Retirement should be about peace of mind and financial dignity. The Senior Citizen Savings Scheme (SCSS) is the Indian Government's flagship program to ensure retirees earn a high, steady income. As of 2026, it offers one of the highest interest rates among all small savings schemes.

Current SCSS Interest Rate (2026)

🌟 Interest Rate: 8.2% p.a.

The government has declared an interest rate of 8.2% for the quarter ending March 2026. Unlike accumulative schemes, SCSS pays this interest Quarterly directly to your bank account.

Investment Limit: ₹30 Lakhs

From FY 2023-24 onwards, the deposit limit was doubled. In 2026, you can deposit:

  • Maximum: ₹30 Lakhs per individual.
  • Joint Account: Husband and Wife can each open individual accounts, effectively depositing ₹60 Lakhs as a couple!

SCSS Quarterly Income Calculator 2026

How much pension-like income will you get every 3 months (April, July, Oct, Jan)?

Investment Amount Quarterly Payout (Every 3 Months) Yearly Income
₹5 Lakhs ₹10,250 ₹41,000
₹10 Lakhs ₹20,500 ₹82,000
₹15 Lakhs ₹30,750 ₹1.23 Lakhs
₹20 Lakhs ₹41,000 ₹1.64 Lakhs
₹30 Lakhs (Max) ₹61,500 ₹2.46 Lakhs

Eligibility & Rules

  • Age: 60 years or above.
  • VRS/Superannuation: 55-60 years (Must open within 1 month of receipt of benefits).
  • Defense Personnel: 50 years or above.
  • Tenure: 5 Years (Extendable by 3 years).

Tax Benefits

  • Investment: Eligible for Section 80C deduction (up to ₹1.5 Lakh).
  • Interest: Taxable. TDS is deducted if interest exceeds ₹50,000/year. However, you can submit Form 15H if your total income is below the taxable limit.

Conclusion

With 8.2% interest and complete capital safety, SCSS is superior to most Bank FDs in 2026. A retired couple investing ₹60 Lakhs (combined) can earn ₹4.92 Lakhs per year (approx ₹41,000 per month) purely from interest!