Senior Citizen Savings Scheme (SCSS) 2025: Interest Rate, Tax Benefits & Limit

The Senior Citizen Savings Scheme is a part of post office savings scheme, to provide financial security to senior citizens who are in need of a steady income post retirement. Residents aged more than 60 years, can individually or jointly open SCSS account.

Key Highlights

• The current interest rate applicable to SCSS is 8.2% p.a.
• Deduction under section 80C of the Income Tax Act can be claimed for deposit amount.
• Non resident Indians (NRIs) are not eligible to open SCSS scheme account.

Senior Citizen Savings Scheme - Eligibility

The following individuals can open a SCSS account with a post office or bank:

• Individuals above 60 years.
• Retired civilian employees aged 55 to 60 years can open SCSS account within 1 month of receipt of retirement benefits.
• Retired defense employees aged 50 to 60 years can open SCSS account within 1 month of receipt of retirement benefits.
• Account can be opened in an individual capacity or jointly with spouse only.
• Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are not eligible to open a SCSS.
• PAN and Aadhar numbers are mandatory to open SCSS account from 31st March, 2023. 

Features of SCSS

The following are the features of the Senior Citizen Savings Scheme.

Secure Investment

• Since SCSS is a government-backed scheme, there is a guarantee of returns upon its maturity. 

Although cash deposits are allowed up to Rs. 1 lakh, bank payments are mandatory for deposits exceeding the limit.

Multiple and Joint Accounts

• Individuals can open more than one SCSS account.
• However, joint accounts can be opened with the spouse only, and the whole deposit is attributed to the first account holder.

Nominations

• Nominees can be appointed either while opening an SCSS account or after.

Deposit

• Although cash deposits are allowed up to Rs. 1 lakh, bank payments are mandatory for deposits exceeding the limit.
• The minimum deposit is Rs 1,000 and the maximum is Rs 30 lakh, which can be made in multiples of Rs 1,000.
• The deposit amount is restricted to the retirement benefits received. It should be deposited in one installment within one month from the receipt of retirement benefits.
• Retirement benefits here includes provident fund dues, gratuity, commuted value of pension, leave encashment, savings element of Group Savings Linked Insurance Scheme, retirement-cum-withdrawal benefit under the Employees’ Family Pension Scheme and ex-gratia payments under a voluntary or a special voluntary retirement scheme.
• If the deposit is in excess of the ceiling amount, the excess amount shall be refunded to the account holder immediately.

Transfer of an Account 

• An SCSS account can be transferred between a post office and a bank. Also, it is transferable across India.

Tax Benefits

• Amount deposited in the SCSS scheme can be claimed as deduction under Section 80C of the Income Tax Act.
• If the total interest in SCSS accounts exceeds Rs 1 lakh p.a., TDS will be deducted. 
• If the account is opened by individuals less than 60 years, TDS will be deducted if the total interest exceeds Rs 50,000 per annum.

Premature Closure and Withdrawal

• Individuals can withdraw the amount and close the account at any time on an application in Form 2.
• Penalty on premature withdrawal are as follows:

• Premature withdrawal can be made only once. Withdrawals from SCSS accounts will be exempt from tax starting August 29, 2024.

Maturity

• The maturity period of SCSS is 5 years, further extendable up to 3 years. 
• The application for extension should be within one year of the date of maturity.

Senior Citizen Savings Scheme Interest Rate

The following image illustrates the estimated returns under senior citizen savings scheme for a period of five years.

SCSS Calculator

Check out our Senior Citizen Savings Scheme returns calculator to know the accumulated interest and maturity amount at the end of the term. 

Which Banks Offer SCSS?

The following banks offer SCSS:

Along with these banks, the Post Office also offers SCSS.

Documents Required to Open SCSS Account

You can download the SCSS application form for account opening from the India Post website. You can collect the SCSS application form either at the post office branch or on the official website of the India Post.  The following documents are required to open SCSS account:

• Two passport-size photographs
• Identity proof, such as a PAN card, Voter ID, Aadhaar card or passport.
• Proof of address, such as Aadhaar card or telephone bills.
• Proof of age, such as PAN card, Voter ID, birth certificate or senior citizen card.

All the documents must be self-attested.

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2. Post Office Saving Scheme  
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4. Post Office Scheme To Double Your Money  
5. Mahila Samman Saving Certificate Scheme  
6. Ponmagan Scheme in Post Office
7. SBI Amrit Vrishti Scheme