Retirement Income · Government Scheme
Senior CitizensSavings Scheme
(SCSS)
A government-backed scheme built for retirees — earn quarterly income at a fixed rate with capital security and potential Section 80C benefits.
Govt-Backed
Sovereign guarantee — your principal is safe.
5 + 3 Years
5-year maturity with a 3-year extension option.
Quarterly Income
Interest paid every quarter — steady regular income.
Section 80C
Investment may qualify for deduction under 80C.
Extendable
Extend for 3 more years after initial maturity.
Overview
What is SCSS?
The Senior Citizens Savings Scheme (SCSS) is a Government of India-backed small savings scheme designed to give retirees a secure investment and regular quarterly income. It carries a 5-year tenure (extendable by 3 years), a fixed interest rate locked in at account opening, and potential Section 80C tax deduction benefits.
Income Example · 8.2% p.a.
At maximum investment of ₹30 lakh, quarterly interest paid directly to your account:
₹61,500
per quarter · before tax
Eligibility
Who Can Invest?
- Individuals aged 60 years or above
- Retired civilians aged 55–60, subject to retirement conditions
- Retired defence personnel aged 50–60, subject to scheme rules
- Joint account allowed with spouse
KYC
Documents Required
- Age proof — Aadhaar, PAN, Passport, Birth Certificate
- Identity & address proof as per KYC norms
- PAN or other tax documentation where applicable
- Retirement documents (for early-eligibility applicants)
- Passport-sized photographs if required
Where to Open
Post Offices & Authorised Banks
Authorised Banks
Select public and private sector banks are also authorised to offer SCSS accounts.
Returns & Tax
Interest & Tax Treatment
How interest works
Interest is fixed at the rate notified when you open the account and paid every quarter. The rate applicable to existing accounts follows the scheme rules in force at opening.
Tax treatment
Investment may qualify for Section 80C deduction (up to ₹1.5L overall limit). Interest is fully taxable and TDS may be deducted at source. Verify your individual position with a tax advisor.
Early Exit
Premature Closure Rules
- After 1 year but before 2 years — 1.5% deduction on deposit
- After 2 years — 1% deduction on deposit
- Special provisions apply on death of account holder
- Premature closure not permitted before 1 year
Things to Know
Before You Invest
- Max investment ₹30 lakh per individual across all SCSS accounts
- Interest earned is fully taxable; TDS may apply
- Quarterly interest rates are reviewed and may change for new investments
- Primarily a medium-term scheme — limited liquidity before maturity
Is SCSS right for your retirement plan?
Talk to a Wealth Doctor — free advice.