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

By Ektha Surana

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Updated on: Sep 5th, 2025

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5 min read

The Senior Citizen Savings Scheme was introduced in the year 2004 as 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. It can either be opened in a post office branch or in a few selected banks. This scheme supports a maximum deposit of Rs.30 lakhs, with a tenure of 5 years which can be further extended to 3 years

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.

Features of SCSS

The following are the features of Senior Citizen Savings Scheme.

Secure Investment

SCSS is a government-backed scheme. Hence, the invested amount is secure and there is guarantee of returns upon its maturity. 

Mode of Deposit

An individual can deposit the money in cash when the amount is below Rs.1 lakh. When the deposit amount is above Rs.1 lakh, an individual should make bank payment.

Maturity and Withdrawal 

  • The maturity period of SCSS is 5 years. 
  • However, individuals can extend the maturity period for 3 more years by submitting an application. 
  • The application for extension should be within one year from the date of maturity.
  • Withdrawals from Senior Citizens Savings Scheme accounts will be exempt from tax starting August 29, 2024. 

Nominations

Individuals can appoint nominees either while opening an SCSS account or after opening the account.

Number of Accounts 

Individuals can open more than one SCSS account. They may open another account either by themselves or a joint account with their spouse. However, joint accounts can be opened only with the spouse, the whole deposit amount is attributed to the first account holder only.

Minimum and Maximum Deposit Amount 

The minimum deposit is Rs.1,000 and the maximum is Rs.30 lakh. The deposits can be made in multiples of Rs.1,000.

Transfer of an Account 

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

Premature Closure

Individuals can withdraw the amount and close the account at any time on an application in Form-2 subject to the following conditions

  • Closed before one year - interest paid in the account shall be recovered from the principal amount.
  • Closed after one year but before two years - an amount equal to 1.5% will be deducted from the principal amount and shall be levied as a penalty
  • Closed after 2 years - 1% of the principal amount will be deducted and shall be levied as a penalty.

Multiple withdrawals from an account shall not be permitted.

Tax Benefits

  • Amount deposited to SCSS scheme can be claimed as deduction under Section 80C of the Income Tax Act.
  • If the total interest in all 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. 

Senior Citizen Savings Scheme Interest Rate

ParticularsDetails
Interest Rate8.2% per annum (for Q1 and Q2 of FY 2025-26)
Calculation
  • Interest rates are changed every quarter.
  • Compounding happens quarterly.
PaymentInterest payment will be credited on the first date of April, July, October, and January. 

SCSS Calculator

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

Senior Citizen Savings Scheme - Age Limit and 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. 

How SCSS Works?

Here is how an SCSS account works:

  • Open an SCSS account by depositing a minimum amount of Rs.1,000 up to Rs.30 lakh in a single instalment.
  • The deposit amount is restricted to the retirement benefits received.
  • It must be deposited 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.
  • Interest on the deposit will be paid once every quarter.
  • Interest can be drawn through auto credit into the savings account held at the same Post Office branch or through ECS (Electronic Clearing Service).
  • The account can be prematurely closed at any time, after the date of opening.
  • The account may be extended for a further period for 3 years from the date of maturity.
  • The extension can be done within 1 year from the date of maturity.

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.  

Which Banks Offer SCSS?

The following banks offer SCSS:

List of Banks offering Senior Citizen Savings Scheme
Allahabad BankCanara BankOriental bank of Commerce
Andhra bankCentral Bank of IndiaPunjab National Bank
Bank of MaharashtraDena BankState bank of Bikaner & Jaipur
Bank of BarodaIDBI BankState Bank of Hyderabad
Bank of IndiaIndian BankState Bank of India
Corporation BankIndian Overseas BankState Bank of Mysore
State Bank of PatialaState Bank of TravancoreSyndicate Bank
UCO BankUnion Bank of IndiaUnited Bank of India
Vijaya BankICICI Bank 

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

Documents 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.

