SCSS Calculator 2026 (Senior Citizens Savings Scheme)

Calculate the quarterly interest from a one-time SCSS deposit at the current 8.2% p.a. (up to ₹30 lakh)

One-time deposit (₹)

₹

Quick Presets:

₹1,000₹30.00 L

SCSS takes a single deposit when you open the account. To invest more later, open another account: all your SCSS accounts together can hold at most ₹30 lakh.

Interest rate: 8.2% p.a., the rate notified for the current quarter. Whatever rate applies on the day you open the account stays fixed for all 5 years.

Date you deposit (optional)

Interest is paid for calendar quarters, so a deposit made mid-quarter gets a smaller first payment, and the last payment, on the maturity date, covers the days left. Leave it empty to see full quarters only.

Extend after 5 years

You can extend the account in blocks of 3 years, as many times as you like. An extended account earns the rate notified on its maturity date, which is not known yet; this uses today’s rate.

Quarterly Payout (4x / Year): ₹30,750 / quarter; Annual Payout: ₹1.23 L (at 8.2% p.a.)

Total interest over 5 years: ₹6.15 L
80C deduction (old regime only): ₹1.50 L

At this deposit the interest is more than ₹1 lakh a year, so TDS will be deducted from your payouts. The ₹1 lakh limit counts the interest from all your SCSS accounts together, so check the total if you hold more than one. If you owe no tax, submit Form 121 (which replaced Form 15H) to the post office or bank to stop it.

The deduction (section 123 of the Income-tax Act, 2025, earlier 80C) applies only under the old regime, only in the year you deposit, and within the ₹1.5 lakh limit you share with PPF, ELSS and similar investments. Under the new regime, which is the default, it saves no tax. Compare both regimes before you count on it.

5-Year SCSS Payout Schedule

Show as

Year 1
Quarterly Interest
₹30,750 / qtr
Annual Interest Paid
₹1.23 L
Principal returned
—
Cumulative Interest
₹1.23 L
Year 2
Quarterly Interest
₹30,750 / qtr
Annual Interest Paid
₹1.23 L
Principal returned
—
Cumulative Interest
₹2.46 L
Year 3
Quarterly Interest
₹30,750 / qtr
Annual Interest Paid
₹1.23 L
Principal returned
—
Cumulative Interest
₹3.69 L
Year 4
Quarterly Interest
₹30,750 / qtr
Annual Interest Paid
₹1.23 L
Principal returned
—
Cumulative Interest
₹4.92 L
Year 5
Quarterly Interest
₹30,750 / qtr
Annual Interest Paid
₹1.23 L
Principal returned
₹15.00 L
Cumulative Interest
₹6.15 L

Year	Quarterly Interest	Annual Interest Paid	Cumulative Interest	Principal returned
Year 1	₹30,750 / qtr	₹1.23 L	₹1.23 L	—
Year 2	₹30,750 / qtr	₹1.23 L	₹2.46 L	—
Year 3	₹30,750 / qtr	₹1.23 L	₹3.69 L	—
Year 4	₹30,750 / qtr	₹1.23 L	₹4.92 L	—
Year 5	₹30,750 / qtr	₹1.23 L	₹6.15 L	₹15.00 L

SCSS Quarterly Interest Formula & Live Calculation

Standard Formula

Quarterly Payout = (Deposit Amount × Annual Interest Rate) / 4

Live Calculation (Plugging Your Values)

Deposit Amount (P):₹15.00 L

Annual Interest Rate (r):8.2% p.a. (fixed for the term)

Tenure (n):5 years (extendable in 3-year blocks)

Substituted Equation:

Quarterly Payout = (₹15.00 L × 8.2%) / 4 = (₹1,23,000) / 4

Quarterly Payout Amount:₹30,750 / quarter

This is simple interest: each quarter's interest is paid out, not added to the deposit, so every payout is the same and is rounded to the nearest rupee. Payouts arrive on the first working day of April, July, October and January; the first one covers only the days from your deposit to the end of that quarter. Under the old regime, senior citizens can also deduct up to ₹50,000 of interest under section 153 of the Income-tax Act, 2025 (earlier 80TTB).

A part quarter earns the quarter’s interest × days in the period ÷ days in the quarter (scheme paragraph 5(9)). That applies to the first payment if you deposit mid-quarter, and to the last one, paid on the maturity date.

About the Senior Citizens Savings Scheme

SCSS is a government savings scheme run through post offices and authorised banks. You deposit a lump sum once; it pays you interest every quarter for five years and then returns the deposit. The rate in force when you open the account stays fixed for the whole term.

Interest is paid out, not compounded

SCSS interest does not compound. Each quarter's interest goes to you, usually into your linked savings account, and is not added to the deposit, so the payout stays the same every quarter. Interest you leave unclaimed earns nothing extra. To grow the money, you have to reinvest the payouts yourself.

Who can open an account

Anyone aged 60 or over.
Retired civilian employees aged 55 to 60, and retired defence personnel aged 50 to 60, if they open the account within three months of receiving their retirement benefits. Their deposit cannot exceed those benefits.
You can open an account alone or jointly with your spouse. The whole deposit in a joint account counts against the first holder's ₹30 lakh limit.

