In SCSS, you can deposit a minimum of ₹1,000 and a maximum of ₹30 lakh. Deposits must be in multiples of ₹1,000, and the limit applies across all SCSS accounts held by one person. A joint account can be opened only with a spouse — the full deposit counts towards the first holder’s limit. More than one SCSS account can be held, but the total deposit cannot exceed ₹30 lakh.
Term and premature closure
An SCSS account runs for 5 years. On maturity, it can be extended once for 3 more years — the extended account earns the rate in force on the date of extension. The account can also be closed before maturity, but prescribed conditions and deductions apply, so ask the post office or bank about the rules before closing. On maturity, the full deposit is returned to the account holder, while the quarterly interest instalments are paid separately through the term.
Frequently Asked Questions
Q1: What is the SCSS interest rate for October–December 2026?
A: 8.2% a year — this rate applies from 1 October to 31 December 2026 and is fixed when the account is opened.
Q2: How much can I deposit in SCSS?
A: A minimum of ₹1,000 and a maximum of ₹30 lakh — the limit applies across all SCSS accounts held by one person.
Q3: Who can open an SCSS account?
A: Any resident Indian aged 60 or above — retired employees aged 55 to 60 and retired defence personnel aged 50 and above can also open one under prescribed conditions.
Q4: What is the SCSS term and when is interest paid?
A: The term is 5 years, extendable once by 3 years — interest is credited to the account every quarter.
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