Senior Citizen Saving Scheme (SCSS) In India: Interest Rate, Tax Benefits, and How to Invest in 2025

The Senior Citizen Savings Scheme (SCSS) is a savings option introduced by the Government of India to provide regular income to individuals aged 60 years and above. Under the SCSS scheme, one can invest up to 30 lakh and earn a high interest rate of 8.2% per annum as of 2025. It is a safe and reliable scheme for retired people to manage their retirement savings. This scheme has a tenure of 5 years, can be extended to 3 years, and also offers tax benefits under section 80C. The senior citizen saving scheme interest rate makes it a smart and secure choice for retirees looking for stable returns and peace of mind.

What is the Senior Citizen Savings Scheme?

The Senior Citizen Saving Scheme (SCSS) is a simple plan by the Government of India under the Government Savings Promotion Act, 1873, for people aged 60 and above. It helps people keep their money safe and earn a regular income after retirement. The SCSS interest rate is 8.2 % annually, better than most banks’ fixed deposits. You get interest every 3 months, and it is a secure and smart way to grow your savings.

Features of the SCSS Scheme

Looking for a safe way to earn after retirement? The senior citizen saving scheme is the perfect choice. It is a government-backed scheme and is specially made for senior citizens. Check the features below to understand in a better way:

• Minimum Deposit: People can start the scheme with just ₹1,000, making it easy and affordable for every senior citizen to invest.
• Maximum Deposit: People can invest for up to ₹30 lakh, helping people to save a large retirement amount.
• Rate of Interest in SCSS: SCSS offers a high interest rate of 8.2% per annum, better than a fixed deposit.
• Interest Payment: Senior citizens receive interest directly into their accounts every three months, giving them a regular income to manage their monthly expenses. 
• Lock-in Period: The money stayed locked in for 5 years, but it can also be extended for another 3 years for continued benefits.
• Government Backed Safety: The scheme is backed by the Government of India, making it a safe and trusted option for senior citizens. 
• Tax Benefits: People can also claim tax deduction under Section 80C, which helps save money on their annual income tax.

Benefits of SCSS

Here are some details about the Senior Citizen Savings Scheme which will help you understand its benefits.

1. Government-backed Scheme – Since the scheme is backed by the Government there is no question about its safety and reliability.
2. Accessibility–You are not dependent on any particular financial institution for setting up a Senior Citizen Savings Scheme. You can set it up in a Bank or a Post office.
3. Country-wide Portability– You can easily move the account anywhere across India. This means that you don’t have to worry about the account if you are planning to move across the states to settle down with your children.
4. High-Interest Rate–The post office senior citizen scheme promises higher rates of interest than any other Savings Scheme.
5. Tax Benefits – under Section 80C of the Indian Tax Act, 1961.
6. Short-Time Maturity –The account can be kept open for another 3 years after the first 5 years are up.

SCSS Eligibility: Who can Open an SCSS Account?

If you are eligible, you can Open an SCSS Account in ANY Bank or Post Office. Some banks even allow you to open an SCSS account via the bank's website or mobile banking app. The Post Office does not offer a way to open an SCSS account online, Hence it is better to open a Senior Citizen Savings account in a bank where you have a savings account.

You can open the account individually or jointly with your spouse. But the deposit amount in the joint account will only be attributed to the first account holder.

How to Open an SCSS Account

Opening an SCSS account is simple and can easily be done at any bank or any post office. Follow the simple steps below, and you will also get all the important SCSS scheme details during the process:

• Visit the nearest post office or the nearest bank: Choose any authorised bank that is offering SCSS facilities. 
• Ask & Fill Form A: Get the SCSS application form and fill it with personal account details
• Attach Required Documents: Submit the Aadhar card, PAN card, age proof and passport size photograph
• Deposit your money: Pay a minimum of ₹1000 and a maximum of ₹30 lakh via cash or cheque
• Submit & Collect Proof: Once everything is submitted and verified, you will get your passbook confirming your SCSS account.

Documents Required for Creating an SCSS Account

Here are the documents that you must submit to create an SCSS account. All the documents should be self-attested.

• Passport size photos
• Identity Card– Passport or PAN card.
• Address Proof–Aadhaar card or a phone bill.
• Proof of Age– For this, you can use PAN, Voter ID, Birth Certificate, Senior Citizen Card, or Passport.

Fill out this form(Form-I Application for opening an SCSS Account) and submit it along with the above-mentioned documents at your nearest post office or bank of your choice, and the procedure for creating an SCSS account will be initiated.

Minimum Amount for Opening an SCSS Account

To open an SCSS account you can make a single deposit, with the amount being a multiple of ₹1000. But the maximum amount must not exceed ₹1 lakh. 

Depositing Money in the Senior Citizen Savings Scheme

You can start an SCSS account with a minimum deposit of ₹1000. You must deposit the amount in multiples of ₹1000. The highest that you can deposit is ₹15 Lakh. If you deposit more than that the excess amount will be refunded immediately. Also, the interest rate will get downgraded to a Post Office Savings Scheme Interest Rate (4% per annum)

Investments you make under this scheme qualify for tax benefits as per Section 80C of the Income Tax Act.

Closing the SCSS Account on Maturity

The SCSS scheme can either be closed after maturity or before maturity, depending on your needs. While it is best to run the scheme for its full term or maybe extend it for 3 more years, the government also allows early closure. Below are the steps to follow:

• Go to the bank or post office where you opened the account
• Ask for the closer form for Form E and fill in the details and the reason.
• Submit the SCSS passbook, valid ID proof & Aadhar card
• Pay the closing charges if any (After 1 year or before 2 years a 1.5% of the depost is deducted)
• After the processing, the principal + interest (after deduction) is paid to your account

Best Banks/Post Offices to Open SCSS Account

Want to keep your retirement money safe and earn a steady return? One of the best spots is the post office savings scheme for senior citizens and banks. Below is the list of all the post offices and banks to check:

• Indian Post (Post Office)
• State Bank of India (SBI)
• Punjab National Bank (PNB)
• HDFC Bank
• ICICI Bank
• Bank of Baroda (BoB)
• Canara Bank

Recent Updates in SCSS (2024–2025)

In 2024-2025, the Senior Citizen Savings Scheme (SCSS) continues to offer safe and high-interest investment options for retired people. YEIDA’s approval of affordable housing near Noida International Airport for the EWS category is an important development impacting the scheme's relevance. With the airport and industrial zones expanding, housing and lifestyle infrastructure like recreational areas, a golf course and a gymkhana club are being planned to support workers and families. These changes reflect the growing ecosystem and encourage retired people to invest in secure plans like SCSS, while staying close to their families. 

SCSS Account Extension

You can extend the account up to 3 years from the date of maturity, without having to suffer any changes in the interest rate. To do this you have to submit this form(Form-4 Application for extension of account) after filling it out at the concerned post office or bank.

If you want to extend the account you have to do this within one year from the maturity of the deposit.

How Can NoBroker Help?

The SCSS scheme is an excellent option for people who feel that they started investing and saving late. We recommend that you reach out to the older adults in your family and help them start Senior Citizen Savings Scheme Accounts in banks or post offices near you.

Retirement Planning and Savings can be a tough ordeal for a lot of people. We recommend that you check out our extensive collection of articles on Investments and Savings– that should get you started. Prioritise Real Estate Investments if you are aiming for a stable post-retirement life. Call NoBroker Now to buy properties in the best cities of India.

Frequently Asked Questions