ReckonBoxHow the SCSS calculator works
The Senior Citizen Savings Scheme is a 5-year deposit for people aged 60 and above that pays simple interest every quarter and returns the whole deposit at the end. This calculator takes your deposit, the rate and your tax slab, then shows the quarterly interest, the monthly equivalent, the total over 5 years, the 80C tax the deposit saves, and what an early exit would cost. SCSS pays 8.2% a year for the current quarter, credited on the first of April, July, October and January.
On the default numbers the scheme reads like a steady pension. A Rs 15,00,000 deposit at 8.2% pays Rs 30,750 every quarter, about Rs 10,250 a month, and Rs 6,15,000 of interest over 5 years, then returns the full Rs 15,00,000. Nothing is reinvested, so each quarterly cheque is the same size.
The quarterly interest formula
SCSS quarterly interest is the deposit multiplied by the annual rate and divided by 4, written as quarterly interest = P x rate / 4. With P as your deposit, a Rs 15,00,000 account at 8.2% gives 15,00,000 times 0.082 divided by 4, which is Rs 30,750 a quarter. The interest is simple, not compounded, and it is paid out to you each quarter and never added back to the balance, so the payout stays level across the 20 quarters of the term.
That single detail trips up several online calculators. Because SCSS does not compound, the interest on a Rs 10,00,000 deposit over 5 years is Rs 4,10,000, giving Rs 14,10,000 in total. A calculator that compounds it quarterly shows about Rs 14,84,812, overstating the return by roughly Rs 74,000 on money that is actually paid out to you each quarter, so it never sits in the account to grow.
How much SCSS pays per quarter and per month
Each Rs 1 lakh in SCSS pays Rs 2,050 a quarter at 8.2%, so the payout scales straight with the deposit. Double the deposit and the cheque doubles. The scheme pays quarterly, but many people plan around a monthly figure, so the calculator shows both.
| Deposit | Quarterly interest | Monthly equivalent | Total interest (5 yr) |
|---|---|---|---|
| Rs 5,00,000 | Rs 10,250 | About Rs 3,417 | Rs 2,05,000 |
| Rs 15,00,000 | Rs 30,750 | About Rs 10,250 | Rs 6,15,000 |
| Rs 30,00,000 (max) | Rs 61,500 | About Rs 20,500 | Rs 12,30,000 |
The 80C tax the deposit saves
An SCSS deposit qualifies for a Section 80C deduction of up to Rs 1.5 lakh under the old regime, which this calculator prices at your slab. At the 30% slab, putting in Rs 1.5 lakh or more saves Rs 46,800 in tax including the 4% cess; at 20% it saves Rs 31,200. This is the sharp difference from the Post Office Monthly Income Scheme, whose deposit earns no 80C deduction at all, so a retiree weighing the two gets an upfront tax break only from SCSS.
Set the calculator to the new regime and the tax saved drops to zero, since 80C is available only under the old regime. The quarterly income and the deposit limit are unchanged; only the deduction goes away.
Tax on the interest, and TDS
SCSS interest is fully taxable at your income tax slab as income from other sources, and the post office or bank deducts TDS once your annual SCSS interest crosses Rs 1 lakh. That threshold was raised to Rs 1 lakh for senior citizens in FY2025-26, up from the earlier Rs 50,000. If your total income is below the taxable limit, you can file Form 15H to stop the TDS, though the interest still has to be declared.
On the default Rs 15,00,000 deposit the annual interest is Rs 1,23,000, which sits above the Rs 1 lakh TDS line, so tax would be deducted at source unless a valid Form 15H is on file. The NSC calculator covers the other 80C-eligible post office option, which compounds instead of paying out.
What an early exit costs
You can close an SCSS account early, and the penalty depends on how long the account has run, coming off the deposit rather than the interest you have drawn. Close within the first year and any interest already paid is recovered, with no penalty on the deposit itself. Close between years 1 and 2 and 1.5% of the deposit is deducted; after 2 years the deduction is 1%. On a Rs 15,00,000 account that is Rs 22,500 or Rs 15,000 off the principal, and the calculator above shows the figure for your own deposit.
