Senior Citizen Savings Scheme: Rates, Eligibility, and How It Works

Who's eligible

Indian residents aged 60 and above; those who took voluntary retirement can join from 55, and defence personnel (subject to conditions) from 50. NRIs and HUFs are not eligible.

The current terms

SCSS currently offers 8.2% per annum (Q1 FY 2026-27), among the higher rates across small savings schemes, reflecting its purpose as a retirement-income vehicle. The maximum deposit limit is ₹30 lakh across all SCSS accounts held. Interest is paid out quarterly directly to the investor's account - a genuine income stream, not a lump sum only at maturity. The tenure is 5 years, extendable once by 3 years, and the rate is locked in at the time of investment for that tenure.

Tax treatment

Investment qualifies for the 80C deduction (within the usual combined ₹1.5 lakh limit) under the old regime, though the interest earned is fully taxable - not a tax-free instrument in the way PPF is, despite the 80C benefit on the way in.

(Rate, deposit limit, and eligibility checked as of September 2026, Q1-Q2 FY 2026-27 - the deposit limit was raised to ₹30 lakh in 2026; confirm the current limit if reading this well after that.)

The takeaway

For a retiree wanting a safe, regular, government-guaranteed income stream, SCSS is one of the strongest options available - the quarterly payout structure specifically suits an income need, not just a growth need.