SCSS Calculator
Calculate Senior Citizen Savings Scheme returns
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About Senior Citizen Savings Scheme (SCSS) Calculator
SCSS is a government-backed savings scheme specifically designed for senior citizens aged 60+ years. It offers one of the highest interest rates among safe investment options, with quarterly interest payouts. The scheme has a 5-year tenure (extendable by 3 years) and provides income tax benefits under Section 80C. It's an ideal scheme for risk-averse senior citizens looking for regular income.
How SCSS Works
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Eligibility: 60+ years (55-60 for VRS/retirement)
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Minimum deposit: ₹1,000, Maximum: ₹30 lakhs
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Tenure: 5 years (extendable by 3 years)
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Interest paid quarterly (every 3 months)
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Interest rate: Currently 8.2% p.a. (revised quarterly)
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Tax benefit: ₹1.5 lakhs under Section 80C
Example:
Deposit ₹15 lakhs at 8.2% interest - you'll receive ₹30,750 every quarter as interest. After 5 years, total interest = ₹6.15 lakhs!
Key Benefits
Highest Safe Returns: Better than FDs, backed by Government of India
Regular Income: Quarterly interest payouts for daily expenses
Tax Benefits: ₹1.5 lakhs deduction under Section 80C
Safe Investment: 100% capital protection by government
Extendable: Can extend by 3 more years after 5 years
Joint Account: Can open with spouse
Frequently Asked Questions
Who can open an SCSS account?
Indian citizens aged 60+ years. Individuals aged 55-60 who have retired under VRS or superannuation can also open. NRIs are not eligible for SCSS.
What is the maximum deposit limit in SCSS?
Maximum deposit is ₹30 lakhs per individual. If investing with spouse in joint account, total limit is ₹30 lakhs per person (₹60 lakhs combined). No minimum limit except ₹1,000.
How is SCSS interest paid?
Interest is credited quarterly (every 3 months) starting from the date of deposit. For example, if you open account on Jan 15, interest will be paid on Apr 15, Jul 15, Oct 15, and Jan 15 every year.
Can I withdraw money before 5 years?
Yes, but with penalties: After 1 year - 1.5% of deposit deducted. After 2 years - 1% of deposit deducted. Premature closure is not allowed before 1 year except in extreme cases.
Is SCSS interest taxable?
Yes, interest is fully taxable as per your income tax slab. TDS is deducted if yearly interest exceeds ₹50,000 (for senior citizens). However, deposits qualify for 80C deduction.
Can I extend SCSS after 5 years?
Yes, you can extend for 3 more years within 1 year of maturity. The extension can be done only once. Interest rate at time of extension will apply for the extended period.
What happens if account holder dies?
Account can be closed prematurely without penalty. Maturity amount is paid to nominee/legal heir along with interest earned till date of death.
Can I have multiple SCSS accounts?
Yes, but total deposits across all accounts cannot exceed ₹30 lakhs. You can open accounts in different post offices or banks offering SCSS.
Where can I open SCSS account?
SCSS accounts can be opened at: All India Post Offices, Authorized Public and Private Sector Banks (SBI, HDFC, ICICI, etc.). Check with your bank if they offer SCSS.
Is nomination mandatory for SCSS?
Nomination is not mandatory but highly recommended. You can nominate one or more persons. Nomination can be changed anytime during the account tenure.
How does SCSS compare to bank FDs?
SCSS typically offers 0.5-1% higher interest than bank FDs. SCSS interest: ~8.2%, Bank FD: 7-7.5%. Plus, SCSS is government-backed (safer) and offers 80C tax benefit on deposits.
Can I get a loan against SCSS?
No, loans/overdrafts are not available against SCSS deposits. If you need money, you'll have to close the account (with applicable penalties if before 5 years).