The government has decided to maintain the existing interest rates on all small savings schemes, including the Senior Citizen Savings Scheme (SCSS), for the April–June 2026 quarter. This decision was taken during the quarterly review conducted in March 2026. Senior Citizen Savings Scheme (SCSS), a government-backed small savings instrument, aims at providing a reliable and fixed income stream to senior citizens during retirement. It remains one of the most popular investment options among retirees due to its safety and assured returns.
According to the finance ministry's notification, “The rates of interest on various small savings schemes for the first quarter of FY 2026–27, starting from April 1, 2026, and ending on June 30, 2026, shall remain unchanged from those notified for the fourth quarter (January 1, 2026, to March 31, 2026) of FY 2025–26.”
Latest SCSS interest rate 2026
The interest rate for SCSS remains at 8.2 percent for the April–June 2026 quarter, unchanged from the previous quarter.
What are the deposit limits in SCSS?
Investors can open an SCSS account with a minimum deposit of Rs 1,000, while the maximum investment limit is capped at Rs 30 lakh across all accounts held by an individual. Spouses can open separate individual accounts or a joint account, provided both meet eligibility criteria.
What happens in case of excess deposits made in SCSS?
If an investor deposits more than the permitted limit, the excess amount is refunded. However, the interest applicable on the excess amount will be calculated based on the post office savings account rate from the date of deposit until the refund is processed.
ALSO READ: Why The Senior Citizen Savings Scheme (SCSS) Is A Good Option For Retirees Now
When can an SCSS account be closed?
SCSS accounts mature after five years from the date of opening. Investors can also extend the account after three-year block period. After maturity or extension, account holders may open new accounts as needed, subject to the maximum deposit limit.
In case of the account holder's death, the account will earn interest at the rate of the PO savings account from the next day of the date of death till the date of the final closure of the account.
Senior Citizen Savings Scheme Eligibility
The scheme is available to:
- Individuals aged 60 years and above
- Retired civilian employees aged 55–60 years, provided they invest within one month of receiving retirement benefits
- Retired defence personnel aged 50–60 years, under similar conditions
- Accounts can be opened individually or jointly with a spouse only
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