SCSS Calculator
Senior Citizens' Savings Scheme quarterly income and total interest.
SCSS caps deposits at ₹30 lakh per investor across all accounts. Interest is paid out every quarter and never added to the principal.
Quarterly payout schedule
| Year | Per quarter | Interest that year | Interest so far |
|---|---|---|---|
| 1 | ₹61,500 | ₹2,46,000 | ₹2,46,000 |
| 2 | ₹61,500 | ₹2,46,000 | ₹4,92,000 |
| 3 | ₹61,500 | ₹2,46,000 | ₹7,38,000 |
| 4 | ₹61,500 | ₹2,46,000 | ₹9,84,000 |
| 5 | ₹61,500 | ₹2,46,000 | ₹12,30,000 |
The Senior Citizens' Savings Scheme (SCSS) is a government-backed deposit for people aged 60 and above that pays interest every quarter instead of compounding it. You invest a lump sum of up to ₹30 lakh for five years, collect a fixed payout each quarter, and get the entire principal back at maturity. This calculator shows what that payout is.
SCSS currently pays 8.2% a year — better than most bank FDs, with a sovereign guarantee behind it. Set your investment amount above to see the quarterly cheque, the annual income it adds up to, and the total interest across the term, including the optional three-year extension.
How is the SCSS quarterly payout calculated?
Because SCSS pays interest out rather than reinvesting it, there is no compounding in the formula. The quarterly payout is simply Investment × rate ÷ 400 — one quarter of a year's simple interest — and the principal stays exactly where it is until maturity. Annual income is that payout four times over, and total interest is annual income multiplied by the number of years you stay invested.
At the ₹30 lakh maximum and the current 8.2% rate: 30,00,000 × 8.2 ÷ 400 = ₹61,500 credited every quarter, which is ₹2,46,000 a year, or roughly ₹20,500 a month of spendable income. Over the standard five-year term you collect ₹12,30,000 of interest and still get your ₹30,00,000 back. Extend for the additional three years and the total interest rises to ₹19,68,000.
How to use this calculator
- Enter the lump sum you plan to deposit — anything from ₹1,000 up to the ₹30 lakh ceiling that applies across all your SCSS accounts.
- Set the interest rate; 8.2% is the rate in force, and the rate is locked for your whole term on the day you open the account.
- Choose the tenure: 5 years is the standard term, and 6 to 8 years reflects the one-time three-year extension.
- Read the quarterly payout — that is the amount credited to your savings account on the last day of March, June, September and December.
- Open the payout schedule to see year-by-year income and how the interest accumulates across the term.
SCSS rules and tax for retirees
You can open an SCSS account at any post office or authorised bank if you are 60 or above; the age relaxes to 55 for those who took voluntary retirement (within a month of receiving retirement benefits) and to 50 for retired defence personnel. Accounts can be opened individually or jointly with a spouse, but the ₹30 lakh limit applies per investor across all accounts. Unlike most small-savings schemes, the interest rate you get on the day of deposit stays fixed for the entire five-year term even if the government revises it later.
The deposit qualifies for a Section 80C deduction of up to ₹1.5 lakh in the year of investment, but the interest is fully taxable at your slab rate, and the bank or post office deducts TDS once interest crosses ₹1,00,000 in a financial year for senior citizens. Section 80TTB lets you deduct up to ₹50,000 of deposit interest, which softens the blow. Premature closure is allowed: nothing is paid beyond the deposit if closed within a year, with a 1.5% penalty on the principal before two years and 1% after that.
Frequently asked questions
What is the current SCSS interest rate?
SCSS pays 8.2% per annum, credited quarterly. The Ministry of Finance reviews small-savings rates every quarter, but the rate applicable on the day you open your account is locked in for the full five-year term. That rate certainty is one of the scheme's biggest advantages over bank FDs.
How much can I invest in SCSS?
The maximum is ₹30 lakh per investor across all SCSS accounts, raised from ₹15 lakh in the 2023 Budget. The minimum is ₹1,000, and deposits must be in multiples of ₹1,000. A couple can therefore park up to ₹60 lakh between two individual accounts.
When is SCSS interest paid?
Interest is credited on the last working day of March, June, September and December — four payouts a year, straight into your linked savings account. It is never added to the SCSS principal, so the payout amount stays the same for the entire term. Unclaimed interest sitting in the account earns nothing extra.
Is SCSS interest taxable?
Yes, the interest is fully taxable at your income-tax slab rate and TDS is deducted once it exceeds ₹1,00,000 in a financial year for senior citizens. The investment itself qualifies for Section 80C up to ₹1.5 lakh, and Section 80TTB allows seniors a further deduction of up to ₹50,000 on deposit interest. File Form 15H if your total income falls below the taxable limit.
Can I extend my SCSS account after 5 years?
Yes. The account can be extended once for a further three years by applying within a year of maturity, and the extended account earns the rate in force on the maturity date. Extended accounts can be closed at any time after one year of extension with no penalty.
Is SCSS better than a senior citizen FD?
For most retirees, yes — SCSS at 8.2% typically beats the senior-citizen rate on a five-year bank FD, carries a government guarantee rather than ₹5 lakh of DICGC cover, and qualifies for Section 80C. The trade-offs are the ₹30 lakh cap, the age eligibility, and the fixed quarterly payout, which means no compounding if you do not need the income.
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Disclaimer: results are estimates based on the inputs and published rules/rates, for information only — not investment, tax or legal advice. Verify important decisions with a qualified professional. See our full disclaimer.