One deposit per account

Each account takes a single deposit of at least ₹1,000, in multiples of ₹1,000, and you cannot add to it later. You may hold more than one account, but all your SCSS deposits together cannot exceed ₹30 lakh.

How to open an SCSS account

Go to a post office or a bank branch authorised to run the scheme. Some banks also let you open it through internet or mobile banking.
Fill in Form-1, the application form for small savings schemes.
Attach your Aadhaar (or proof that you have applied for it, with the number due within six months) and your PAN or Form 60.
If you are a retiree aged 55 to 60 (defence: 50 to 60), add proof of the date your retirement benefits were paid and a certificate from your employer.
Name up to four nominees in Form 10.
Pay the deposit in cash, by cheque or demand draft, or by electronic transfer. With a cheque, interest runs from the day it clears.

After five years, or earlier

At maturity you get the deposit back, or you can extend the account for three more years by applying in Form-4 within a year. You can extend again at the end of each three-year block, and the extended account earns the rate in force on the date of maturity.
You can close the account early: within the first year all interest paid is recovered from the deposit; between one and two years 1.5% of the deposit is deducted; after two years, 1%.

Rules from the Senior Citizens' Savings Scheme, 2019 and the Government Savings Promotion General Rules, 2018 (National Savings Institute), with the 7 November 2023 amendment G.S.R. 829(E) as reproduced by TaxGuru, since NSI has not yet republished it. Income-tax Act, 2025 section numbers from ClearTax's old-to-new table.

References

How these numbers are checked →

Senior Citizens Savings Scheme (SCSS) FAQs

What is the current SCSS interest rate?

The Senior Citizens Savings Scheme currently pays 8.2% per annum, among the highest of any government-backed fixed-income option. The rate is notified quarterly by the Ministry of Finance, but the rate at the time you open the account is locked for the full 5-year term.

Does SCSS interest compound?

No. SCSS pays simple interest. Each quarter's interest is paid out to you, usually into your linked savings account, and is never added to the deposit, so every quarterly payment is the same amount. Interest you leave unclaimed earns nothing extra (scheme rules, para 5(4)). If you want the money to grow, you have to reinvest the payouts yourself.

Can I invest in SCSS every year, or only once?

Only once per account. An SCSS account takes a single deposit when you open it, and you cannot add money later (scheme rules, para 4(2)). To invest more, open another account: you may hold several, but all your SCSS deposits together cannot exceed ₹30 lakh. The whole deposit in a joint account counts against the first holder's limit.

Who is eligible to open an SCSS account?

Resident individuals aged 60 years or above are eligible. Retired civilian employees aged 55-60 years and retired defence personnel aged 50-60 years can also open an account within three months of receiving their retirement benefits, and their deposit cannot exceed those benefits. The window was one month until the scheme was amended on 7 November 2023 (G.S.R. 829(E)).

How do I open an SCSS account?

Visit a post office or a bank branch authorised to run the scheme, or use internet banking where your bank offers it. Fill in Form-1 and attach your Aadhaar and your PAN (or Form 60). A retiree aged 55-60 also attaches proof of when the retirement benefits were paid and a certificate from the employer. Name up to four nominees, then pay the deposit in cash, by cheque or by electronic transfer.

What is the maximum deposit limit for SCSS in 2026?

The maximum deposit limit for Senior Citizens Savings Scheme (SCSS) is ₹30 Lakhs per individual (increased from ₹15 Lakhs in Budget 2023). Deposits can be made in multiples of ₹1,000. The limit covers all your SCSS accounts together, not each account.

How are SCSS interest payouts disbursed?

SCSS interest is paid out quarterly on the first working day of April, July, October, and January directly into the subscriber bank account linked with India Post or participating banks. The first payment covers only the days from your deposit to the end of that quarter.

Does SCSS qualify for Section 80C tax deduction?

Only under the old tax regime. The deposit qualifies for the deduction under section 123 of the Income-tax Act, 2025 (earlier section 80C) in the year you make it, within the ₹1,50,000 limit you share with PPF, ELSS and other such investments. Under the new regime, which is the default, it saves no tax.

Is SCSS interest subject to TDS?

Yes, if total interest across all SCSS accounts exceeds ₹1,00,000 in a financial year for senior citizens, TDS is deducted at 10% under section 393 of the Income-tax Act, 2025 (earlier section 194A). The threshold rose from ₹50,000 on 1 April 2025. If you owe no tax, submit Form 121 to the post office or bank to stop the deduction; it replaced Form 15H from 1 April 2026.

What penalty applies if I close an SCSS account early?

Closure is allowed any time after opening, but the deduction depends on when. Close within the first year and all interest already paid to you is recovered from the principal. Close after one year but before two, and 1.5% of the deposit is deducted. Close after two years, and 1% is deducted. On the death of the account holder no penalty applies at all and the balance is paid to the nominee at the applicable rate.

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