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The Senior Citizens Savings Scheme (SCSS) is one of the highest-yielding small savings schemes designed specifically for senior citizens. As this scheme is backed by the Central Government, it is considered a low-risk investment option.

The government reviews the interest rates for small savings schemes—including the SCSS—on a quarterly basis. In the review meeting held in March 2026, the government decided not to make any changes to the interest rates of any small savings schemes for the April–June 2026 quarter.

**SCSS Interest Rate in 2026**
For the April–June 2026 quarter, the SCSS offers an annual interest rate of 8.2%. The tenure of this scheme is 5 years, which can be further extended by 3 years. If a senior citizen invests ₹30 lakh in the SCSS, they will receive an interest payout of ₹61,500 every quarter, calculated at an interest rate of 8.2%. Since interest in the SCSS is disbursed every three months, the investor will receive this amount four times a year. Consequently, the total annual interest income would amount to ₹2,46,000. As the maturity period of the SCSS is 5 years, an investor can continue to receive this income for five consecutive years, even without extending the account tenure.

**Calculation of the ₹2.46 Lakh Annual Income**
Investment Amount: ₹30 Lakh
Interest Rate: 8.2%
Quarterly Interest: ₹61,500
Annual Interest: ₹2,46,000

**What is the Deposit Limit for SCSS?**
The minimum deposit allowed in the SCSS is ₹1,000, while the maximum limit is ₹30 lakh. This limit applies to the aggregate balance across all SCSS accounts held by a single individual. Both spouses may open separate individual accounts or a joint account. If both individuals are eligible, they can each deposit up to ₹30 lakh into their respective accounts. If an individual deposits an amount exceeding the prescribed limit, the excess amount will be refunded. Interest on this excess amount will be calculated at the rate applicable to a Post Office Savings Account. What are the tax benefits?
The interest earned from an SCSS account is fully taxable. However, senior citizens can claim a deduction of up to ₹50,000 under Section 80TTB of the Income Tax Act.

When can an SCSS account be closed?
An SCSS account can be closed 5 years after the date of its opening. If the account has been extended for a period of 3 years, it can also be closed upon the completion of that extended period. In the event of the account holder's death, the account will subsequently earn interest at the rate applicable to a Post Office Savings Account until it is fully closed.

How can an SCSS account be extended?
Upon the completion of the initial 5-year tenure, an SCSS account can be extended for a further period of 3 years. To do so, an application must be submitted within one year of the date of maturity.

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