A senior citizen who invests ₹30 lakh in the Senior Citizens’ Savings Scheme (SCSS) can earn ₹61,500 every quarter at the current interest rate of 8.2% per annum. The rate, set by the Ministry of Finance, applies to the October-December 2026 quarter, the third quarter of FY 2026-27.
This translates into a monthly equivalent of ₹20,500. However, SCSS pays interest quarterly, not monthly.
designed to provide eligible senior citizens and retirees with a regular income stream. Here is a look at its interest calculation, investment limits, eligibility criteria and other key rules as of 9 October 2026.
How much interest will ₹30 lakh earn under SCSS?
The SCSS interest rate for the October-December 2026 quarter is . Interest is paid quarterly and credited on the first working day of April, July, October and January, as applicable.
|
Investment detail |
Amount |
|---|---|
| Investment amount | ₹30,00,000 |
| Annual interest rate | 8.2% |
| Interest in one year | ₹2,46,000 |
| Quarterly interest | ₹61,500 |
| Monthly equivalent | ₹20,500 |
| Five-year interest, assuming the rate remains unchanged | ₹12,30,000 |
For an investment of ₹30 lakh, the calculation is:
₹30,00,000 × 8.2% ÷ 4 = ₹61,500.
This works out to a monthly equivalent of ₹20,500, calculated by dividing the quarterly interest by three. However, investors receive the interest every quarter rather than every month.
Any five-year interest estimate based on the current rate is illustrative and assumes that the applicable rate remains unchanged throughout the investment period. The actual interest earned may differ if the applicable rate changes for subsequent deposits or extensions.
What are the SCSS eligibility rules and investment limits?
Individuals aged 60 years or above are eligible to open an . Retired civilian employees aged 55-59 may also qualify, subject to the prescribed retirement-related conditions and applicable investment timelines. Retired defence personnel may be eligible from the age of 50, subject to the relevant rules.
Prospective investors should check the latest eligibility criteria and scheme conditions on the official India Post website before investing.
|
SCSS feature |
Key rule |
|---|---|
| Minimum deposit | ₹1,000 |
| Maximum deposit | ₹30 lakh per individual |
| Tenure | 5 years |
| Extension | One extension of 3 years, subject to rules |
| Account type | Individual or joint account with spouse |
| Premature closure | Permitted, subject to conditions and applicable deductions |
| Tax on interest | Taxable under the applicable income-tax rules |
Note: Data taken from the official sources. For the latest updates, refer to the official website of India Post.
For joint accounts, the entire deposit is attributed to the first account holder when calculating the applicable investment limit.
Deposits under SCSS may qualify for a deduction under of the Income-tax Act, 1961, subject to the applicable tax regime and conditions. From tax year 2026-27, the Income-tax Act, 2025, replaces the 1961 legislation, with the corresponding provisions for eligible deductions set out under Section 123 read with Schedule XV, subject to the applicable conditions.
SCSS can help retirees plan predictable quarterly cash flows. However, investors should account for tax on interest income and the scheme’s withdrawal conditions. While the monthly equivalent of ₹20,500 can help with budgeting, the actual interest is received quarterly.
Disclaimer: Interest calculations are based on the SCSS interest rate of 8.2% applicable for October–December 2026. Interest is paid quarterly, not monthly. Tax liability and scheme rules are subject to applicable regulations. This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial adviser before investing.