Want Rs 50,000 every quarter from SCSS? Check how much you need to invest

The government has kept interest rates on small savings schemes unchanged for the july–September 2026 quarter. This continues to make the Senior Citizens' Savings Scheme (SCSS) an attractive investment option, as it offers the joint highest interest rate among all small savings schemes.

The government revises small savings schemes’ interest rates including that of the SCSS every quarter.
The SCSS is a government-backed small savings scheme specifically designed for senior citizen investors seeking a fixed income option in their old age.

SCSS interest rate for July-September 2026 quarter

An 8.2% interest rate in the SCSS is applicable for the July-September 2026 quarter.

Deposit limits in SCSS

The minimum deposit in SCSS is Rs 1,000 and the maximum investment 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 in each account provided both are individually eligible to open an SCSS account.

What can be your investment to generate Rs 50,000 quarterly income from the SCSS?

If a senior citizen wants to get a quarterly income of Rs 50,000 from the Senior Citizens' Savings Scheme (SCSS), they would need to invest around Rs 24.40 lakh, based on the current interest rate of 8.2% per annum, which is paid quarterly. To earn Rs 50,000 every quarter, the annual interest income should be Rs 2 lakh (Rs 50,000 × 4).
At an interest rate of 8.2% per annum, an investment of approximately Rs 24,40,000 would generate this annual interest income.

Quarterly income: Rs 50,000
Annual interest required: Rs 50,000 × 4 = Rs 2,00,000
Required investment: Rs 2,00,000 ÷ 8.2% = Rs 24,40,000 (approximately)
So, you would need to invest around Rs 24.40 lakh in an SCSS account to receive about Rs 50,000 every quarter as interest (before tax).

What happens in case of excess deposits made in SCSS?

If an excess deposit is made in an SCSS account, the depositor will get a reimbursement, and the interest rate on the PO savings account will apply and will be valid from the date of the excess deposit until the return date.

Whether an Aadhaar card is necessary to open an SCSS account?

Yes. An Aadhaar card is necessary to open an SCSS account.

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.
Calculator used: Cleartax