Senior Citizen Saving Scheme
Senior Citizen Saving Scheme is one of the highest interest paying small savings schemes designed for senior citizens. This is a scheme supported by the central government, hence it is considered a low-risk investment option.
The government reviews the interest rates of small savings schemes, including SCSS, every quarter. In the review meeting held in March 2026, the government did not change the interest rate of any small savings scheme for the April-June 2026 quarter.
SCSS interest rate in 2026
SCSS is getting 8.2% annual interest for the quarter April-June 2026. The duration of this scheme is 5 years, which can be extended for further 3 years. If a senior citizen invests Rs 30 lakh in SCSS, then at the interest rate of 8.2%, he will get interest of Rs 61,500 every quarter. Since interest in SCSS is paid every three months, the investor will get this amount four times a year. In this way, the total interest income in one year will be Rs 2,46,000. The maturity period of SCSS is 5 years, so even without increasing the account, the investor can get this income for 5 consecutive years.
Mathematics of annual income of Rs 2.46 lakh
- Investment amount Rs 30 lakh
- interest rate 8.2%
- Quarterly interest Rs 61,500
- Annual interest Rs 2,46,000
What is the deposit limit in SCSS?
A minimum of Rs 1,000 can be deposited in SCSS, while the maximum limit is Rs 30 lakh. This limit applies to all SCSS accounts of an individual combined. Both husband and wife can open separate or joint accounts. If both are eligible, they can deposit up to Rs 30 lakh in their respective accounts. If a person deposits more money than the prescribed limit, the excess amount will be returned. Interest will be given on this additional amount as per post office savings account.
What benefit is available in tax?
The interest received from SCSS is fully taxable. However, senior citizens can claim a deduction of up to Rs 50,000 under Section 80TTB of the Income Tax Act.
When can SCSS account be closed?
SCSS account can be closed after 5 years from the date of opening. If the account has been extended for 3 years, the account can be closed even after the completion of that period. If the account holder dies, thereafter the account will receive interest as per Post Office Savings Account, until the account is completely closed.
How to increase SCSS account?
After completion of 5 years, SCSS account can be extended for further 3 years. For this, application has to be made within one year from the date of maturity.
