The government backs the Senior Citizen Savings Scheme (SCSS) Interest Rate to provide senior citizens with financial security through assured returns. It offers competitive interest rates and tax benefits, making it one of the most preferred savings options for retirees in India.
The government determines the SCSS interest rate and revises it quarterly based on prevailing economic conditions and market interest rates. The interest rate is higher than most fixed deposits, making it an attractive investment option for senior citizens.
As of 2025, the SCSS current interest rate is 8.2% per annum, payable quarterly. The interest rate is subject to revision every quarter by the Ministry of Finance.
Here’s a look at the historical interest rates for SCSS:
| Period | Interest Rate (%) |
| Q1 2023 | 8.0% |
| Q2 2023 | 8.2% |
| Q3 2023 | 8.2% |
| Q4 2023 | 8.2% |
| Q1 2023 | 8.2% |
| Q1 2024 | 8.0% |
| Q2 2024 | 8.1% |
| Q3 2024 | 8.2% |
| Q4 2024 | 8.2% |
| Q1 2025 | 8.2% |
The system calculates SCSS interest quarterly and pays it out on the first day of April, July, October, and January. The bank credits the earned interest directly to the account holder’s bank account.
Formula for SCSS Interest Calculation: Where:
For example, if an individual invests ₹10 lakh in SCSS at 8.2% interest per annum, the quarterly interest payout will be:
You may also want to know the GPF Interest Rate
SCSS is ideal for:
To open an SCSS account, follow these steps:
You may also want to know National Pension Scheme Tier I
The Senior Citizen Savings Scheme (SCSS) is an excellent investment avenue for senior citizens looking for stable returns. With an attractive interest rate, quarterly payouts, and government-backed security, SCSS stands as one of the best post-retirement savings schemes in India. While the interest is taxable, it provides financial independence to retirees with fixed earnings. It is always advisable to compare SCSS with other investment options such as Fixed Deposits (FDs) or Pradhan Mantri Vaya Vandana Yojana (PMVVY) before investing.
The SCSS interest rate in 2025 is 8.2% per annum, payable quarterly.
Interest is paid quarterly on the 1st of April, July, October, and January.
Yes, the interest rate is revised every quarter by the government.
You can invest a maximum of ₹15 lakh in an SCSS account.
No, SCSS interest is taxable. TDS is deducted if interest exceeds ₹50,000 per annum.
Yes, premature withdrawals are allowed but attract a penalty of 1-1.5% of the deposit amount.
Individuals aged 60 years or above, or retired defense personnel aged 55 years or above.
SCSS offers higher interest rates and quarterly payouts, but FDs offer flexible tenures and lower tax implications.
Get the link to download the App
