SCSS Calculator
Senior Citizen Savings Scheme — quarterly interest income and total returns over 5 years.
Maximum ₹30,00,000 per senior citizen.
Current SCSS rate: 8.2% p.a. · Interest paid quarterly · Term 5 years
NSI / Min. of Finance · verified 2026-06-30
₹30,750
paid every 3 months (₹1,23,000 per year).
Total interest (5 yrs)
₹6,15,000
Principal returned
₹15,00,000
How the SCSS Calculator works
Reviewed by Dinesh Babu · Last updated July 2026
The Senior Citizens' Savings Scheme (SCSS) is a government-backed scheme that gives people aged 60 and above a safe, regular income. This calculator shows the quarterly interest you would receive and your total return over the 5-year term, based on your deposit amount.
SCSS currently pays 8.2% per annum, but crucially the interest is paid out quarterly straight to your bank account rather than being compounded — it is designed as a steady income stream for retirees, not a growth product. Because it is government-backed, both your capital and the income are secure for the term.
It is one of the highest-yielding guaranteed schemes available to seniors, which is why it is a cornerstone of many retirement income plans. Eligibility is age 60+, or 55+ in certain early-retirement cases, and the maximum you can deposit is ₹30,00,000.
SCSS quarterly income
Quarterly interest = P × 8.2% ÷ 4
P = deposit. Paid every quarter (not compounded); principal is returned at the end of the 5-year term.
Income now vs growth later
SCSS deliberately pays interest out every quarter rather than compounding it, which suits retirees who need regular cash flow but means the headline 8.2% does not snowball the way a compounding instrument would. If you do not need the income immediately, a compounding option might build a larger corpus — SCSS optimises for steady income, not maximum growth.
The scheme runs for 5 years and can be extended by a further 3 years within a year of maturity, at the rate applicable at extension.
Tax treatment — read this carefully
The interest from SCSS is fully taxable at your income-tax slab, and because retirees can earn substantial interest here, TDS is deducted once the annual interest crosses the applicable threshold (seniors have a higher TDS threshold, and Form 15H can be submitted if total income is below the taxable limit).
On the positive side, the deposit qualifies for Section 80C deduction up to ₹1.5 lakh. But do not confuse the 80C benefit on the deposit with tax-free interest — the income itself is taxed.
| Feature | SCSS (8.2%, payout) | Compounding FD (illustrative) |
|---|---|---|
| Interest handling | Paid out quarterly | Reinvested |
| Best for | Regular income now | Growing a corpus |
| 5-year interest | ₹4,10,000 (flat) | Higher (compounds) |
| Eligibility | Age 60+ | Anyone |
₹30 lakh (the maximum) in SCSS
At 8.2%, annual interest is 30,00,000 × 0.082 = ₹2,46,000, paid as ₹61,500 every quarter. Over the 5-year term that is ₹12,30,000 of income, while your ₹30,00,000 principal is returned in full at the end — a dependable retirement income of about ₹20,500 per month equivalent.
₹10 lakh deposit
Annual interest = 10,00,000 × 0.082 = ₹82,000, or ₹20,500 per quarter. Because interest is paid out and not reinvested, the total interest over 5 years is a flat 5 × ₹82,000 = ₹4,10,000 — there is no compounding to boost it.
Common mistakes to avoid
- Expecting compounding. SCSS pays interest out quarterly, so the 8.2% does not build on itself — the total interest is simply the annual figure times five.
- Forgetting that the interest is fully taxable. Large deposits generate large, taxable income, and TDS applies over the threshold.
- Depositing more than ₹30,00,000 across accounts — the limit applies per individual, and excess is not accepted.
- Overlooking Form 15H. Eligible seniors whose income is below the taxable limit can submit it to avoid unnecessary TDS.
Frequently asked questions
Who is eligible for SCSS?+
Individuals aged 60 and above. Those aged 55–60 who have retired under a voluntary or superannuation scheme can also open an account within one month of receiving retirement benefits, and certain retired defence personnel qualify earlier. It is for resident individuals, not NRIs or HUFs.
How much can a senior citizen invest in SCSS?+
Up to ₹30,00,000 per individual (raised from the earlier ₹15 lakh limit). The minimum is ₹1,000. The scheme runs for 5 years and can be extended by a further 3 years.
What is the SCSS interest rate and how is it paid?+
SCSS currently pays 8.2% per annum, among the highest for guaranteed senior schemes. Importantly it is paid out quarterly to your bank account rather than compounded — it is an income scheme, so the interest does not snowball. The live rate and its verified date are shown on the calculator.
Is SCSS interest taxable?+
Yes, fully. The interest is added to your income and taxed at your slab, and TDS is deducted once annual interest crosses the applicable threshold. The deposit does qualify for Section 80C deduction, but the interest income itself is taxable.
Can I withdraw from SCSS before 5 years?+
Yes, premature closure is allowed but with a penalty: roughly 1.5% of the deposit if closed within the first year (after the first year), and 1% between years two and five, with the exact terms set by the scheme rules. It is best treated as a 5-year commitment.
How is SCSS different from NSC?+
SCSS pays a higher 8.2% as quarterly income and is only for seniors, capped at ₹30 lakh. NSC pays 7.7% compounded and paid at maturity, is open to anyone, and has no upper deposit limit. SCSS suits income now; NSC suits guaranteed growth over five years.
Can I avoid TDS on SCSS interest?+
If your total income is below the taxable limit, you can submit Form 15H (for seniors) to the bank or post office so that TDS is not deducted. If your income is taxable, TDS will apply once interest crosses the threshold, and you settle the balance when filing your return.