Worked example
Example with the default numbers — change them above.
Amount you invest: ₹10,00,000
Investing ₹10 L in SCSS at 8.2% pays ₹20,500 every quarter (about ₹6,833 a month) for 5 years, and your ₹10 L comes back at the end.
| Interest every quarter | ₹20,500 · About ₹6,833 a month |
|---|---|
| Interest each year | ₹82,000 · 8.2% of ₹10 L |
| Total interest in 5 years | ₹4.1 L · 20 quarterly payments |
| Money back at maturity | ₹10 L · Your original amount |
How the SCSS Calculator works
- Enter the amount you plan to invest (₹1,000 to ₹30,00,000). If you enter more, the calculator uses the limit and tells you.
- Each quarter you receive one quarter of the yearly interest: amount × yearly rate ÷ 4.
- This continues for 20 quarters over 5 years. The interest is paid out, so it is not added to your balance and does not compound.
- At maturity you get your original amount back. The chart adds the interest received to your amount, year by year.
- The monthly figure divides the quarterly payment by three, to compare with other income options. SCSS itself pays quarterly.
SCSS income
Quarterly interest = P × r ÷ 4
Total interest = quarterly interest × 20 payments
P = amount invested (up to the limit), r = yearly rate as a decimal
Principal is returned in full at maturityAssumptions and limits
- The rate used applies for the full 5 years. As per the scheme rules, the rate in force when you open the account is the one that stays.
- The investment is capped at ₹30,00,000 per depositor. Amounts above this are ignored, not carried over.
- Interest is simple, paid out quarterly, and assumed to be spent or kept outside the scheme. The calculator does not reinvest it; interest you leave unclaimed earns nothing more.
- Interest is paid on the first working day of April, July, October and January. If you open the account part-way through a quarter, the first payment covers only the days since you opened it; the calculator shows 20 equal full-quarter payments, rounded to the rupee in practice. The total interest over the term is the same.
- SCSS is for people aged 60 or older, retirees aged 55 to 60 who invest within 3 months of receiving retirement benefits, and retired defence personnel from 50; eligibility is not checked here.
- The calculation does not deduct tax. SCSS interest is taxable, tax may be deducted at source above a yearly threshold, and under the old tax regime the investment can qualify for Section 80C (now section 123 of the Income-tax Act, 2025). Check current rules.
- Extensions are not modelled. After 5 years the account can be extended in blocks of 3 years, as many times as you like, by applying within one year of maturity or of the end of each block; an extension earns the rate in force on the maturity date, not your original rate.
- Closing early is not modelled. Closing within the first year means the interest already paid is recovered from your deposit; after 1 year but before 2 years, 1.5% of the deposit is deducted; after 2 years, 1%. Partial withdrawals are not allowed.
Frequently asked questions
How much interest will I get from SCSS?
Interest per quarter is the amount invested times the yearly rate divided by 4. At 8.2%, an investment of ₹10,00,000 pays ₹20,500 every quarter. The calculator above does the same for your amount, up to the ₹30,00,000 limit, and also shows the monthly equivalent and the total interest over the five years.
What is the current SCSS interest rate?
The SCSS rate is 8.2% a year for Q3 FY2026-27, effective 1 October 2026. The Finance Ministry reviews small-savings rates every quarter, so the next change could come around 1 January 2027. The rate on the day you open the account is the one you keep for the full five years. We last checked this rate on 21 October 2026; confirm with India Post or your bank before you invest.
What is the maximum investment in SCSS?
The maximum is ₹30,00,000 per depositor, and the minimum is ₹1,000, in multiples of ₹1,000. A joint account is allowed only with your spouse, and the whole joint deposit counts towards the first holder's ₹30,00,000 limit. So a couple can each hold up to ₹30,00,000 in their own names, provided each is eligible.
Who can invest in the Senior Citizen Savings Scheme?
Individuals aged 60 or above can invest. People aged 55 to under 60 who have retired, including by voluntary retirement, can invest if they open the account within 3 months of receiving their retirement benefits, and only up to the amount of those benefits. Retired defence personnel (not civilian defence employees) can invest from age 50. The spouse of a government employee who died in service can also open an account. Confirm the conditions with your bank or post office.
Is SCSS interest taxable?
Yes. SCSS interest is added to your income and taxed at your slab rate. Banks and post offices may deduct tax at source if the yearly interest crosses a threshold, which has been higher for senior citizens and can change with the Budget. Under the old tax regime, the investment can qualify for a Section 80C (now section 123 of the Income-tax Act, 2025) deduction. Check the latest rules.
Can I close SCSS before 5 years?
Yes. Closing within the first year means the interest already paid to you is recovered from the deposit. Closing after one year but before two years costs 1.5% of the deposit, and after two years it costs 1%. Partial withdrawals are not allowed. At maturity you can extend the account for 3 years, and again at the end of each 3-year block, by applying within one year; closing an extended account within a year of the extension costs 1%. Confirm the latest terms with the post office or bank.
Sources
- National Savings Institute (Ministry of Finance): Senior Citizens' Savings Scheme details
- India Post: current interest rates on post office savings schemes
- Income Tax Department: Income-tax Act, 2025, section 123 – ₹1.5 lakh deduction for specified savings (old section 80C)
- Income Tax Department: Income-tax Act, 2025, section 393 – TDS on interest (old section 194A)
Logic and rates last verified on .
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