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Interest Rates

Senior Citizen Savings Scheme Interest Rate 2026: 8.2% and Key Rules

The Senior Citizen Savings Scheme pays 8.2% a year for July–September 2026, paid quarterly, on deposits of up to ₹30 lakh.

RM

Written by Rohan Mehta

Updated on 17 September 2026·5 min read

On this page9 sections
Credsir Interest Rates guide cover with a piggy bank icon

The Senior Citizen Savings Scheme (SCSS) pays 8.2% a year for the July to September 2026 quarter, credited every quarter. The rate has stayed at 8.2% since 1 April 2023, and the rate you get on the day you open the account stays fixed for its full five-year term.

SCSS interest rate and key facts

Item Details
Interest rate (Jul–Sep 2026) 8.2% a year, paid quarterly
Rate for Oct–Dec 2026 Not yet announced; the Finance Ministry usually notifies it near the end of September
Interest paid on First working day of April, July, October and January
Minimum deposit ₹1,000, in multiples of ₹1,000
Maximum deposit ₹30 lakh across all your SCSS accounts
Term 5 years, extendable in blocks of 3 years
Where to open Any post office or an authorised bank such as SBI
Tax deduction Up to ₹1.5 lakh under the old tax regime
Interest Fully taxable at your slab rate

On a ₹30 lakh deposit, 8.2% works out to ₹2,46,000 a year, or ₹61,500 each quarter, before tax.

SCSS interest rate history

The government reviews small savings rates every quarter. The National Savings Institute’s table shows how the SCSS rate has moved.

Period SCSS rate
Apr–Jun 2022 and Jul–Sep 2022 7.4%
Oct–Dec 2022 7.6%
Jan–Mar 2023 8.0%
Apr 2023 to Sep 2026 (every quarter) 8.2%

A change in the quarterly rate affects only new accounts. Your existing account keeps the rate it opened with until maturity.

Who can open an SCSS account

ItemDetails
Age 60 or aboveon the day the account is opened.
Age 55 to below 60if you retired under superannuation, VRS or special VRS.
Retired defence personnel(not civilian defence employees) from age 50, subject to the scheme’s conditions.

You may hold an account on your own or jointly with your spouse only. In a joint account the whole deposit counts against the first holder’s ₹30 lakh limit. Both spouses can also open separate accounts if each is eligible. If you are 55 to 60, your deposit cannot exceed the retirement benefits you received.

How to open an SCSS account

  1. Visit your post office or a bank branch that offers SCSS.
  2. Fill in the account opening form (Form-1 under the 2019 rules) and the nomination section.
  3. Attach your Aadhaar, PAN and a photograph. If you are between 55 and 60, add proof of retirement and of the retirement benefits received.
  4. Make the deposit in one go. Only one deposit is allowed per account, so open a second account if you want to add money later.
  5. Collect the passbook and check the rate and maturity date printed in it.
  6. Give a savings account number so the quarterly interest is credited automatically.

Unclaimed quarterly interest does not earn any further interest, so link a savings account from day one.

Maturity, extension and premature closure

The account matures after five years. Since the Senior Citizens Savings (Fourth Amendment) Scheme, 2023 took effect on 7 November 2023, you can extend it for a further three years on Form-4 within one year of maturity, and repeat this at the end of each block.

When you close the account What is deducted
Within 1 year of opening All interest already paid is recovered from the deposit
After 1 year but before 2 years 1.5% of the deposit
After 2 years but before 5 years 1% of the deposit
Extended account, after 1 year from extension No deduction

Only one withdrawal is allowed: premature closure ends the account.

Tax on SCSS deposits and interest

From tax year 2026-27, the Income-tax Act, 2025 applies. Section 123 read with Schedule XV replaces Section 80C of the 1961 Act and still lists SCSS deposits, within the ₹1.5 lakh overall cap. The deduction is available only if you choose the old regime.

The interest is taxed at your slab rate. Banks and post offices deduct TDS at 10% only when interest paid to a senior citizen crosses ₹1,00,000 in a year (section 393 of the 2025 Act). If your total income is below the taxable limit, submit the self-declaration form (Form 15H for senior citizens) to stop TDS. Estimate your deduction with our TDS on deposits calculator.

SCSS compared with other senior citizen options

Option Rate Payout Limit
SCSS 8.2% Quarterly ₹30 lakh
Post Office Monthly Income Scheme 7.4% Monthly ₹9 lakh single, ₹15 lakh joint
Post Office 5-year Time Deposit 7.5% Payable yearly No upper limit
SBI FD, senior citizen, 5–10 years 7.05% (includes the We-care premium) Monthly, quarterly or at maturity Retail deposits below ₹3 crore

Post office rates are for July to September 2026. SBI’s rate is from its card rates effective 15 December 2025. Bank rates change often, so compare current offers on our senior citizen FD rates page before you choose. A senior citizen savings account pays far less: SBI pays 2.50% on all savings balances.

Bank FDs are insured by DICGC up to ₹5 lakh per depositor per bank. SCSS is a government scheme, so the government stands behind the deposit. For more on the scheme itself, see our Senior Citizen Savings Scheme page.

Frequently asked questions

What is the current SCSS interest rate?

8.2% a year for July to September 2026, paid every quarter. The rate for October to December 2026 has not been announced yet.

What is the maximum amount in the senior citizen deposit scheme?

₹30 lakh across all your SCSS accounts. The minimum is ₹1,000.

Which banks offer the SCSS scheme?

Post offices and banks authorised by the government, including SBI and other authorised public sector and private banks. The rate is 8.2% at every one of them.

What is the senior citizen MIS interest rate?

The Post Office Monthly Income Scheme pays 7.4% a year, credited monthly, with a ₹9 lakh limit for a single account. It has no age condition; SCSS pays more but credits interest quarterly.

Is SCSS better than a senior citizen FD?

SCSS pays 8.2%, above most bank FD rates for senior citizens, but caps deposits at ₹30 lakh and charges a 1% to 1.5% penalty on early closure. FDs allow flexible terms and monthly payouts.

Can I extend my SCSS account after 5 years?

Yes. Apply on Form-4 within one year of maturity to extend it by three years, and you can extend again at the end of each block.

Is TDS deducted on SCSS interest?

Only if interest paid to you in a year exceeds ₹1,00,000. Below that, no TDS is deducted, but the interest is still taxable.

Sources

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