Senior Citizen Savings Scheme (SCSS): Rules, 8.2% Interest & Quarterly Payout
The Senior Citizen Savings Scheme (SCSS) is a sovereign retirement income program backed by the Government of India that offers a 8.20% annual interest rate paid out as quarterly income for retirees. The scheme has an individual deposit ceiling of ₹30,00,000 (₹30 Lakh), allows an initial 5-year tenure that can be extended in 3-year increments, and qualifies for Section 80C tax deductions up to ₹1.5 Lakh under the Old Tax Regime.
Quarterly interest is paid on the first working day of April, July, October, and January directly into the investor's linked bank or post office account.
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SCSS Key Features & Eligibility Criteria
| Feature | Statutory Rule |
|---|---|
| Current Interest Rate | 8.20% per annum (Simple, Paid Quarterly) |
| Eligibility Age | Individuals aged 60 years or above |
| VRS / Superannuation Exemption | Aged 55 to 60 years (must invest within 1 month of retirement benefits) |
| Retired Defense Personnel | Aged 50 years or above |
| Maximum Deposit Limit | ₹30,00,000 per individual (₹60 Lakh for a senior couple) |
| Tenure | 5 Years, extendable by 3 years (total 8 years) |
| Tax Exemption on Principal | Up to ₹1,50,000 under Section 80C (Old Regime) |
| TDS Threshold | TDS applies under Section 194A if annual interest exceeds ₹50,000 |
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Quarterly Payout Calculation & Worked Example
$$\mathbf{\text{Quarterly Interest}} = \frac{\text{Principal} \times 0.082}{4}$$
$$\text{Quarterly Payout} = \frac{10,00,000 \times 0.082}{4} = \mathbf{₹20,500 / \text{quarter}} \quad (\text{₹82,000/year})$$
$$\text{Quarterly Payout} = \frac{20,00,000 \times 0.082}{4} = \mathbf{₹41,000 / \text{quarter}} \quad (\text{₹1,64,000/year})$$
$$\text{Quarterly Payout} = \frac{30,00,000 \times 0.082}{4} = \mathbf{₹61,500 / \text{quarter}} \quad (\text{₹2,46,000/year})$$
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Extension and Premature Withdrawal Rules
1. Extension Beyond 5 Years: The account holder can extend the account for an additional block of 3 years by submitting Form 4 within 1 year from the date of maturity.
2. Premature Closure Charges:
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Frequently Asked Questions
Can a senior citizen couple invest ₹60 Lakh together?
Yes. Both husband and wife can open separate individual SCSS accounts (or joint accounts with each other as the primary holder) and deposit up to ₹30 Lakh each, providing a combined quarterly income of ₹1,23,000 (₹4,92,000 annually).How can senior citizens avoid TDS on SCSS interest?
If a senior citizen's total annual taxable income is below the basic tax exemption limit, they can submit Form 15H at the beginning of each financial year to the bank or post office to receive interest payouts without tax deduction.⚡ Try the Interactive Tool
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