The Senior Citizen Savings Scheme (SCSS) is one of India's best retirement income products, offering 8.2% p.a. with quarterly payouts. With a maximum deposit of ₹30 lakh, SCSS provides a steady and safe income stream for retirees. Use the calculator above to plan your retirement income from SCSS.

SCSS Quarterly Income for Different Deposits

Deposit Amount	Quarterly Payout	Monthly Equivalent	Annual Income
₹5,00,000	₹10,250	₹3,417	₹41,000
₹10,00,000	₹20,500	₹6,833	₹82,000
₹15,00,000	₹30,750	₹10,250	₹1,23,000
₹30,00,000	₹61,500	₹20,500	₹2,46,000

*At current 8.2% p.a. rate. Principal is returned after 5 years. Scheme can be extended by 3 more years.

SCSS Key Features

Highest Safe Returns

At 8.2%, SCSS offers the highest guaranteed return among government schemes for senior citizens — higher than FD rates by 1-2%.

Quarterly Income Stream

Interest is paid every quarter (March, June, September, December) directly to your savings account — ideal for regular expenses.

80C Tax Deduction

Deposits up to ₹1.5 lakh qualify for Section 80C deduction. However, the interest received is fully taxable.

Extension Option

After the 5-year maturity, you can extend the account for 3 more years, continuing to earn the same interest rate.

How to Calculate SCSS Interest

In plain words

SCSS interest is calculated on the deposit amount at the applicable rate and paid quarterly (every 3 months). Unlike cumulative schemes, the interest is not reinvested — it is paid out to the investor. The principal amount is returned at the end of 5 years. The scheme can be extended by 3 more years after maturity.

How the calculation works

Quarterly Interest = P × r / 4
Annual Interest = Quarterly Interest × 4
Total Interest (5yr) = Annual Interest × 5

Where:
P = Deposit Amount
r = Annual SCSS Interest Rate (currently 8.2% = 0.082)

Note: Interest is calculated quarterly and paid out every quarter. The principal remains intact throughout the 5-year tenure.

A quick example

Let us calculate SCSS returns for a ₹5 lakh deposit at 8.2%:

Deposit Amount:₹5,00,000

SCSS Interest Rate:8.2% p.a.

Tenure:5 years

Step by step

1.Quarterly interest = ₹5,00,000 × (8.2% ÷ 4) = ₹5,00,000 × 0.0205 = ₹10,250
2.Annual interest = ₹10,250 × 4 = ₹41,000
3.Total interest over 5 years = ₹41,000 × 5 = ₹2,05,000
4.At maturity: ₹5,00,000 principal is returned
5.Monthly equivalent income = ₹41,000 ÷ 12 = ₹3,417 per month

So the answer is: Quarterly Payout = ₹10,250 | Annual Income = ₹41,000 | Total Interest = ₹2,05,000 | Principal stays intact

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Frequently Asked Questions

Who is eligible for SCSS?

SCSS (Senior Citizen Savings Scheme) is available to: (1) Individuals aged 60 years and above, (2) Individuals aged 55-59 who have retired under VRS/superannuation (must open account within 3 months of retirement), (3) Defence personnel aged 50-54 who have retired under special provisions. The age proof required is the date of birth certificate.

What is the maximum deposit in SCSS?

The maximum deposit in SCSS is ₹30 lakh (₹60 lakh for joint account with spouse). The minimum deposit is ₹1,000. Deposits up to ₹1.5 lakh per financial year qualify for tax deduction under Section 80C.

How is SCSS interest paid?

SCSS interest is paid quarterly — at the end of March, June, September, and December. The interest is credited directly to the depositor's savings or current account. The current interest rate is 8.2% per annum, reviewed quarterly by the government.

Can I withdraw SCSS before maturity?

Yes, but with conditions: (1) After 1 year but before 2 years — 1.5% of the deposit is deducted as penalty, (2) After 2 years — 1% of the deposit is deducted. No penalty applies for closure after 5 years. The account can also be extended for 3 more years after maturity.

Is SCSS interest taxable?

Yes, the interest earned from SCSS is fully taxable as income from other sources. TDS is deducted if interest exceeds ₹50,000 per year (for senior citizens). However, TDS can be avoided by submitting Form 15H. The principal amount deposited is eligible for Section 80C deduction.