Latest Senior Citizen Savings Scheme Interest Rate 2026: Maximum deposit, tenure and benefits explained

Senior Citizen Savings Scheme (SCSS) is a government-backed small savings scheme specifically designed for investors seeking a fixed income option in their old age . It currently offers the joint highest interest rate of 8.2% among all small savings schemes along with Sukanya Samriddhi Account (SSY). The 8.2% interest rate in SCSS is applicable for the January- March quarter.

The government revises the small savings scheme interest rates including that of SCSS every quarter. For the January – March 2026 quarter, the government has not revised the interest rate of any small savings scheme, including SCSS, in its quarterly review meeting in December 2025.

When leading banks are lowering fixed deposit interest rates following repo rate cuts by the Reserve Bank of India (RBI), SCSS is offering quite a high interest rate compared to them. Most 1-5 year bank FD rates these days are in the range of 6-7.5%. However, the difference is that while there is a deposit limit in SCSS, bank FDs have no such limits.


Also read: Have PPF, NSC, SCSS interest rates changed for January-March 2026? Check latest rates of small savings scheme announced

SCSS account deposit limit

There will be only one deposit in the account in multiple of Rs 1,000 with the maximum amount being Rs 30 lakh.

After the small savings scheme interest rate quarterly review meeting in December 2025, the Ministry of Communications said in its press release dated December 31, 2025: "The undersigned is directed to intimate that. vide memorandum No. 1/4/2019-NS dated 31.12.2025 (copy enclosed), Government of India, Ministry of Finance, Department of Economic Affairs (Budget Division) has informed that the rates of interest on various Small Savings Schemes (National Savings Schemes) for the fourth quarter of the financial year 2025-26 (starting from 1st of January, 2026, and ending on 31st of March, 2026) shall remain unchanged from those notified for the third quarter (1st of October, 2025 to 31st of December, 2025) of FY 2025-26."

When can you prematurely close an SCSS account?

The SCSS account holder may withdraw the deposit and close the account at any time subject to the following conditions:
If an SCSS account is closed before one year, no interest will be paid and any interest paid on the deposit will be recovered from the deposit and the balance will be paid to the account holder.

If a SCCS account is closed after one year but before two years from the date of opening, an amount equal to 1.5% of the deposit shall be deducted and the balance will be paid to the account holder.

If a SCSS account is closed on or after 2 years, an amount equal to 1% of the deposit will be deducted and the remaining balance will be paid to the account holder.

In case a SCSS account is closed before the expiry of one year from the date of extension, an amount equal to 1% of the deposit will be deducted and the balance will be paid to the account holder.

Tenure of SCSS account

The tenure of a SCSS account is 5 years and the interest will be paid on or after 5 years from the date of opening or after the expiry of each block period of three years where the account was extended.

What happens in case of SCSS account holder’s death

In case of the death of an SCSS account holder, from the next day of the date of their death, the account will earn interest at the rate of the post office savings account till the date of the final closure of the account.