SCSS Calculator — Senior Citizens Savings Scheme Payout 2026-27

SCSS Calculator — Senior Citizens Savings Scheme Quarterly Payout

How Senior Citizens Savings Scheme works

Senior Citizens Savings Scheme (SCSS) is the highest-yielding guaranteed savings instrument for Indian residents aged 60 and above. It provides a quarterly income stream backed by the sovereign guarantee of the Government of India.

Key mechanics:

Minimum deposit: ₹1,000 (in multiples of ₹1,000).
Maximum deposit: ₹30,00,000 per individual (Budget 2023 enhancement).
Term: 5 years. Extendable once for 3 more years.
Interest rate: 8.2% p.a. (Q1 FY 2026-27), paid quarterly.
Payout frequency: Quarterly (April 1, July 1, October 1, January 1).
No compounding: Interest is paid out quarterly — principal does not compound.
80C eligible: Principal deposit qualifies for Section 80C deduction.

Quarterly payout calculation

SCSS uses simple interest — principal does not compound:

Quarterly payout = (Principal × Annual rate) ÷ 4

At 8.2% p.a. on ₹30,00,000 (maximum): Quarterly payout = (30,00,000 × 8.2%) ÷ 4 = ₹61,500/quarter Annual income = ₹2,46,000 5-year total interest = ₹12,30,000

Deposit limits and eligibility

Category	Eligibility	Max deposit
Age 60+	All residents	₹30,00,000
Age 55–60	VRS/superannuation retirees (within 1 month of retirement)	₹30,00,000
Ex-defence	Age 50+ (under specified conditions)	₹30,00,000
Joint account	First named holder must be eligible; joint holder can be spouse	₹30,00,000 (combined)

TDS on SCSS interest

Annual SCSS interest	TDS rule
Up to ₹50,000	No TDS
Above ₹50,000	TDS @ 10% (or 20% without PAN)
Senior citizens below tax limit	Submit Form 15H to avoid TDS

Note: The ₹50,000 threshold (FY 2026-27) is for SCSS interest alone, not combined post-office interest.

SCSS interest is fully taxable as “Income from Other Sources” at your applicable income slab rate, even when TDS is not deducted (e.g., if your annual interest is below ₹50,000 or you have submitted Form 15H). Senior citizens whose total income exceeds the basic exemption limit must declare SCSS interest in their ITR. Use our income tax calculator to model your overall tax liability after including SCSS quarterly payouts in your gross income.

Premature closure penalties

Time since opening	Penalty
Less than 1 year	No interest; principal returned only
1 to 2 years	1.5% of principal deducted
2 to 5 years	1% of principal deducted
On death	No penalty; full balance to nominee
At 5-year maturity	Full principal returned

Extension for 3 more years

After 5-year maturity, you can apply for a 3-year extension within 1 year of maturity. During the extension:

The interest rate in effect at the time of extension applies (may differ from original rate).
Standard SCSS premature closure penalties apply during the extension period.
No further extension after the 3-year block.

SCSS vs Post Office MIS

Feature	SCSS	Post Office MIS
Eligible investors	60+ (or 55+ retired)	All adults
Rate (Q1 FY 2026-27)	8.2% p.a.	7.4% p.a.
Payout frequency	Quarterly	Monthly
Maximum deposit	₹30,00,000	₹9,00,000 (single)
80C deduction on deposit	Yes	No
TDS threshold	₹50,000/yr	None (no TDS)
Term	5 years (+ 3yr extension)	5 years (renewable)

Key takeaway: For eligible senior citizens, SCSS dominates MIS on every dimension — higher rate, larger cap, 80C benefit, and higher TDS threshold. MIS is the alternative for investors below 60 who need guaranteed regular income.

SCSS vs NPS for retirement income

Feature	SCSS	NPS
Risk	Zero (sovereign)	Market-linked (NPS equity/debt mix)
Return	Guaranteed 8.2%	Historical ~10–12% (not guaranteed)
Minimum age to access	60	60 (normal retirement)
Monthly income	Quarterly (not monthly)	Monthly annuity (from annuity purchase)
Capital access	Full principal returned at 5yr	60% as lump sum; 40% must buy annuity
Tax	Interest taxable; 80C on deposit	80CCD(1B) on contribution; 60% lump sum tax-free

SCSS and NPS are complementary — SCSS for immediate, guaranteed quarterly income; NPS for long-term corpus accumulation with partial tax-free lump sum.

