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Retirement Schemes

Post Office SCSS Scheme Guide

A complete overview of the Post Office Senior Citizen Savings Scheme (SCSS) — secure high-interest income for senior citizens with quarterly payouts and tax benefits.

Published: 30 Jun 2025
Reading Time: 5 min read
Expert Analysis
#SCSS#Senior Citizen Savings Scheme#Post Office#Savings#Retirement Planning

Complete Investment Guide

Comprehensive analysis with actionable insights for smart investment decisions

Post Office Senior Citizen Savings Scheme (SCSS)

The Post Office Senior Citizen Savings Scheme (SCSS) offers safe, high-interest earnings for senior citizens, providing financial security post-retirement with quarterly interest payouts and tax-saving benefits under Section 80C.


Key Highlights

8.2% per annum interest, paid quarterly
✅ Investment in multiples of ₹1000 up to ₹30 lakh
✅ Safe, government-backed investment
✅ Tax benefits under Section 80C
✅ Ideal for retirees seeking stable income


Latest Interest Rate (From 01 Jan 2024)

  • 8.2% per annum, payable quarterly.

Interest is payable from the date of deposit to the next quarter-end (31 March, 30 June, 30 September, 31 December) and on the first day of each subsequent quarter.


Salient Features

(a) Who Can Open:

  • Individuals aged 60 years and above
  • Retired Civilian Employees (55–60 years), within 1 month of receiving retirement benefits
  • Retired Defense Employees (50–60 years), within 1 month of receiving retirement benefits
  • Accounts can be opened individually or jointly with a spouse (full deposit attributed to the first holder)

(b) Deposit:

  • Minimum: ₹1000; in multiples of ₹1000
  • Maximum: ₹30 lakh in all SCSS accounts held by an individual
  • Excess deposits will be refunded, and PO Savings Account interest will apply from the date of excess deposit to the date of refund
  • Eligible for Section 80C tax benefits

(c) Interest:

  • Payable quarterly: 1 April, 1 July, 1 October, 1 January
  • Unclaimed interest does not earn additional interest
  • Can be credited automatically to a Post Office Savings Account or via ECS
  • Interest is taxable:
    • TDS applies if total interest across SCSS accounts exceeds ₹50,000 in a financial year
    • Submit Form 15G/15H to avoid TDS if within the limit

(d) Premature Closure:

  • Allowed anytime after opening
  • If closed before 1 year:
    • No interest payable; paid interest recovered from principal
  • If closed after 1 year but before 2 years:
    • 1.5% of principal deducted
  • If closed after 2 years but before 5 years:
    • 1% of principal deducted
  • Extended accounts can be closed after 1 year from extension without deductions

(e) Maturity and Closure:

  • The account matures after 5 years from the date of opening
  • On the depositor’s death:
    • The account earns PO Savings Account interest from the date of death
    • If the spouse is a joint holder/nominee and eligible, the account can continue until maturity without interruption

(f) Extension of Account:

  • Extendable for 3 years after maturity
  • Extension request to be submitted within 1 year from maturity
  • Extended accounts earn interest at the rate applicable on the maturity date

Why Choose Post Office SCSS?

Secure high-interest returns for retirees
Quarterly payouts for regular income
Capital safety with government backing
Tax-saving benefits under Section 80C
Simple management at your nearest Post Office


The Post Office Senior Citizen Savings Scheme is a reliable option for senior citizens and retirees to secure steady, high-interest income while preserving their capital safely. Start your investment in SCSS today to ensure a stress-free retirement with financial stability.


This guide provides comprehensive information for educational purposes. Always consult with financial advisors before making investment decisions.

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