Post Office Senior Citizen Savings Scheme (SCSS) 2025
The Post Office Senior Citizen Savings Scheme (SCSS) is a popular investment option for senior citizens looking for a safe and reliable source of income. The scheme offers an attractive interest rate of 8.20% per annum and government backing, which makes it an ideal choice for retirees seeking steady returns. It provides regular interest payouts and tax benefits under Section 80C.
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Post Office Senior Citizen Savings Scheme (SCSS) 2024
What is the Post Office Senior Citizen Savings Scheme (SCSS)?
The Post Office Senior Citizen Savings Scheme (SCSS) is a government-backed investment plan designed to provide regular income and financial security to senior citizens aged 60 or above. It offers a safe and attractive interest rate, with quarterly interest payments. The scheme has a tenure of 5 years, which can be extended by another 3 years.
The SCSS scheme allows investments up to ₹30 lakh, either individually or jointly with the spouse. It offers tax benefits under Section 80C, however, the interest earned is fully taxable.
Union Budget Update for Senior Citizens in FY 2024-25
Budget 2025 increased the TDS limit for interest earned by senior citizens (other than interest earned on securities) from ₹50,000 to ₹1,00,000. This would be effective from April 1, 2025.
Features of the Post Office Senior Citizen Saving Scheme (SCSS)
Following are the key benefits of investing in this small savings scheme for senior citizens offered by Post Office:
Feature
Details
Eligibility
Senior citizens aged 60 and above.
Investment Limit
Minimum ₹1,000; Maximum ₹30 lakh (single or joint).
Interest Rate
8.2% per annum (quarterly compounded) as of 2025.
Interest Payment
Quarterly (every 3 months).
Joint Account
Can be opened with spouse only. First depositor is the investor.
Number of Accounts
Multiple accounts can be opened, subject to the maximum investment limit.
Tenure
5 years.
Extension of Account
- Can be extended for 3 more years from the date of maturity. - Extension request must be submitted within 1 year of maturity. - Interest rate applicable on maturity date.
Tax Benefits
Deduction under Section 80C up to ₹1.5 lakh. Interest is taxable.
Premature Withdrawal
Available with penalty.
Nomination Facility
Available.
Excess Deposit
Excess deposit refunded immediately. PO Savings Account interest rate applies to the excess amount until refunded.
Safety
Backed by the Government of India.
Eligibility Criteria for Post Office Senior Citizen Savings Scheme
Age Requirement
Individuals aged 60 years or above.
Retired civilian employees ages 55-60. Investment made within 1 month of receiving retirement benefits.
Retired defense employees aged 50-60 years. Investment made within 1 month of receiving retirement benefits.
Account Types
Can be opened individually or jointly with a spouse.
In joint accounts, the entire deposit is attributed to the first account holder.
Ineligible Individuals
Non-Resident Indians (NRIs)
Hindu Undivided Families (HUFs).
Post Office Senior Citizen Interest Rates
The central government authorizes the SCSS interest rate on the Post Office Senior Citizen Scheme. Currently, it is 8.20% per annum (from April 01 2024 to March 31, 2025).
The following table shows the Post Office Senior Citizen interest rate in India:
Period
Rate of Interest (in % p.a.)
Aug 2, 2004 - Mar 31, 2012
9.0
Apr 1, 2012 - Mar 31, 2013
9.30
Apr 1, 2013 - Mar 31, 2015
9.20
Apr 1, 2015 - Mar 31, 2016
9.30
Apr 1, 2016 - Sep 30, 2016
8.60
Oct 1, 2016 - Mar 31, 2017
8.50
Apr 1, 2017 - Jun 30, 2017
8.40
Jul 1, 2017 - Sep 30, 2018
8.30
Oct 1, 2018 - Jun 30, 2019
8.70
Jul 1, 2019 - Mar 31, 2020
8.60
Apr 1, 2020 - Sep 30, 2022
7.40
Oct 1, 2022 - Dec 31, 2022
7.60
Jan 1, 2023 - Mar 31, 2023
8.00
Apr 1, 2023 - Mar 31, 2024
8.20
Apr 1, 2024 - Mar 31, 2025
8.20
SCSS Interest Payment Rules (2025)
Quarterly Payouts: Interest is paid every quarter on 31st March, 30th June, 30th September, and 31st December.
No Additional Interest: Unclaimed interest does not earn extra interest.
Withdrawal Options:
Auto-credit to a savings account in the same post office or via ECS.
For SCSS accounts in CBS post offices, monthly interest can be credited to any CBS post office savings account.
Taxation Rules under SCSS Scheme for FY 2025-26
Learn about the following tax rules before investing in Senior Citizen Savings Scheme (SCSS):
Section 80C Deduction:
Deduction of up to ₹1.5 lakh under the old tax regime.
Applicable only if the Section 80C limit is not exhausted by other investments.
Interest Income Taxability:
Interest earned is taxable as per the individual’s income slab.
Interest is paid quarterly.
Section 80TTB Deduction:
Deduction of up to ₹50,000 on interest income for senior citizens.
TDS on Interest:
No TDS if the total interest income is up to ₹1,00,000 per year.
If interest exceeds ₹1,00,000, TDS is deducted at 10% (with PAN) or 20% (without PAN).
Form 15G/15H can be submitted to avoid TDS if income is below the taxable limit.
Budget 2025 Update: TDS limit for senior citizens (excluding securities) raised from ₹50,000 to ₹1,00,000, effective April 1, 2025.