Bridges

Section 80C deduction calculator — quantify the tax saving on your SCSS deposit
Income tax calculator — compute your overall tax liability including SCSS interest as “Income from Other Sources”
Post Office MIS calculator — monthly income scheme for non-senior investors
NPS calculator — project your National Pension System retirement corpus
NSC calculator — 5-year NSC for 80C tax saving (not restricted to senior citizens)

Frequently Asked Questions

Who is eligible for the Senior Citizens Savings Scheme?

SCSS is available to: (1) Indian residents aged 60 years or above at the time of account opening; (2) individuals aged 55–60 years who have retired under Voluntary Retirement Scheme (VRS) or superannuation, subject to the account being opened within 1 month of receiving retirement benefits; (3) ex-defence personnel aged 50 years or above (under specified conditions). Non-resident Indians and Hindu Undivided Families (HUFs) are not eligible. The account must be opened in one's own name or jointly with a spouse — the first named holder determines eligibility.

What is the maximum deposit limit for SCSS?

The maximum deposit limit for SCSS is ₹30,00,000 per individual, as enhanced by Budget 2023 (previously ₹15,00,000). This limit applies across all SCSS accounts held by an individual — you cannot hold multiple SCSS accounts with a combined balance exceeding ₹30L. The limit for a joint account is ₹30L (not per person), counted against the first named holder's limit. If you deposit retirement proceeds exceeding ₹30L, the excess is returned without interest.

How often is SCSS interest paid, and is TDS deducted?

SCSS interest is paid quarterly — on the first day of April, July, October, and January each year. The interest is credited directly to your linked savings account via ECS/NACH. TDS is deducted at source if the total interest from SCSS in a financial year exceeds ₹50,000 (enhanced from ₹10,000 as per the Finance Act 2023 budget; effective from FY 2023-24). For FY 2026-27, the threshold is ₹50,000. If your SCSS interest is below ₹50,000/year, no TDS is deducted. Senior citizens can submit Form 15H to avoid TDS if total taxable income is below the exemption limit.

Can SCSS be closed before 5 years?

Yes, premature closure of SCSS is permitted. The penalty is: (1) closure before 1 year — no interest; only principal returned; (2) closure after 1 year but before 2 years — 1.5% of the principal is deducted; (3) closure after 2 years but before 5 years — 1% of the principal is deducted. After 5-year maturity, you can extend the account for another 3 years (one block) by applying within 1 year of maturity — during the extension, the prevailing SCSS rate at the time of extension applies. No further extensions beyond the 3-year block are permitted.

Is the SCSS deposit eligible for Section 80C deduction?

Yes. Deposits made in the Senior Citizens Savings Scheme are eligible for deduction under Section 80C of the Income Tax Act, 1961, up to ₹1,50,000 per financial year (combined with all other 80C investments). This applies to the amount deposited in the financial year of opening (or extension). The 80C deduction is on the investment amount, not the interest. SCSS interest itself is taxable as 'Income from Other Sources'.

How does SCSS compare with Post Office MIS for retirement income?

Both SCSS and MIS provide government-guaranteed income, but SCSS is specifically designed for senior citizens and is significantly more advantageous for eligible investors: SCSS offers 8.2% vs MIS's 7.4%; SCSS has a ₹30L cap vs MIS's ₹9L (single); SCSS is 80C-eligible while MIS is not; SCSS pays quarterly while MIS pays monthly. At ₹30L in SCSS, the quarterly payout is ₹61,500 (annual ₹2.46L), vs ₹9L in MIS giving ₹5,550/month (annual ₹66,600). For senior citizens over 60, SCSS is the clear choice over MIS.

Can I open SCSS at a bank, or only at a post office?

SCSS accounts can be opened at both post offices (any branch of India Post) and designated public sector banks (including SBI, Punjab National Bank, Bank of Baroda, Bank of India, Canara Bank, etc.) and some authorised private sector banks. The scheme terms, interest rates, and deposit limits are identical regardless of where the account is opened — all are regulated by the Ministry of Finance. Choose the channel that is more convenient for your ECS mandate setup and quarterly collections.

Compliance disclaimer

Mutual fund investments are subject to market risks. Read all scheme related documents carefully before investing. Past performance is not indicative of future returns. The information on this page is for educational purposes only and does not constitute investment advice. Distribution by Jayesh Jain (AMFI ARN-286359). No advisory fees are charged.