Senior Citizen Savings Scheme: SCSS Interest Rate, Eligibility and Rules

Posted on Tuesday, March 18th, 2025 | By IndusInd Bank

Retirement marks a significant life change that brings a shift in financial priorities. In the absence of a salary or a steady income source, it is important to ensure financial security and well-being. The Senior Citizen Savings Scheme or SCSS can be a useful investment option in this regard.

Let’s learn more about it. 

Understanding Senior Citizen Savings Scheme

The Senior Citizen Savings Scheme is a government-backed savings instrument that aims to provide senior citizens with a reliable and secure source of income. 

It is one of the most popular saving schemes among retirees for its safety and the attractive returns it offers. One can open a SCSS account at any post office or authorised banks across the country. The scheme has a maturity period of 5 years. Investors can extend this by another 3 years.

Interest Rates for Senior Citizen Savings Scheme

Currently, the Senior Citizen Savings Scheme interest rate from 1st April 2023 to 30th September 2024 is 8.20%. 

The investor will receive the first interest instalment on the 31st of March/30th of June/30th of September/31st of December, counting from the date of deposit. Subsequent instalments will be credited quarterly on the first date of April, July, October, and January.

Eligibility Criteria for Senior Citizen Savings Scheme

To invest in the SCSS, you must meet the following eligibility criteria:

• The Senior Citizen Savings Scheme is open to Indian residents aged 60 years and above.

• Retirees who have opted for voluntary retirement or superannuation can also invest. However, they must do so within one month of receiving their retirement benefits and must be at least 55 years but less than 60 years.

• Defence personnel eligible for the scheme can invest at the age of 50 years.

• A minimum deposit of ₹ 1,000 is required to open an SCSS account, and the maximum limit is Rs. 30 lakhs (increased from ₹ 15 lakhs in Budget 2023). 

• An individual can open more than one account, either individually or jointly with their spouse. 

SCSS Rules To Know Before Investing

It is important to understand the following rules before investing in the Senior Citizen Savings Scheme:

• One can make a premature withdrawal within a year. However, the interest paid is recovered from the principal amount. If a withdrawal is made before two years, 1.5% of the deposit is deducted as a penalty. If done after two years, the penalty is 1%.

• The investment in SCSS qualifies for tax deduction under Section 80C of the Income Tax Act. However, TDS is applicable if the interest amount exceeds ₹ 50,000 per annum.

• You can nominate a beneficiary for the SCSS at the time of opening the account or later. 

• One can also transfer their SCSS from one post office to another or from one bank to another.

• Non-Resident Indians (NRIs) and Hindu Undivided Families (HUFs) are ineligible to open an SCSS account. 

Also Read: How to Save for Your Retirement with a Savings Account

Conclusion

The Senior Citizen Savings Scheme (SCSS) is a secure investment option for senior citizens. It offers attractive interest rates and the safety of government backing.

While the SCSS deserves your consideration, you must also have the right banking partner to make your financial management easier.

IndusInd Bank makes investing in the SCSS scheme convenient. With a range of savings account options, including a zero balance savings account, managing your finances and maximising your savings is easier than ever. IndusInd Bank offers competitive interest rates, an easy application process, seamless digital banking services, and more. These features not only make it easy to manage your SCSS account but also help your money grow effectively.

Open a Bank Account with IndusInd Bank today and secure your financial future today! 

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.