Senior Citizen Savings Scheme (SCSS) 2025: Interest Rate, Tax Benefits & Limit

Launched in 2004 as part of the post office savings initiatives, the Senior Citizen Savings Scheme (SCSS) was designed to ensure financial stability for retirees by offering them a steady income. Indian residents above the age of 60 can open an SCSS account either individually or jointly. Accounts can be opened at post office branches as well as selected banks. The scheme allows a maximum deposit of ₹30 lakhs, with an initial tenure of 5 years, extendable by an additional 3 years.

Key Features of SCSS

Safe Investment
Since SCSS is backed by the Government of India, the investment is completely secure and returns are guaranteed at maturity.

Deposit Method
For deposits below ₹1 lakh, payments can be made in cash. For amounts above ₹1 lakh, the deposit must be made through a bank transfer.

Maturity & Withdrawal

The scheme matures after 5 years.
Investors can extend the account for another 3 years by applying within one year of maturity.
From August 29, 2024, withdrawals made from SCSS accounts are exempt from tax.

Nominations
A nominee can be appointed either at the time of opening an SCSS account or added later after the account has been created.

Number of Accounts
An individual is allowed to open multiple SCSS accounts. These may be opened solely in their own name or jointly with a spouse. However, joint accounts are permitted only with the spouse, and the entire deposit is considered under the name of the primary account holder.

Minimum and Maximum Deposit
The least amount that can be deposited is ₹1,000, while the highest permissible deposit is ₹30 lakhs. Deposits must be made in multiples of ₹1,000.

Account Transfer
An SCSS account can be transferred between post offices and banks, and it can also be moved from one location to another within India.

Premature Closure
The account holder can apply for closure at any time using Form-2, subject to these conditions:

If closed before 1 year – interest paid will be deducted from the principal.
If closed after 1 year but before 2 years – 1.5% of the deposit will be charged as a penalty.
If closed after 2 years – 1% of the principal will be deducted as a penalty.
Partial withdrawals are not allowed.

Tax Benefits

Deposits made under SCSS qualify for deduction under Section 80C of the Income Tax Act.
If the annual interest across SCSS accounts exceeds ₹1 lakh, TDS will be applied.
For individuals below 60 years of age, TDS will be deducted if annual interest crosses ₹50,000.

Senior Citizen Savings Scheme (SCSS) – Interest Rate

Particulars	Details
Interest Rate	8.2% per annum (applicable for Q1 and Q2 of FY 2025-26)
Calculation	Interest rates are revised quarterly. Interest is compounded every quarter.
Payment	Interest is credited on the 1st of April, July, October, and January.

👉 Use our SCSS Calculator to estimate your interest earnings and maturity value at the end of the scheme period.

SCSS – Age Limit & Eligibility

The following categories of individuals are eligible to open an SCSS account at a post office or authorized bank:

Citizens above 60 years of age.
Retired civilian employees aged 55–60 years, provided the account is opened within 1 month of receiving retirement benefits.
Retired defense personnel aged 50–60 years, provided the account is opened within 1 month of receiving retirement benefits.
Accounts can be held individually or jointly, but only with a spouse.
Not eligible: Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs).
From 31st March 2023, PAN and Aadhaar are mandatory for opening an SCSS account.

How Does SCSS Work?

Open an account with a minimum deposit of ₹1,000 and up to a maximum of ₹30 lakh in a single installment.
The deposit amount cannot exceed the retirement benefits received.
The deposit must be made within one month of receiving retirement benefits.
Retirement benefits include provident fund dues, gratuity, commuted pension, leave encashment, savings element of Group Savings Linked Insurance Scheme, retirement-cum-withdrawal benefits under the Employees’ Family Pension Scheme, and ex-gratia payments under voluntary/special retirement schemes.
Any amount deposited above the prescribed limit will be refunded immediately.
Interest is payable every quarter, either via auto-credit to a savings account in the same post office or through ECS (Electronic Clearing Service).
Premature closure of the account is permitted at any time after opening.
The account can be extended for 3 more years after the initial maturity period, provided the request is made within 1 year of maturity.
Application forms can be downloaded from the India Post website or collected directly from a post office branch.

Which Banks Offer SCSS?

