Senior Citizen Savings Scheme Calculator

The SCSS interest rate is 8.2% per annum for Q1 FY 2026-27, revised every quarter by the Ministry of Finance. The rate is locked in for your tenure on the date of deposit, so subsequent quarterly revisions do not change the rate on an existing account. Interest is paid out on the 1st of January, April, July, and October every year — it is not compounded. The first interest payment is made on the next quarter-end after deposit, prorated for the days between the deposit date and the quarter-end.

Yes — SCSS interest is fully taxable as Income from Other Sources and added to your gross income at your marginal slab rate. Senior citizens can claim a deduction of up to ₹50,000 per year on interest income under Section 80TTB (this replaces the ₹10,000 Section 80TTA available to non-seniors). TDS is deducted by the bank or post office if total annual interest exceeds ₹1,00,000 (the senior-citizen threshold under Section 194A); submit Form 15H if your total income is below the basic exemption limit to avoid TDS. The deposit itself qualifies for a Section 80C deduction up to ₹1.5 lakh, which is shared with other 80C instruments such as PPF, EPF, and ELSS.

Yes — after the initial 5-year tenure ends, you may extend the account for a block of 3 years by submitting Form B to the bank or post office within one year of maturity. The extended account earns the prevailing SCSS rate on the date of extension (not the original locked-in rate). Since the 2023 amendment there is no limit on extensions — you can keep renewing in successive 3-year blocks, each applied for within one year of the relevant maturity date. During an extended block you may close the account at any time after one year without any penalty.

SCSS currently offers a higher rate (8.2%) than most senior citizen bank fixed deposits (typically 7.5%–8.0% in 2026). SCSS pays interest quarterly as guaranteed income with sovereign backing, and the principal qualifies for Section 80C deduction. Senior citizen FDs are more flexible (any tenure from 7 days to 10 years, cumulative or non-cumulative, can be opened at any bank), and 5-year tax-saver FDs also qualify for 80C — but the rate is usually lower. SCSS is generally the better choice for the income-and-safety bucket; FDs work well for shorter tenures, laddering across maturities, or when you need access to your principal sooner than 5 years.