Other Articles:  
1. Disadvantages of Senior Citizen Savings Scheme  
2. Post Office Saving Scheme  
3. National Savings Certificate 
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

Frequently Asked Questions

How many accounts can be opened under SCSS by a senior citizen?

An account holder may operate more than one account under the scheme subject to the condition that the deposits in all the accounts taken together shall not exceed the maximum limit, i.e. Rs.30 lakh.

How to open an SCSS account online?

As of now, there is no option for you to open an SCSS account online. Neither do the authorised banks nor the Post Office provide you a platform to open the account online. Please follow the steps provided above to open the account offline.

How can a SCSS account be transferred from a post office to a bank?

You can transfer the SCSS account by submitting Form G to the post office along with the required documents for transfer of account to the bank of your choice.

Can I open a joint SCSS account with my wife who is below 60 years?

Yes. Since you are above 60 years, you can appoint your spouse as the joint account holder even if she is below 60 years. You will be the primary account holder, thus your wife’s age will not affect opening the account.

What is the share of the joint account holder of SCSS?

The whole amount in the SCSS account is given to the first account holder or first depositor. Thus, adding a spouse as a joint account holder does not matter in this case.

Can both spouses open separate SCSS accounts?

Yes, both spouses can open individual SCSS accounts provided both of them are aged above 60 years. 

Is TDS applicable to the interest earned from the SCSS account?

Yes, TDS is applicable on the interest if it exceeds Rs. 50,000 per annum. However, if the interest is below Rs.50,000 in a financial year, TDS will not be deducted if you submit Form 15G/15H to the post office. If the account is opened by individuals less than 60 years, TDS will be deducted if the total interest exceeds Rs.10,000 per annum.

In the case of a joint account, if the first account holder expires before maturity, can the account be continued?

Yes, in the case of a joint account, the spouse can continue the account after the death of the first account holder only if the spouse is above 60 years and does not have another SCSS account. If the spouse is below 60 years, the nominee can continue the account until its maturity, and the account will earn interest till maturity. 

What are the benefits of SCSS?

Simple account opening process, government backing for safety, high interest rates and extendable tenure (for further 3 years) are some of the benefits of Senior Citizen Savings Scheme. 

What is the rate of interest applicable in SCSS?

8.2% is the rate of interest applicable in SCSS from 1st April 2024 to 31st March 2025.

Can I have the option of withdrawing the amount before maturity under SCSS?

Yes, you have an option of withdrawing the amount after 1 year of opening an account under SCSS. However, you can’t withdraw the amount within 1 year of opening an account under SCSS.

Will I be charged any penalty or any charge if I withdraw the amount before maturity?

Yes, a 1.5% charge will be deducted from the principal amount if the account is closed after one year of opening it. A 1% charge will be deducted from the principal amount if the account is closed after two years of opening it.

Will I get tax benefits if I have an account under SCSS?

Yes, under Section 80C, individuals are eligible for tax deductions on investments up to Rs.1.5 lakh. If the interest amount is within Rs.50,000 p.a., TDS will not be deducted.

Should TDS be deducted if the interest is paid to legal heir?

Yes. TDS needs to be deducted even if the interest is paid to legal heir.

Can I nominate more than one person on opening SCSS account?

Yes. Multiple nominations are possible in SCSS scheme. On the death of the depositor, the amount will be paid to nominee(s) as mentioned on opening of the account.

Can the nomination be changed or cancelled after account opening?

Yes. The nominees can be changed after the opening of the account also. The existing nominees can also be cancelled during the tenure.

About the Author
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Ektha Surana

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Multitasking between pouring myself coffees and poring over the ever-changing tax laws. Here, I've authored 100+ blogs on income tax and simplified complex income tax topics like the intimidating crypto tax rules, old vs new tax regime debate, changes in debt funds taxation, budget analysis and more. Some combinations I like- tax and content, finance & startups, technology & psychology, fitness & neuroscience. Read more

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