Archive · 12 Jun 2025
SCSS: Eligibility, Features, and Interest Rates Explained
The Senior Citizens Savings Scheme (SCSS) is a savings plan for older people in India, backed by the government.
It gives you an interest rate of 8.2% per year, paid every three months.
People 60 and older can join, and so can some retirees.
You can deduct the money you invest from your taxes, but the interest you earn is taxed.
Your money is kept in the scheme for 5 years, but you can choose to extend this.
The Senior Citizens Savings Scheme (SCSS) is a government-backed savings plan in India.
SCSS offers an interest rate of 8.2% per annum, paid quarterly.
Individuals aged 60+ are eligible; retired civilians 55-59 and retired defense personnel 50-59 are also eligible under specific conditions.
Investments are tax-deductible under Section 80C, but interest earned is taxable.
The scheme has a 5-year term, extendable for an additional 3 years.
- Who
- Individuals aged 60+, retired civilians 55-59, and retired defense personnel 50-59.
- What
- Senior Citizens Savings Scheme (SCSS) investment plan.
- When
- Interest is paid quarterly.
- Where
- India.
- Why
- To provide financial security to senior citizens.
Tax Benefits
Taxation of Interest
Taxation of SCSS
Tax Benefits
Investments in SCSS are eligible for deductions under Section 80C.
Taxation of Interest
The interest earned is completely taxable.
- Interest Rate
- 8.2% annually (as of June 12, 2025)
- Eligibility
- 60+ years old; retired civilians 55-59; retired defense personnel 50-59
- Maximum Investment
- Rs 30 lakh
- Tax Benefits
- Deduction under Section 80C up to Rs 1.5 lakhs; interest is taxable
- Tenure
- 5 years, extendable by 3 years
