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Next toolsAssumptions and methodology
Transparent calculation notes for SCSS Calculator.
Formula used
Quarterly interest payout
Quarterly payout = principal x annual rate / 4
The calculator estimates quarterly income and total interest from Senior Citizen Savings Scheme assumptions.
Methodology
- Apply the annual SCSS rate to the investment amount.
- Divide yearly interest into quarterly payouts, rounded to the nearest rupee as the scheme pays them.
- Add 3-year extension blocks after the first 5 years, paid at the assumed extension rate.
- Track cumulative interest through the selected tenure.
Core assumptions
- The opening rate applies for the first 5 years; extension blocks use the assumed extension rate.
- Interest is paid quarterly and not compounded.
- Investment amount follows applicable scheme limits.
Not included
- TDS, tax slab impact, premature closure penalties and eligibility checks are excluded.
- The rate for each extension is set when the account matures; the calculator uses your assumption.
- Government scheme rules can change.
About SCSS (Senior Citizens Savings Scheme) Calculator
Guide1What is SCSS (Senior Citizens Savings Scheme)?
The Senior Citizens Savings Scheme (SCSS) is a government-backed savings instrument specifically designed for individuals aged 60 and above in India. It offers one of the highest interest rates among all small savings schemes and provides a reliable source of regular income for retirees.
SCSS accounts can be opened at any post office or authorized bank. The scheme has a maturity period of 5 years, which can be extended any number of times in blocks of 3 years.
2Key Features of SCSS
- Eligibility: Residents aged 60+, and retirees aged 55–60 (50+ for retired defence personnel) who invest within 3 months of receiving retirement benefits; also the spouse of a Government employee who died in harness after turning 50
- Interest Rate: Government-set quarterly (8.2% p.a. for accounts opened 1 Oct–31 Dec 2026), paid out quarterly
- Investment Limit: Maximum ₹30,00,000 per individual
- Tenure: 5 years, extendable in 3-year blocks (apply within 1 year of maturity)
- Tax Benefit: The deposit is deductible up to ₹1.5 lakh under Section 123 (formerly 80C) in the old regime only; the interest is taxable.
- Interest Payout: Paid quarterly on 1st April, 1st July, 1st October, and 1st January
3SCSS Interest Calculation
SCSS pays simple interest quarterly:
Quarterly Interest = Principal × Annual Rate / 4
For example, an investment of ₹30,00,000 at 8.2% would yield ₹61,500 per quarter or approximately ₹20,500 per month in interest income. This interest is credited directly to your savings account.
4How to Use This SCSS Calculator
- Step 1: Enter your investment amount (up to ₹30,00,000)
- Step 2: Input the current SCSS interest rate
- Step 3: View the quarterly interest payouts and total interest earned over the 5-year tenure
- Step 4: Choose 8 to 20 years to add 3-year extensions, and set the rate you expect for them
Frequently Asked Questions
FAQCan both husband and wife open separate SCSS accounts?
Yes, if each of you is eligible (aged 60+, or a retiree aged 55–60, or 50+ for retired defence personnel, who invests within 3 months of receiving retirement benefits), each can open individual accounts with a maximum of ₹30 lakh each. Joint accounts are also allowed, with the first holder being the primary investor and meeting the eligibility rules.
Is SCSS interest taxable?
Yes. SCSS interest is taxable at your slab rate in both regimes. TDS at 10% is deducted only if your total interest from that post office or bank exceeds ₹1,00,000 in a tax year (the senior-citizen limit since 1 April 2025). At 8.2% that means an SCSS deposit above about ₹12.2 lakh, if this is your only deposit with that post office or bank. If your tax for the year is nil, submit Form 121 (it replaced Form 15H from 1 April 2026). In the old regime, senior citizens can also deduct up to ₹50,000 of deposit interest.
Can I withdraw SCSS before maturity?
Yes, at any time. Before 1 year, the interest already paid is recovered from your deposit. After 1 year but before 2, 1.5% of the deposit is deducted; after 2 years, 1%. An extended account can be closed after the first year of the extension with no deduction.
What happens at SCSS maturity?
At maturity you can withdraw the deposit or extend it for 3 years at the rate then in force, and repeat at the end of each block. Apply within 1 year of maturity. Closing an extended account within its first year costs 1% of the deposit; after that there is no deduction.
Can NRIs invest in SCSS?
No, NRIs are not eligible to invest in SCSS. If a resident investor becomes an NRI during the tenure, the account can continue until maturity but may earn a lower interest rate from the date of NRI status.