Offering an attractive sovereign-guaranteed interest rate of 8.2% per annum, the Senior Citizen Savings Scheme (SCSS) is the crown jewel of India Post small savings programs. Tailored specifically for retirees aged 60 and above, SCSS provides a reliable, secure quarterly income stream without market fluctuations.
1. Exact SCSS Quarterly Interest Payout Schedule (2026)
Unlike Monthly Income Schemes (MIS), SCSS interest is calculated quarterly and credited automatically on predetermined dates:
| Financial Quarter | Interest Accrual Period | Official Credit Date | Quarterly Payout on ₹30 Lakh Max Cap (8.2%) |
|---|---|---|---|
| Quarter 1 (Q1) | April 1 to June 30 | July 1 (or June 30 EOD) | ₹61,500 |
| Quarter 2 (Q2) | July 1 to September 30 | October 1 (or Sept 30 EOD) | ₹61,500 |
| Quarter 3 (Q3) | October 1 to December 31 | January 1 (or Dec 31 EOD) | ₹61,500 |
| Quarter 4 (Q4) | January 1 to March 31 | April 1 (or March 31 EOD) | ₹61,500 |
Total annual interest payout on the maximum ₹30 Lakh deposit stands at ₹2,46,000 per year.
2. Key Scheme Rules & Revised Benefits
- Enhanced Investment Cap: The maximum investment ceiling stands at ₹30 Lakhs (increased from the earlier ₹15 Lakh limit).
- Eligibility: Individuals aged 60 years or above. Retired civilian employees between 55 and 60 years and retired defense personnel aged 50+ can also invest within 1 month of receiving retirement benefits.
- Auto-Credit Facility: Quarterly interest can be directly credited to your Post Office Savings Account or automatically routed via ECS/NACH to any commercial bank savings account (SBI, ICICI, etc.).
- Tax Benefit under Section 80C: Investments up to ₹1.5 Lakh qualify for tax deductions under Section 80C of the Income Tax Act.
3. How to Extend SCSS for 3-Year Blocks
The initial tenure of SCSS is 5 years. Upon maturity, you do not need to withdraw your funds:
- Obtain and fill Form-4 (Application for Extension of Account).
- Submit the form along with your original passbook within 1 year of maturity at your home post office.
- The account is extended for a 3-year block and continues to earn the prevailing interest rate applicable to that quarter.
- Under revised Gazette guidelines, senior citizens can continue extending in consecutive 3-year blocks indefinitely.
4. How to Save TDS Using Form 15H
Under Section 194A, if your annual SCSS interest exceeds ₹50,000, India Post is legally required to deduct 10% TDS. To prevent automatic tax deduction:
- Download Form 15H (Self-declaration for senior citizens aged 60+).
- Submit 2 signed copies of Form 15H to your Sub-Postmaster in the first week of April each financial year.
- The post office enters your declaration into Finacle CBS and issues a zero-TDS acknowledgement receipt.
Calculate your exact returns across various tenures using our interactive Post Office Savings Schemes Calculator or explore interest rates in our comprehensive Post Office Schemes & Interest Rates Guide.