Senior Citizens Savings Scheme
SCSS quarterly income and maturity
Worked example
Using the default values, senior citizens savings scheme gives a income every quarter of ₹30,750.
| Item | Value |
|---|---|
| Deposit | ₹15,00,000 |
| Rate | 8.2% a year, paid quarterly |
| Every quarter | ₹30,750 |
| Every year | ₹1,23,000 |
| Every month, averaged | ₹10,250 |
| Over 5 years | ₹6,15,000 |
| Returned at maturity | ₹15,00,000 |
| Total received | ₹21,15,000 |
What you need
- Deposit
- Interest rate
- Term
Questions
Is SCSS interest taxable?
Yes, fully, at your slab rate. Senior citizens can claim up to ₹50,000 of interest income as a deduction under section 80TTB in the old regime.
Does the interest compound?
No. It is paid out every quarter, which makes SCSS an income product rather than a growth one. If you do not need the income, a scheme that compounds will end up larger.
Important
Open to anyone aged 60 or above, or 55 to 60 on superannuation or voluntary retirement, or 50 for defence personnel. The ceiling is ₹30 lakh. Interest is paid out quarterly rather than compounded, and is fully taxable at your slab — TDS applies once it crosses the annual threshold. The five-year term can be extended once by three years. Premature closure costs 1.5% of the deposit before two years and 1% after.