SCSS Interest Rate (Senior Citizens Savings Scheme)

The Ministry of Finance sets small savings rates every quarter. For July–September 2026 the Senior Citizens Savings Scheme pays 8.2% a year, quarterly. The rate was the same in every quarter from October–December 2024 to July–September 2026.

Rules.

• Term: 5 years; extendable by 3 years
• Minimum deposit: ₹1,000 (multiples of ₹1,000)
• Maximum: ₹30 lakh (all SCSS accounts of an individual)
• Individual above 60; retired civilian 55–60 and defence 50–60 within 1 month of retirement benefits.
• Single or joint with spouse only.
• Interest paid 1 Apr/1 Jul/1 Oct/1 Jan; unclaimed interest earns nothing.
• Closure before 1 year: no interest; 1–2 years: 1.5% deduction; 2–5 years: 1% deduction.
• Extension for 3 years within 1 year of maturity.

Tax. Section 80C (now section 123 of the Income-tax Act, 2025) eligible; interest taxable, TDS if total SCSS interest exceeds ₹50,000 in FY. India Post states these rules under the Income-tax Act, 1961; from 1 April 2026 the Income-tax Act, 2025 applies with new section numbers.

Questions

What is the Senior Citizens Savings Scheme interest rate now?

8.2% a year for July–September 2026, as notified by the Ministry of Finance.

How is the interest paid?

Interest paid quarterly, not compounded.

Compare every scheme in the small savings interest rates table.