Premature Account Closure Rules for SCSS Scheme
Following are the premature SCSS account closure rules under this investment option:
Closure Anytime: The account can be closed any time after opening.
Closure Before 1 Year: No interest will be paid, and any interest already credited will be deducted from the principal.
Closure After 1 Year but Before 2 Years: A penalty of 1.5% of the principal amount will be deducted.
Closure After 2 Years but Before 5 Years: A penalty of 1% of the principal amount will be deducted.
Closure of Extended Account: If the account is extended, it can be closed after 1 year from the extension date without any deduction.
SCSS Account Closure on Maturity
The following points must be kept in mind when you close your SCSS account on maturity:
Closure After 5 Years: The account can be closed after 5 years by submitting the prescribed application form along with the passbook at the concerned post office.
In Case of Account Holder’s Death: From the date of death, the account will earn interest at the Post Office Savings Account rate.
For Joint Holder or Nominee (Spouse): If the spouse is a joint holder or the sole nominee, they can continue the account till maturity, provided they are eligible for SCSS and do not hold another SCSS account
Documents Required for Post Office Senior Citizen Saving Scheme (SCSS)
To make an investment in Post Office Senior Citizen Saving Scheme, the following documents need to be submitted by the applicants:-
Fill out the application form available at the Bank or Post office
Fill the Know Your Customer (KYC) form
Provide the following documents-
Permanent Account Number (PAN) Card
Recent Photograph
Aadhaar Card
Voter ID
Passport
Driver's license
Also, the Applicant’s Employer Certificate mentioning the retirement VRS or Superannuation needs to be submitted.
How to Open a Senior Citizen Saving Scheme in the Post Office?
Following are the steps to open a Senior Citizen Savings Scheme (SCSS) account at a post office in India:
Step 1- Visit the Nearest Post Office: Go to your nearest post office branch to open an SCSS account.
Step 2- Collect and Fill the Application Form: Obtain the SCSS application form from the post office or download it from the India Post website.
Fill in details like the post office branch name, your account number (if you have a savings account), and personal information.
Attach two passport-sized photographs, along with address, contact, and age proof.
Step 3- Submit the Application with Documents: Submit the completed form along with required documents:
Proof of Initial Deposit: Cash (if under ₹1 lakh) or cheque (if over ₹1 lakh).
Nomination Details: You can nominate one or more individuals for the account balance.
Step 4- Deposit Amount: The minimum deposit is ₹1,000, and the maximum is ₹30 lakh. You can deposit through cash or cheque.
Step 5- Processing and Account Opening: The post office will process your request and open the SCSS account. You will receive an account passbook or statement.
Step 6- Signatures and Nominee Information: Ensure all account holders sign the application form. Also, provide nominee details, and ensure all signatures are valid.
Online Option: While SCSS can be opened online at banks, post offices do not offer online account opening. You need to visit the branch.
Can You Open Multiple Accounts Under SCSS?
It is important to know that the Post Office Senior Citizen Scheme provides the option to deposit the funds into your account in a lump sum. As a result, you can also open more than one account under the SCSS scheme, given that the total amount deposited does not exceed the maximum limit of Rs. 30 lakhs. However, opening multiple accounts in the same deposit branch is prohibited within the same calendar month.
Benefits of the SCSS Scheme
The key benefits of investing in the Senior Citizen Savings Scheme (SCSS) are as follows:
Safe and Secure: The SCSS is backed by the Government of India, ensuring a low-risk and secure investment.
Attractive Interest Rates: It offers higher interest rates compared to regular savings accounts, making it a rewarding option.
Regular Income: The interest is paid quarterly, providing you with a consistent stream of income.
Ideal for Senior Citizens: The scheme is perfect for senior citizens seeking stability and guaranteed returns.
Easy to Open: You can easily open an SCSS account at post offices or designated banks across India.
Flexible Investment Options: You can choose between a 5-year or a 10-year investment term based on your financial goals.
Liquidity: The scheme allows premature withdrawal after 1 year, with a penalty, offering flexibility when needed.
Sum It Up
The Post Office Senior Citizen Savings Scheme is a great option for seniors looking for a safe and steady income. It offers good interest rates, regular payments, and government-backed security. With a 5-year term and the option to extend, it ensures reliable savings. As of 2025, the interest rate is 8.2%, making it a strong choice for low-risk growth.
FAQs
Who is eligible for the SCSS?
Individuals aged 60 and above are eligible for a Post Office SCSS account. Early retirees above 55 (through VRS or superannuation) can also apply.
What is the minimum and maximum deposit amount?
The minimum deposit amount of Post Office Senior Citizen Savings Scheme is Rs. 1,000 with subsequent deposits in multiples of Rs.1,000. The maximum deposit limit is Rs. 30 lakh across all SCSS accounts held by an individual.
What is the current interest rate offered by SCSS?
The government revises the SCSS interest rate quarterly. As of February 2025 (Q3 FY 2024-25), the rate is 8.2% per annum.
How often is the SCSS interest paid?
The interest on your Post Office Senior Citizen Savings Scheme account is credited quarterly.
Is there a tax benefit on SCSS deposits?
Yes, deposits up to Rs.1.5 lakh qualify for a tax deduction under Section 80C of the Income Tax Act.
Can I open a joint SCSS account?
Yes, you can open a joint account with your spouse only under the Post Office Senior Citizen Savings Scheme. However, the entire deposit amount will be attributed to the first account holder for tax purposes.
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^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
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Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
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