SCSS (Senior Citizens Savings Scheme)
Definition
A safe, government-backed savings scheme for seniors offering regular interest payouts and 80C tax benefits.
Key Takeaways
- SCSS is available exclusively for Indian residents aged 60+ (or 55+ for retired defence personnel).
- Offers 8.2% p.a. interest (as of April 2026) with quarterly payouts and maximum deposit of ₹30 Lakhs.
- Deposits qualify for Section 80C tax deduction up to ₹1.5 Lakhs, but interest is taxable.
- Provides a safe, government-backed fixed-return option for retirees seeking stable income.
Detailed Explanation
The Senior Citizens Savings Scheme (SCSS) is a government-backed savings instrument exclusively for Indian residents aged 60 years or older (or 55+ for retired defence personnel). It provides a safe, fixed-return option with regular quarterly interest payouts, making it ideal for retirees seeking stable income.
For FY 2026-27, SCSS offers an attractive interest rate of 8.2% per annum (as of April 2026), paid quarterly. The maximum deposit limit is ₹30 Lakhs (₹15 Lakhs per account, and you can open multiple accounts). The scheme has a 5-year tenure, extendable by 3 years. Deposits qualify for tax deduction under Section 80C up to ₹1.5 Lakhs, though the interest earned is taxable as income.