Senior Citizen Savings Scheme (SCSS) 2026-27: Interest Rate, Tax Benefits & How to Open Account

The Senior Citizen Savings Scheme (SCSS) is a government backed savings scheme for senior citizens offering interest rate of 8.5%, paid out monthly. Eligible individuals can invest a minimum of Rs. 1000 up to Rs. 30 lakh for a period of 5 years while also claiming deductions under the old tax regime. 

Latest Update - Senior Citizen Savings Scheme (SCSS) FY 2026-27

Particulars	Latest Update
Q1 FY 2026-27 Interest Rate	8.2% p.a.
TDS Threshold	Rs. 1 lakh for senior citizens
Nil TDS Declaration Forms	Form 121
Extension Rule	5 year tenure extendable by 3 years

SCSS Interest Rate FY 2026-27

The senior citizen savings scheme interest rate is 8.2% for Q1 FY 2026-27 (Apr-Jun 2026). SCSS interest rate is changed every quarter and the interest payment is also quarterly on the first day of each quarter i.e., on April 1, July 1, October 1, January 1.

SCSS - Historical Interest Rates

The Senior Citizen Savings Scheme interest rates have remained constanr at 8.2% over the past quarters. However, the interest rate offered was as high as 9.3% during FY 2015-16 making the SCSS one of the most safe and high return schemes. 

SCSS Key Highlights Table

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.

However, Non-Resident individuals and Hindu Undivided Families (HUFs) are not eligible for SCSS. It is also mandatory to have PAN and Aadhar to open a SCSS account. 

Senior Citizen Savings Scheme Tax Benefits

• The principal amount deposited in the SCSS scheme can be claimed as deduction under section 80C (Section 123 of the Income Tax Act, 2025) of the Income Tax Act.
• Section 80C benefits are not available under the new tax regime.
• 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.

The following illustrations explains the returns on a Rs. 1 lakh investment for a period of 5 years in SCSS. The SCSS interest rate is 8.2% for FY 2026-27. 

Features of SCSS

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

1. 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.

2. 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.

3. Nominations

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

4. 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.

5. Transfer of an Account 

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

6. Premature Closure and Withdrawal

• Individuals can withdraw the amount and close the account at any time on an application in Form 2.
• Premature withdrawal can be made only once. Withdrawals from SCSS accounts will be exempt from tax starting August 29, 2024.
• Penalty on premature withdrawal are as follows:

7. 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.

SCSS Maturity Amount

SCSS vs PPF vs NSC vs FD - Comparison

Through this, we can infer that Senior Citizens Savings Scheme is more beneficial for eligible persons, predominantly because of the interest rate. However, taxpayers are advised to evaluate the alternatives and plan their investments accordingly.

How to Open Post Office 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. 

Step 1: Visit your nearest India Post branch that offers Senior Citizen Savings Scheme (SCSS) services.

Step 2: Ask for the SCSS account opening form or download it from the official India Post website

Step 3: Fill in the required details

• Name and address
• PAN and Aadhaar number
• Deposit amount
• Nominee details
• Savings account information for interest credit

Step 4: Submit the required documents

• Aadhaar card
• PAN card
• Proof of age
• Passport-size photographs
• Retirement proof (if applicable for VRS/superannuation cases)

Step 5: Deposit the investment amount

Step 6: You can nominate one or more family members while opening the account.

Step 7: The post office will verify your documents and process the application.

Step 8: Once approved, you will receive an SCSS passbook

Step 9: Interest is credited quarterly directly to your linked savings account.

Documents Required to Open SCSS Account

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.

Moreover all the documents must be self-attested by the applier.

Which Banks Offer SCSS?

The authorised banks that offer Senior Citizen Savings Scheme are as follows:

1. List of Public Sector Banks:

• Punjab National Bank
• Bank of Baroda
• State Bank of India
• Union Bank
• Canara Bank
• Bank of India
• Indian Bank
• Central Bank
• UCO Bank
• Bank of Maharashtra
• Punjab & Sind Bank
• Indian Overseas Bank

2. List of Private Sector Banks

• HDFC Bank
• Axis Bank
• ICICI Bank
• IDBI Bank

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

SCSS Calculator