Senior Citizen Savings Scheme (SCSS) Calculator
Calculate SCSS returns with quarterly interest payout
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Current SCSS rate: 8.2% p.a. (Q4 2024-25)
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What is SCSS?
The Senior Citizen Savings Scheme (SCSS) is a government-backed savings scheme designed specifically for senior citizens aged 60 years and above. It offers a secure investment option with regular quarterly interest payouts, making it an ideal choice for retirees seeking stable income.
SCSS accounts can be opened at designated post offices and authorized banks across India. The scheme provides capital protection with sovereign guarantee, ensuring your investment is completely safe.
Key Features & Benefits
Core Features
- • Quarterly Interest Payout: Receive interest every quarter
- • Fixed Interest Rate: Rate remains constant for entire tenure
- • Government Guarantee: 100% capital protection
- • Flexible Access: Available at post offices and banks
- • Nomination Facility: Easy inheritance transfer
- • Extension Option: Extend by 3 years after initial 5 years
Key Benefits
- • Capital Protection: No market risk, principal is safe
- • Predictable Income: Regular quarterly payouts
- • Higher Returns: Better rates than regular FDs
- • Tax Benefits: Deduction under Section 80C
- • Senior Citizen Focus: Designed for retirement planning
- • Easy Management: Simple account operation
Eligibility & Investment Details
Who Can Invest?
- Individuals aged 60 years or above
- Individuals aged 55-60 years who have retired under Voluntary Retirement Scheme (VRS) or Superannuation
- Retired defense personnel aged 50 years or above
- Hindu Undivided Family (HUF) cannot open SCSS account
Investment Limits
- Minimum: ₹1,000
- Maximum (Individual): ₹15,00,000 (Fifteen lakhs)
- Maximum (Joint): ₹30,00,000 (Thirty lakhs for two account holders)
- Investment must be in multiples of ₹1,000
- Can open multiple accounts, but total cannot exceed ₹15 lakhs/₹30 lakhs
Where to Open?
SCSS accounts can be opened at:
- Post Offices across India
- Authorized nationalized banks (SBI, PNB, BOI, etc.)
- Select private banks offering SCSS
Interest Payout Schedule
SCSS offers quarterly interest payouts, providing regular income every three months. The interest is credited on the first working day of each quarter.
Quarterly Payout Dates
Payout Options
- Auto-Credit: Interest can be auto-credited to your linked savings account
- Manual Collection: Visit the post office/bank to collect interest
- Interest Accumulation: If not withdrawn, interest can accumulate (but doesn't earn additional interest)
Tax Implications
Tax Benefits
- Section 80C Deduction: Principal investment qualifies for tax deduction up to ₹1.5 lakhs per financial year
- Deduction available only in the year of investment
- Helps reduce taxable income
Tax on Interest
- Interest earned is fully taxable as per your income tax slab
- TDS (Tax Deducted at Source): Applicable if total interest in a financial year exceeds ₹50,000
- TDS rate: 10% if PAN is provided, 20% if PAN is not provided
- Submit Form 15H (for individuals below 60) or Form 15G (for senior citizens) if total income is below taxable limit to avoid TDS
Important Tax Points
- Interest must be reported in ITR even if TDS is not deducted
- If closed prematurely, tax benefits under 80C may be reversed
- On maturity, only the accumulated interest (if any) is taxable; principal is not taxed again
SCSS vs Other Investment Options
| Feature | SCSS | Senior Citizen FD | PMVVY |
|---|---|---|---|
| Interest Rate | 8.2% p.a. | 7-8% p.a. | 7.4% p.a. |
| Tenure | 5 or 8 years | 1-10 years | 10 years |
| Investment Limit | ₹15L (₹30L joint) | No upper limit | ₹15L max |
| Interest Payout | Quarterly | Monthly/Quarterly | Monthly/Quarterly/Yearly |
| Premature Withdrawal | After 1 year (penalty) | Allowed (penalty varies) | After 3 years (penalty) |
| Tax Benefits | 80C up to ₹1.5L | 80C up to ₹1.5L | No 80C benefit |
| Safety | Govt. guarantee | Bank/DICGC insured | Govt. guarantee |
Frequently Asked Questions
1. Who can open an SCSS account?
Individuals aged 60 years or above, or those aged 55-60 who have retired under VRS or superannuation, or retired defense personnel aged 50+ can open an SCSS account. The account must be opened within one month of receiving retirement benefits for early retirees.
2. What is the current SCSS interest rate?
The current SCSS interest rate is 8.2% per annum (as of Q4 2024-25). The government reviews and may revise these rates quarterly, but once opened, your rate remains fixed for the entire tenure.
3. How is the interest paid in SCSS?
Interest is paid quarterly on the first day of April, July, October, and January. It can be auto-credited to your linked savings account or collected manually from the post office/bank. Note that interest is paid out, not compounded.
4. Can I have multiple SCSS accounts?
Yes, you can open multiple SCSS accounts, but the total investment across all accounts cannot exceed ₹15 lakhs (for individual accounts) or ₹30 lakhs (for joint accounts combined).
5. What happens on maturity?
On maturity (after 5 years), you have two options: (1) Withdraw the principal amount along with any accumulated interest, or (2) Extend the account for another 3 years at the prevailing interest rate. The extension must be done within one year of maturity.
6. Can I close my SCSS account before maturity?
Yes, premature closure is allowed after 1 year. However, penalties apply: 1.5% of deposit is deducted if closed after 1 year but before 2 years, and 1% is deducted if closed after 2 years but before 5 years.
7. Is the SCSS interest rate fixed for the entire tenure?
Yes, once you open an SCSS account, the interest rate remains fixed for the entire tenure of 5 years (or 8 years if extended). Even if the government revises the rates quarterly, your existing account is not affected.
8. Can I add more money to my SCSS account later?
No, you cannot add additional deposits to an existing SCSS account after opening. If you want to invest more, you must open a new SCSS account, subject to the overall investment limit of ₹15 lakhs/₹30 lakhs.
9. What documents are needed to open an SCSS account?
You need: (1) Age proof (birth certificate, PAN card, passport, or Aadhaar), (2) Identity proof (Aadhaar, PAN, passport, voter ID), (3) Address proof (Aadhaar, passport, utility bills), (4) Passport-size photographs, and (5) For early retirees: retirement documents and proof of retirement benefits received.
10. What are the tax implications of SCSS?
The principal investment qualifies for tax deduction under Section 80C (up to ₹1.5 lakhs per year). However, the interest earned is fully taxable as per your income tax slab. TDS is deducted if annual interest exceeds ₹50,000. You can submit Form 15H to avoid TDS if your total income is below the taxable limit.