How this calculator works
- Step 1One deposit₹30,00,000.00Up to ₹30 lakh, in multiples of ₹1,000.
- Step 2Rate fixed on deposit day8.2%It does not change until maturity.
- Step 3Paid every quarter₹61,500.00Credited on 1 April, July, October and January.
- Step 4Deposit back at 5 years₹30,00,000.00Or extend in 3-year blocks.
The Senior Citizens Savings Scheme is a government deposit for people aged 60 and over, and some retirees from 55. You make one deposit, and the interest is paid out to your savings account every quarter.
Because the interest is paid out, it does not compound inside the account. Each quarter pays one quarter of the yearly rate on the deposit, and the deposit itself comes back at maturity.
Worked example: the ₹30 lakh maximum
- Each quarter
deposit × rate ÷ 4- Over the term
quarterly payout × quarters held
- Deposit₹30,00,000.00
- Interest each quarter₹30,00,000.00 × 8.2% ÷ 4₹61,500.00
- Interest each year₹2,46,000.00
- Interest over 5 years (20 quarters)₹12,30,000.00
A ₹10 lakh deposit pays ₹20,500.00 a quarter. The payout is proportional to the deposit and to the rate.
Closing early costs money
- Paid back
- Interest kept
Close within a year and every rupee of interest already paid is taken back from the deposit. In the second year, 1.5% of the deposit is deducted; from two years until maturity, 1%.
Extending after five years
- Hold all 8 years₹2,96,000.00Interest over 32 quarters; no deduction.
- Close at 5½ years₹5,000.00Deducted for closing within a year of the extension.
You can extend any number of times, in 3-year blocks, by applying within a year of maturity. The extension earns the rate in force on the maturity date, not your original rate.
Reading the result and its limits
The quarterly figure is exact for a full quarter at a fixed rate; the first payment covers only the days from your deposit to the quarter end.
The calculator assumes the deposit is made on the first day of a quarter and counts whole quarters. Interest is shown before tax. TDS and your income-tax slab are not modelled.
Other income options
SCSS pays interest every quarter. Other schemes pay monthly or at maturity.
For monthly income from the post office, see the post office MIS calculator. A bank deposit with interest payouts is covered by the FD calculator, and the pension calculator shows income from a corpus over set years.
Common mistakes
Mistake: Expecting the interest to compound like an FD.
Instead: It is paid out every quarter; reinvest it yourself if you want growth.
Mistake: Assuming the advertised rate applies to an older deposit.
Instead: Your rate is the one in force on your deposit date.
Mistake: Closing in the first year to switch schemes.
Instead: All interest paid would be recovered; compare the deduction first.
Mistake: Holding more than ₹30 lakh across accounts.
Instead: The limit covers all your SCSS accounts; excess is refunded.
Methodology and sources
Tests compare the formula with an independent quarter-by-quarter walk using the closure rules as India Post publishes them.
The deposit limits, payout dates, deductions and extension rules come from India Post’s scheme page. The ₹30 lakh limit comes from Department of Posts SB Order 06/2023. The rate defaults to 8.2%, the current rate.
The rate for new deposits is reviewed every quarter. This page will be checked when the next rate is announced. Source links, the review date and the financial disclaimer follow.
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