The Senior Citizen Savings Scheme (SCSS) can be opened at the post office or through several authorized banks across India.

List of Banks Offering SCSS

Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
IDBI Bank
ICICI Bank
Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab National Bank
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of India
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore
Syndicate Bank
UCO Bank
Union Bank of India
United Bank of India
Vijaya Bank

👉 In addition to these banks, Post Offices across India also provide SCSS facilities.

Documents Required for Opening an SCSS Account

Applicants must submit the following self-attested documents along with the account opening form:

Two passport-size photographs
Identity proof: PAN Card, Voter ID, Aadhaar Card, or Passport
Address proof: Aadhaar Card, telephone bill, or other accepted documents
Age proof: PAN Card, Voter ID, birth certificate, or senior citizen card

Frequently Asked Questions (FAQs) on Senior Citizen Savings Scheme (SCSS)

1. How can I open an SCSS account online?
Currently, there is no online facility available to open an SCSS account. Neither authorised banks nor the Post Office provides an online platform for this scheme. You must visit a bank branch or Post Office in person and follow the offline process with the required documents.

2. Can I open a joint SCSS account with my spouse who is below 60 years of age?
Yes. If you are above 60 years, you can open a joint account with your spouse even if he/she is below 60. You will be the primary account holder, and your spouse’s age will not affect account eligibility.

3. What share does a joint account holder have in SCSS?
The entire amount belongs to the first depositor (primary account holder). The joint holder is added only for convenience, so the spouse does not get an equal share in the deposit.

4. Is TDS applicable on interest earned from SCSS?
Yes. TDS is deducted if annual interest exceeds ₹50,000. If your total interest is below ₹50,000 in a financial year, TDS will not be deducted if you submit Form 15G/15H. For individuals below 60 years, TDS is deducted if the annual interest exceeds ₹10,000.

5. What are the main benefits of SCSS?

Simple and easy account opening process
Backed by the Government of India, ensuring safety
Higher interest rate compared to fixed deposits
Option to extend the scheme for an additional 3 years after maturity
Tax benefits under Section 80C of the Income Tax Act

6. Can I withdraw my deposit before maturity under SCSS?
Yes. Premature withdrawals are allowed after 1 year of account opening. However, withdrawals before 1 year are not permitted, and penalties apply for early closure.

7. Do I get tax benefits under SCSS?
Yes. Investments in SCSS qualify for tax deduction under Section 80C up to ₹1.5 lakh. Additionally, if the annual interest is within ₹50,000, no TDS will be deducted.

8. Can I nominate more than one person in an SCSS account?
Yes. You can add multiple nominees. In the event of the depositor’s death, the maturity amount will be shared among the nominees as specified.

9. How many SCSS accounts can a senior citizen open?
A senior citizen can open multiple SCSS accounts, but the combined deposit amount across all accounts must not exceed ₹30 lakh.

10. Can both husband and wife open separate SCSS accounts?
Yes. If both are senior citizens (60 years and above), each can open an individual SCSS account and enjoy the benefits separately.

11. What is the current rate of interest in SCSS?
For the period from 1st April 2024 to 31st March 2025, the applicable interest rate is 8.2% per annum.

12. Can I change or cancel my nominee after opening an account?
Yes. You can change or cancel nominees anytime during the account tenure.

13. What is the minimum and maximum deposit limit in SCSS?

Minimum deposit: ₹1,000
Maximum deposit: ₹30 lakh (including all accounts combined).

14. What is the tenure of an SCSS account?
The maturity period is 5 years. It can be extended once for an additional 3 years.

15. Can Non-Resident Indians (NRIs) open an SCSS account?
No. NRIs and HUFs (Hindu Undivided Families) are not eligible for SCSS.

16. How is SCSS interest paid?
Interest is credited quarterly (every 3 months) into the depositor’s savings account.

17. What happens if the depositor passes away during the SCSS tenure?
In such a case, the nominee(s) can claim the deposit amount by submitting the required documents at the bank or Post Office.

18. Can SCSS accounts be transferred from one branch to another?
Yes. SCSS accounts can be transferred between banks or Post Offices within India for convenience.

19. Can I open an SCSS account on behalf of someone else?
No. The depositor must personally open the account. However, a Power of Attorney (PoA) holder may operate the account if authorised.