Senior Citizen Savings Scheme (SCSS) Calculator
Work out the quarterly interest payout and total interest from a Senior Citizen Savings Scheme deposit over its 5-year term.
Current SCSS rate is 8.2% p.a., paid quarterly. Maximum deposit is ₹30 lakh; tenure is 5 years.
What Is an SCSS Calculator?
The Senior Citizen Savings Scheme (SCSS) is a Government of India small-savings scheme designed specifically for retirees and senior citizens who want a safe, regular income. It is available to Indian residents aged 60 and above (with relaxations for certain early retirees) through post offices and authorised banks.
An SCSS Calculator helps you work out the quarterly interest income you will receive on your deposit at the current rate of 8.2% per annum. Unlike a compounding scheme, SCSS pays the interest out to you every quarter, so it acts like a steady pension. The principal is returned in full at the end of the 5-year tenure, making it a popular choice for managing retirement cash flow.
SCSS Income Formula and How It Works
Because SCSS interest is paid out quarterly rather than reinvested, the calculation is straightforward. Your quarterly payout is simply the annual interest divided into four equal parts:
Quarterly payout = P × r ÷ 4
Where:
- P = amount deposited
- r = annual interest rate as a decimal (0.082)
Key features of the scheme:
- The tenure is 5 years, extendable by a further 3 years.
- The maximum deposit is ₹30 lakh per individual.
- Interest is paid quarterly and is not compounded, since it leaves the account each quarter.
- The full principal is returned at maturity.
Worked Example
Suppose a senior citizen deposits ₹10,00,000 in SCSS at the current rate of 8.2% per annum.
Annual interest = ₹10,00,000 × 0.082 = ₹82,000.
Quarterly payout = ₹82,000 ÷ 4 = ₹20,500. This amount is credited every three months, giving a reliable income stream.
Over the 5-year tenure, the total interest earned is ₹82,000 × 5 = ₹4.1 lakh, and the original ₹10 lakh principal is returned at maturity. Our SCSS Calculator does this instantly, so you can see exactly how much regular income your deposit will generate.
Eligibility and Tax Treatment
Before investing, keep these rules in mind:
- Eligibility: Open to Indian residents aged 60 and above. Those aged 55 to 60 who have retired under a voluntary or superannuation scheme, and certain defence retirees, may also qualify subject to conditions.
- Section 80C: Deposits up to ₹1.5 lakh qualify for deduction under Section 80C.
- Taxable interest: The interest you earn is fully taxable as per your income slab, and TDS applies if total interest in a year crosses the prescribed threshold.
- Premature closure: Allowed after one year with a small penalty on the deposit.
Always confirm the latest notified rate on the official India Post or your bank website, since the SCSS rate is reviewed each quarter.
Frequently Asked Questions
The current Senior Citizen Savings Scheme interest rate is 8.2% per annum, paid quarterly. The rate is set by the Government of India and reviewed every quarter, so always check the latest notified rate before investing.
SCSS interest is paid out every quarter, directly to your bank account. It is not compounded, because the interest leaves the account each quarter as income rather than being reinvested.
The maximum deposit in SCSS is ₹30 lakh per individual. The minimum deposit is ₹1,000, and deposits are made in multiples of ₹1,000.
Indian residents aged 60 and above can open an SCSS account. Early retirees aged 55 to 60 under a voluntary or superannuation scheme, and certain defence personnel, may also be eligible subject to specific conditions.
Yes. The interest earned on SCSS is fully taxable as per your income tax slab. TDS is deducted if your total interest in a financial year exceeds the prescribed threshold. Deposits do qualify for a Section 80C deduction.
Yes, premature closure is allowed. After one year, a penalty of 1.5% of the deposit applies, and after two years the penalty reduces to 1%. The principal, less any penalty, is returned to you.