Rs 2.46 lakh yearly income from SCSS: How senior citizens can earn regular interest income

Senior Citizens Savings Scheme (SCSS) the highest interest-paying small savings schemes specifically designed for senior citizens. It is backed by the central government, making it one of the low-risk investment options for senior citizens.

The government reviews small savings schemes’ interest rates including that of SCSS every quarter. For the April–June 2026 quarter, the government did not revise the interest rate of any small savings scheme, including that of Senior Citizen Savings Scheme (SCSS), in its quarterly review meeting in March 2026.

Latest SCSS interest rate 2026

A 8.2% interest rate in SCSS is applicable for the April-June 2026 quarter. The tenure of the deposit is five years and can be further extended by three years.

If a senior citizen invests Rs 30 lakh in SCSS where they get an interest rate of 8.2% per annum, the scheme will generate a quarterly interest payout of Rs 61,500. Since SCSS pays interest every quarter, the investor will receive this amount four times a year. This means the total interest earned in one year will be Rs 2,46,000. Since the SCSS maturity period is five years, they can get this income for five years even if they don’t extend their account.

SCSS calculations to get Rs 2.46 lakh income/year
Investment- Rs 30 lakh
Interest rate- 8.2%
Quarterly interest- Rs 61,500
Interest in a year- Rs 2,46,000

What are the deposit limits in SCSS?

The minimum deposit in SCSS is Rs 1,000 and the maximum limit is Rs 30 lakh in all SCSS accounts opened by an individual. Both the spouses can open a single account and joint accounts with each other with the maximum deposit of up to Rs 30 lakh in each account provided both are individually eligible to open an SCSS account.
If an excess deposit is made in an SCSS account, the depositor will get a reimbursement, and the interest rate on the post office savings account will apply and will be valid from the date of the excess deposit until the return date.

SCSS tax benefits

While the interest earned is fully taxable, senior citizens can claim a deduction of up to Rs 50,000 under Section 80TTB of the Income Tax Act.

When can an SCSS account be closed?

The deposit made at the time of an SCSS account opening will be paid on or after five years from the date of opening, or after any three-year block period when the account was extended. Provided that, following the closure of an existing account or accounts, the depositor may open new accounts as needed, subject to the maximum deposit limit.

In case of the death of an 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.

SCSS account renewal

After the completion of a five-year term, an SCSS account can be extended for a further block of three years within a period of one year from the date of maturity or from the date of the end of each block period of three years.