What is Senior Citizen Savings Scheme (SCSS)?
The Senior Citizen Savings Scheme (SCSS) is a government-backed savings instrument designed specifically for Indian citizens aged 60 years and above. It offers one of the highest interest rates among small savings schemes, currently at 8.2% per annum (Q1 2024-25), with quarterly interest payouts.
Key Features of SCSS
- Eligibility: Indian citizens aged 60+ (55+ for VRS/retired defense personnel)
- Maximum Deposit: Rs.30 Lakhs per individual
- Tenure: 5 years (extendable by 3 years)
- Interest Rate: 8.2% p.a. (revised quarterly by government)
- Interest Payout: Quarterly (1st April, July, October, January)
- Tax Benefit: Deposits qualify for Section 80C deduction (up to Rs.1.5 Lakh)
Why Use Our SCSS Calculator?
- Quarterly Interest Breakdown: See exactly how much you will receive every quarter
- Extended Tenure Support: Calculate returns for 5, 6, 7, or 8 year periods
- Tax Benefit Estimation: Understand your Section 80C savings
- Visual Charts: Interactive growth projection charts
- Free and Private: All calculations happen in your browser
SCSS Interest Calculation Formula
SCSS uses simple interest calculation with quarterly payouts:
Quarterly Interest = Principal x (Annual Rate / 4) / 100
Total Interest = Quarterly Interest x Number of Quarters
Maturity Value = Principal + Total Interest
Example Calculation
Scenario: Deposit Rs.15 Lakhs at 8.2% for 5 years
- Quarterly Interest: Rs.30,750 (Rs.15L x 8.2% / 4)
- Annual Interest: Rs.1,23,000
- Total Interest (5 years): Rs.6,15,000
- Maturity Value: Rs.21,15,000
SCSS vs Other Senior Citizen Investment Options
- SCSS (8.2%): Highest rate, government-backed, quarterly payouts
- Post Office MIS (7.4%): Lower rate, monthly payouts
- Bank FD (7-7.5%): Flexible tenure, varies by bank
- RBI Floating Rate Bonds (8.05%): Linked to NSC, semi-annual interest
Frequently Asked Questions
What is the current SCSS interest rate?
The current SCSS interest rate is 8.2% per annum (as of Q1 2024-25). The rate is revised quarterly by the Government of India and is typically among the highest offered by small savings schemes.
Can I extend my SCSS account after 5 years?
Yes, SCSS accounts can be extended once for an additional 3 years within one year of maturity. The extended account will earn interest at the rate prevailing on the date of extension. This means you can hold SCSS for up to 8 years total.
Is SCSS interest taxable?
Yes, interest earned on SCSS is fully taxable as per your income tax slab. TDS is deducted if total interest exceeds Rs.50,000 in a financial year. However, the principal deposit qualifies for Section 80C deduction up to Rs.1.5 Lakh.
Can I withdraw SCSS before maturity?
Yes, premature withdrawal is allowed after 1 year. A penalty of 1.5% is deducted if withdrawn between 1-2 years, and 1% if withdrawn after 2 years. No withdrawal is permitted in the first year except in case of death.
Can both husband and wife open SCSS accounts?
Yes, both spouses can open individual SCSS accounts if they meet the age criteria. Each can deposit up to Rs.30 Lakhs, allowing a couple to invest up to Rs.60 Lakhs collectively in SCSS.
Where can I open an SCSS account?
SCSS accounts can be opened at any Post Office or authorized banks including SBI, ICICI Bank, HDFC Bank, Axis Bank, and other major banks. You will need identity proof, address proof, age proof, and passport-size photographs.