Post Office Senior Citizen Savings Scheme (SCSS) Calculator

Secure your retirement by estimating your regular quarterly interest income.

Calculate Your Quarterly Interest

Note: The SCSS interest rate is set by the government and reviewed quarterly. The rate is fixed for the entire tenure at the time of investment. Please visit the official Post Office website for the most current rates.

All About the Senior Citizen Savings Scheme (SCSS)

The Senior Citizen Savings Scheme (SCSS) is a premier, government-backed investment vehicle crafted specifically to provide India's senior citizens with a secure, reliable, and consistent source of income post-retirement. Renowned for its high safety standards, attractive interest rates, and substantial tax benefits, SCSS stands out as a top choice for retirees looking to park their lump-sum retirement corpus in a dependable instrument that generates regular cash flow.

Who Can Invest in SCSS?

Eligibility for the scheme is tightly defined to benefit its target demographic:

  • Indian Residents aged 60 or above: Any Indian citizen who has reached the age of 60 can open an SCSS account.
  • Early Retirees (55-60 years): Individuals who have retired on superannuation or under a Voluntary Retirement Scheme (VRS) can invest, provided they open the account within one month of receiving their retirement benefits.
  • Retired Defense Personnel: Retired personnel from the defense services are also eligible, subject to certain age and service conditions, irrespective of the above age limits.
  • Note: Non-Resident Indians (NRIs) and members of a Hindu Undivided Family (HUF) are not eligible to open an SCSS account.

Investment & Deposit Rules

  • Single Deposit: The scheme allows only a single deposit in the account, in multiples of ₹1,000. No further deposits can be made into the same account.
  • Investment Limits: A minimum of ₹1,000 and a maximum of ₹30 lakh can be invested. The amount invested cannot exceed the retirement benefits received.
  • Account Type: An account can be held individually or jointly, but only with a spouse. In a joint account, the first depositor is the primary investor, and the age limit applies only to them.

Interest Rate & Payouts

  • Fixed Rate of Interest: The interest rate applicable at the time of your deposit remains fixed for the entire 5-year tenure, shielding you from future rate cuts.
  • Quarterly Payouts: Interest is calculated and paid out on a quarterly basis. The payments are made on the first working day of April, July, October, and January.
  • No Compounding: It is important to note that the interest is not compounded. It is paid out directly to the depositor's linked Post Office Savings or bank account and does not accumulate in the SCSS account.

Maturity, Extension, and Premature Closure

  • Maturity Period: The scheme has a lock-in period of 5 years from the date of opening.
  • Account Extension: After maturity, the account can be extended for a further block of 3 years. This request must be made within one year from the date of maturity. The interest rate for the extended period will be the rate prevailing on the date of maturity.
  • Premature Closure: While early withdrawal is discouraged, it is permitted with a penalty:
    • After 1 year but before 2 years: A penalty of 1.5% of the principal amount is deducted.
    • After 2 years but before 5 years: A penalty of 1% of the principal amount is deducted.

Nomination Facility

Investors can nominate one or more persons as beneficiaries. The nomination can be made at the time of account opening or at any point during the tenure. This ensures a smooth transfer of funds to the nominee(s) in the unfortunate event of the account holder's demise.

Tax Implications of SCSS

Understanding the Tax Rules:

The SCSS offers a unique blend of tax benefits on investment and tax liability on earnings:

  • Tax Deduction under Section 80C: The amount invested is eligible for a tax deduction of up to ₹1.5 lakh per financial year under Section 80C of the Income Tax Act, 1961. This helps in reducing your overall tax liability in the year of investment.
  • Taxable Interest Income: The quarterly interest you earn is fully taxable. It is added to your total income for the year and taxed according to your applicable income tax slab.
  • TDS (Tax Deducted at Source): If your total interest income from the SCSS account exceeds ₹50,000 in a financial year, the Post Office is required to deduct TDS before crediting the interest to your account.
  • Avoiding TDS with Form 15H: To prevent this TDS deduction, senior citizens whose total income (including the interest) is below the taxable threshold can submit Form 15H. This form should be submitted at the beginning of each financial year to the post office where the account is held.