SCSS Calculator
Estimate the quarterly income and total interest from a Senior Citizen Savings Scheme deposit.
Statutory range: ₹1,000 – ₹30,00,000, in multiples of ₹1,000.
Government-notified, revised quarterly — pre-filled with the current rate.
5-year standard term, extendable once by 3 years.
Quarterly payout
₹30,750.00
Total interest over 5 years: ₹6,15,000
SCSS tips
- Compare SCSS's quarterly payout against a non-cumulative FD's payout for the same deposit.
- Factor in tax: SCSS interest is fully taxable, so your actual take-home payout is lower than what's shown.
- You can extend the account once by 3 years after the standard 5-year term ends.
How it's calculated
Unlike PPF, SSY or an FD, SCSS does not compound — interest is paid out every quarter rather than added back to the principal. So the quarterly payout stays the same throughout the tenure, and your total interest is simply that payout multiplied by the number of quarters.
Quarterly payout = Deposit × annual rate ÷ 4
Total interest = Quarterly payout × 4 × tenure in years
Example
A ₹15,00,000 deposit at 8.2% pays roughly ₹30,750 every quarter — over the standard 5-year term, that's ₹6,15,000 in total interest, with your original ₹15,00,000 returned at maturity.
About the Senior Citizen Savings Scheme
SCSS is a government-backed scheme built specifically to give senior citizens a predictable, regular income stream from their retirement savings, at one of the highest rates among small savings schemes. It's a 5-year term, extendable once by 3 years.
How it works
You deposit a lump sum of ₹1,000 to ₹30,00,000, in multiples of ₹1,000. The government sets and revises the interest rate quarterly. Interest is paid out to you every quarter — it is not reinvested — and your original deposit is returned in full at maturity.
How to use it
- Set your deposit amount (₹1,000 minimum, ₹30,00,000 maximum, in multiples of ₹1,000).
- The interest rate is pre-filled with the current government-notified rate.
- Set the tenure: 5 years is the standard term; extend to 8 to model the one allowed 3-year extension.
Strategies
Because SCSS doesn't compound, the same deposit at a higher rate elsewhere (like a cumulative FD) can grow to more by maturity — but SCSS's advantage is the guaranteed, predictable quarterly income, which suits someone who needs regular cash flow rather than a lump sum at the end. Comparing SCSS's quarterly payout against a non-cumulative FD's payout is a useful sanity check before committing.
Important caveats
- SCSS interest is fully taxable at your income slab rate — the payouts shown are pre-tax.
- Premature withdrawal is allowed after 1 year, subject to a penalty that reduces the effective return — this calculator assumes the account runs its full chosen tenure.
- The interest rate is fixed for this projection but is revised by the government every quarter — an extension after 5 years applies the rate in effect at that time, not today's rate.
Why it works
Because SCSS pays interest out every quarter instead of compounding it, the maths is simple interest rather than the compound-interest formulas used by PPF, SSY or FD — the payout is a fixed fraction of the deposit every quarter, for as long as the account runs.
Benefits
- One of the highest interest rates among government-backed small savings schemes.
- Regular, predictable quarterly income — well suited for retirement cash flow.
- Government-backed principal and interest — no market risk.
Frequently asked questions
Why does SCSS pay interest quarterly instead of compounding it?
SCSS is designed as a regular-income scheme for senior citizens, so interest is paid out to you every quarter rather than reinvested. That means your principal never grows — you receive a steady quarterly payout, and get your original deposit back in full at maturity.
Who is eligible to open an SCSS account?
Indian residents aged 60 and above, or 55+ for those who have retired under a voluntary or special retirement scheme (with some conditions for retired defence personnel). A joint account is allowed only with a spouse.
Can I extend my SCSS account beyond 5 years?
Yes — once, by 3 years, for a maximum total tenure of 8 years. The extension must be applied for within a year of the original maturity date, and the interest rate applicable to the extension is the rate in effect at the time of extension.
Learn more from official sources
- India Post — Savings Schemes — official rate notifications for SCSS and other post-office schemes.
- National Savings Institute — Ministry of Finance body overseeing small savings schemes.
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