SCSS

Full form: Senior Citizen Savings Scheme

Retirement

SCSS is a government-backed savings scheme exclusively for senior citizens (60+ years) offering the highest guaranteed returns among small savings schemes. Current rate: 8.2% per annum, paid quarterly. Maximum investment: Rs 30 lakh per individual (Rs 60 lakh for couple). Available at post offices and select banks.

In detail

SCSS features:nEligibility: 60+ years; 55+ if VRS/superannuation; 50+ if defence personnelnTenure: 5 years (extendable by 3 years once)nPayment: quarterly interest (March, June, September, December)nPremature withdrawal: after 1 year (penalty applies)nTax benefit: Rs 1.5L qualifies for Section 80C deductionnTDS: TDS deducted if annual interest exceeds Rs 50,000 (submit Form 15H to avoid TDS)nMaximum deposit: Rs 30L per person, Rs 60L jointly with spouse

Formula

Quarterly interest = Principal x 8.2% / 4nRs 30L x 8.2% / 4 = Rs 61,500 per quarter = Rs 2,46,000/year

Real-life example

🇮🇳 India example

Retired couple: husband invests Rs 30L + wife invests Rs 30L in SCSS = Rs 60L combined. Annual interest: Rs 30L x 8.2% + Rs 30L x 8.2% = Rs 4,92,000/year = Rs 41,000/month guaranteed. Both submit Form 15H (income below taxable limit) to avoid TDS. This forms the backbone of their retirement income.

Frequently asked questions

Can I invest more than Rs 30L in SCSS by opening multiple accounts? ▼

No. The Rs 30L limit is per individual across all SCSS accounts (post office + banks combined). However, if your spouse is also 60+, they can independently invest Rs 30L in their own SCSS. Total family limit: Rs 60L (Rs 30L each).