Senior Citizens Savings Scheme Calculator

Compute quarterly interest payout, total interest & maturity value over 5 years. (Extension for 3 years ignored for simplicity.)

Maximum limit ₹30 lakh (as per current rules)

Update if government revises the rate

Interest is payable quarterly. This tool assumes interest withdrawn each quarter (no compounding). Effective annual yield shown.

Quarterly Interest Payout
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Total Interest (Tenure)
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Maturity Value
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Effective Annual Yield
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How SCSS Interest Is Calculated

The Senior Citizens Savings Scheme pays simple interest every quarter. If you reinvest the interest elsewhere the compounding benefit depends on the alternate return. This calculator assumes you withdraw quarterly interest without reinvestment.

Senior Citizens Savings Scheme (SCSS) – Complete Guide 2025

Senior Citizens Savings Scheme (SCSS) is a government backed fixed income product meant to provide regular income to retirees. With attractive interest (reviewed quarterly) and sovereign safety, it is usually the first debt allocation after retirement corpus consolidation.

Key Features

  • Eligibility: Resident individuals aged 60+. Superannuation / VRS retirees 55–60 can invest within 1 month of receipt of retirement benefits.
  • Tenure: 5 years; one-time extension of 3 years permitted.
  • Maximum Investment: ₹30 lakh aggregate (principal across all SCSS accounts).
  • Interest Payout: Credited quarterly (end of March, June, September, December).
  • Taxation: Interest fully taxable; TDS applies if interest exceeds threshold. Not eligible for Section 80C (except earlier year initial investment via retirement benefits – ignore for simplicity).

SCSS vs Alternatives

ProductInterest BasisPayout StyleTax TreatmentLock-in
SCSSFixed (quarterly reset)QuarterlyFully Taxable5 yrs
Bank FD (Senior)Bank decidedChoice (monthly / quarterly / cumulative)TaxableFlexible
Post Office MISFixedMonthlyTaxable5 yrs
Senior AnnuityActuarialMonthly / AnnualTaxableLife

Interest & Yield Clarification

Because interest is not compounded inside SCSS (it is paid out), the effective annual yield equals the nominal annual rate. If you reinvest quarterly proceeds into another instrument, your portfolio level yield could be higher.

Premature Closure

  • Before 1 year: Not allowed (except demise of depositor).
  • 1–2 years: 1.5% of principal deducted.
  • After 2 years: 1% of principal deducted.

How to Optimise SCSS Usage

  1. Max out SCSS (₹30L) to lock higher government administered rate when favourable.
  2. Stagger deposits across quarters to diversify reinvestment timing on extension.
  3. Channel quarterly interest into growth mutual funds / short term debt to combat inflation.

FAQs – SCSS

Is SCSS interest guaranteed? Yes – sovereign backed. Rates can change only for new / renewed accounts.

Can NRIs invest? No, only resident individuals at the time of opening.

Is extension automatic? Needs a formal application within 1 year of maturity.