Senior Citizen Savings Scheme (SCSS) Calculator
Estimate your quarterly interest income and maturity value under the Government SCSS scheme.
Payout Breakdown
SCSS vs. Traditional Savings Methods
Understand how SCSS compares to standard Fixed Deposits and Senior Savings Schemes.
| Feature | SCSS (Govt Scheme) | Bank Fixed Deposit (FD) | Post Office MIS (POMIS) |
|---|---|---|---|
| Interest Rate (approx) | 8.20% p.a. | ~7.25% - 7.75% p.a. | ~7.40% p.a. |
| Payout Frequency | Quarterly | Monthly / Quarterly / Maturity | Monthly |
| Max Limit | ₹30 Lakhs | No Limit | ₹9 Lakhs (Single) / ₹15 Lakhs (Joint) |
| Tax Benefits (Sec 80C) | Yes (Up to ₹1.5L) | Only on 5-Year Tax Saver FDs | No |
| Safety | Sovereign (Govt backed) | DICGC Covered up to ₹5 Lakhs | Sovereign (Govt backed) |
Senior Citizen Savings Scheme (SCSS) Guide
The Senior Citizen Savings Scheme (SCSS) is a government-sponsored retirement savings program launched in India. Tailored specifically for seniors, it offers an attractive combination of regular interest payouts, sovereign safety, and tax benefits, making it an ideal choice for retirees looking for steady income.
Eligibility Criteria
You can open an SCSS account at any authorized bank or post office branch if you meet one of the following criteria:
- Individuals aged 60 years or older.
- Retirees aged 55 to 60 years who have opted for Voluntary Retirement Scheme (VRS) or Superannuation, provided the account is opened within 1 month of receiving retirement benefits.
- Retired Defense Personnel aged 50 years or older.
Key Features at a Glance
- Fixed Interest Rate: The current interest rate is 8.2% per annum. Once you invest, your rate remains locked and fixed for the entire 5-year tenure.
- Quarterly Interest Credits: Interest is paid out quarterly on the first working day of April, July, October, and January. It is credited directly to your bank account.
- Deposit Limits: The minimum deposit is ₹1,000, and the maximum deposit limit is ₹30 Lakhs per individual. Spouses can open individual accounts up to ₹30 Lakhs each.
- Tenure: The scheme has a maturity period of 5 years. Upon maturity, the account can be extended for an additional block of 3 years.
How the SCSS Interest is Calculated
Unlike Fixed Deposits, SCSS interest is **not compounded**. Instead, simple interest is computed on your principal and paid out every quarter. The calculation is:
For example, if you deposit ₹10 Lakhs at 8.2% p.a.:
- Quarterly Interest: ₹10,00,000 × 0.082 × 0.25 = ₹20,500 credited every quarter.
- Annual Income: ₹20,500 × 4 = ₹82,000 per year.
- Total Interest over 5 Years: ₹82,000 × 5 = ₹4,10,000.
Tax Deductions (Section 80C) and TDS
Investments made in SCSS are eligible for a tax deduction of up to ₹1.5 Lakhs per year under Section 80C of the Income Tax Act. However, the quarterly interest received is fully taxable as per your individual tax slab.
Tax Deducted at Source (TDS) will be deducted at 10% by the bank or post office if your total interest income across SCSS accounts exceeds ₹50,000 in a financial year. To prevent TDS deduction (if your total taxable income is below the exemption limit), eligible depositors must submit Form 15H at the start of each financial year.