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SCSS Account Death Rules: Nominee, Spouse or Legal Heir Claims
The Senior Citizens Savings Scheme is a savings account for eligible older people.
It normally lasts for five years.
If the account holder dies early, the money is paid to the nominee or legal heirs, depending on the circumstances.
Interest earned up to the date of death is included.
Until the claim is settled, the money earns the applicable Post Office Savings Account interest rate.
A spouse may be able to continue the account if they are a joint holder or the sole nominee.
If there is no valid nominee, the legal heirs may have to provide more documents.
Keeping nomination and account details updated can make the process easier for the family.
If an SCSS holder dies before maturity, the deposit and interest up to the death date go to the nominee or legal heirs, as applicable.
After the death date, the deposit earns interest at the applicable Post Office Savings Account rate until settlement.
An eligible spouse may continue the account on the same terms if the account is joint with the spouse or the spouse is the sole nominee.
Without a valid nomination, legal heirs must complete the prescribed claim-settlement process and may need additional legal documents.
As of 19 September 2026, SCSS offers 8.2% annual interest, paid quarterly, with a five-year tenure and a maximum deposit of ₹30 lakh per individual.
- Who
- SCSS account holders, their nominees, spouses and legal heirs.
- What
- The article explains how an SCSS account and its proceeds are handled when the account holder dies before maturity.
- Where
- The claim is settled under the applicable SCSS and India Post procedures.
- When
- The rules discussed apply when death occurs before the five-year maturity period; the stated interest details are as of 19 September 2026.
- Why
- To clarify who receives the funds and how nomination and succession planning can simplify settlement.
Key facts
- Interest rate
- 8.2% per annum as of 19 September 2026
- Interest payout
- Quarterly
- Standard tenure
- Five years
- Maximum deposit
- ₹30 lakh per individual
- Death settlement
- Deposit and applicable interest up to the date of death are paid to the nominee or legal heirs, as applicable
- Post-death interest
- The deposit earns the applicable Post Office Savings Account rate until final settlement
- Spouse provision
- An eligible spouse may continue the account when it is jointly held with the spouse or the spouse is the sole nominee
Sources
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