The Senior Citizen Savings Scheme (SCSS) is a special savings plan for people aged 60 and above. It’s one of the safest and most rewarding ways for seniors in India to earn regular income after retirement.
Interest Rate for SCSS in 2025
As of July–September 2025, the SCSS interest rate is 8.2% per year.
This means if a senior deposits ₹1 lakh, they’ll earn ₹8,200 per year as interest.
The interest is paid every 3 months, directly to the person’s bank account.
The interest rate is set by the Government of India and reviewed every quarter.
Eligibility for SCSS
You can open an SCSS account if you are:
- 60 years or older
- Retired government or defense employee aged 55–60 (conditions apply)
- An Indian resident (NRIs and HUFs are not allowed)
Key Features of SCSS
- Safe and Government-Backed
Your money is completely safe since this scheme is run by the Government of India. - Attractive Interest Rate
8.2% is much higher than regular savings or fixed deposits. - Quarterly Payouts
Interest is paid every 3 months, providing regular income for seniors. - Investment Limit
- Minimum: ₹1,000
- Maximum: ₹30 lakh (as of 2025)
- Account Duration
The account runs for 5 years, with an option to extend it for 3 more years. - Tax Benefits
You can claim up to ₹1.5 lakh under Section 80C.
However, if your interest exceeds ₹50,000 per year, TDS (tax) may be deducted.
How to Open an SCSS Account
You can open it at:
- Any post office
- Most public and private banks
Just carry your PAN card, Aadhaar card, age proof, and a passport-size photo.
Real-Life Example
Ramesh, a 65-year-old retiree, invests ₹15 lakh in SCSS. Every 3 months, he receives around ₹30,750 as interest. This regular income helps him manage his household expenses comfortably.
