Senior Citizen Savings Scheme: Good News for Senior Citizens! Get ₹12.3 Lakhs in Just 5 Years, Find Out How

WBPAY Team8 hours agoLast Updated: September 26, 2025

Senior Citizen Couple Looking At Their Investment Papers

Senior Citizen Savings Scheme: Currently, the Senior Citizen Savings Scheme (SCSS) is a special scheme offered by the government for senior citizens. By investing in this scheme, you not only ensure a secure future but can also earn attractive returns. Let’s delve into the details of this scheme.

Table of Contents

What is the Senior Citizen Savings Scheme (SCSS)?

The Senior Citizen Savings Scheme is a savings plan run by the Government of India, specifically designed to provide financial security to senior citizens. Investment in this scheme is completely safe as it is backed by the government. Its main objective is to provide a regular source of income for seniors during their retirement.

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Interest Rate and Investment Limits

Interest Rate: Currently, the scheme offers an annual interest rate of 8.2%, which is quite attractive compared to many other schemes.
Minimum Investment: You can start investing in this scheme with a minimum of ₹1,000.
Maximum Investment: A maximum of ₹30 lakh can be invested in this scheme.

How to Earn ₹12.3 Lakhs in 5 Years?

If a senior citizen invests the maximum amount of ₹30 lakh in this scheme, they can earn ₹12.3 lakh in interest alone over 5 years. Let’s understand the calculation:

Annual Interest: At an 8.2% interest rate, the annual interest on ₹30 lakh is ₹2,46,000.
Quarterly Interest: One of the key benefits of this scheme is that the interest is paid out quarterly. In this case, you will receive ₹61,500 every three months.
Total Interest in 5 Years: Based on this calculation, your total interest amount over 5 years will be ₹12,30,000 (₹2,46,000 x 5 years).

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Other Important Features of the Scheme

Maturity Period: The maturity period for this scheme is 5 years. If you wish, you can extend the term for another 3 years after maturity.
Who can invest: Any citizen aged 60 years or older can invest in this scheme. Additionally, retired government and defense employees can invest earlier, subject to certain conditions.
Tax Benefits: You can avail tax exemption on investments up to ₹1.5 lakh under Section 80C of the Income Tax Act.
Tax on Interest: Please note that the interest earned from this scheme is taxable according to your income tax slab. If your annual interest income exceeds ₹50,000, TDS (Tax Deducted at Source) will be applicable.

This scheme is a reliable and profitable investment option for senior citizens. For those looking for a secure and regular income source after retirement, the Senior Citizen Savings Scheme can be an ideal choice.