The quarterly interest you collected before closing stays with you from year 1 onward. So an early exit past the first year is a question of whether the small penalty on the principal is worth freeing up the capital before the 5 years are up.
SCSS or POMIS
Both are government-backed post office income schemes, but they suit different savers.
| Feature | SCSS | POMIS |
|---|---|---|
| Who can open | Age 60 and above (or 55 to 60 under VRS) | Any resident adult |
| Rate | 8.2%, paid quarterly | 7.4%, paid monthly |
| Maximum | Rs 30 lakh | Rs 9 lakh single, Rs 15 lakh joint |
| 80C deduction | Yes, up to Rs 1.5 lakh | No |
| Payout | Quarterly | Monthly |
SCSS pays a higher rate and a bigger cap with an 80C break, but it is limited to seniors, where POMIS is open to any adult and pays monthly. For a one-time lump sum at any assumed rate, the lumpsum calculator runs the plain projection without the scheme rules.
What this does not promise
The 8.2% rate is locked for the account you open, so your quarterly income is fixed the day you invest, but the rate on new accounts is reviewed every quarter and may differ later. The 80C limit, the Rs 30 lakh cap, the TDS threshold and the premature-closure penalties follow the current rules, and those rules change, so treat the figures here as a planning guide. SCSS rules and rates are set by the government, and this is not investment or tax advice, so a qualified adviser can confirm how the scheme and its tax fit your situation.
Frequently asked questions
What is an SCSS calculator? An SCSS calculator works out the quarterly interest from a Senior Citizen Savings Scheme deposit using quarterly interest = deposit times the annual rate divided by 4. It also shows the total interest over the 5-year term, the 80C tax the deposit saves, and the full deposit that is returned at maturity.
What is the current SCSS interest rate? The Senior Citizen Savings Scheme rate is 8.2% per annum for the current quarter, paid out on the first day of April, July, October and January. The rate is fixed for your full 5-year term on the day you open the account, so a later revision does not change an existing deposit.
Does SCSS interest compound? No. SCSS pays simple interest that is credited to you every quarter and not reinvested, so the quarterly payout is the same each time and the maturity value equals your deposit. Some online calculators wrongly compound it and overstate the return; on a Rs 10 lakh deposit the correct 5-year interest is Rs 4,10,000, not the roughly Rs 4,84,812 a compounding tool shows.
How much interest does SCSS pay per quarter? A Rs 15,00,000 SCSS deposit pays Rs 30,750 a quarter at 8.2%, which works out to about Rs 10,250 a month. The quarterly interest is the deposit times 8.2% divided by 4, so a Rs 30 lakh deposit pays Rs 61,500 a quarter and a Rs 10 lakh deposit pays Rs 20,500.
What is the maximum I can invest in SCSS? The maximum is Rs 30 lakh across all your SCSS accounts, raised from Rs 15 lakh in 2023, with a minimum of Rs 1,000 in multiples of Rs 1,000. Several older calculators still show the Rs 15 lakh limit.
Does SCSS qualify for 80C, and is the interest taxable? The SCSS deposit qualifies for a Section 80C deduction of up to Rs 1.5 lakh under the old regime, which at the 30% slab saves Rs 46,800 in tax. The interest is fully taxable at your slab, and TDS applies once your annual SCSS interest crosses Rs 1 lakh.
Who is eligible for SCSS? Anyone aged 60 and above can open an SCSS account, along with retirees aged 55 to 60 who took superannuation or VRS, and retired defence personnel aged 50 to 60, in both cases within a month of receiving retirement benefits. The account can be opened at a post office or an authorised bank.
What happens if I close SCSS early? Closing within the first year recovers any interest already paid, with no penalty on the deposit. Closing between years 1 and 2 deducts 1.5% of the deposit, and after 2 years deducts 1%, while the quarterly interest already received is kept. On a Rs 15,00,000 deposit that is a Rs 22,500 or Rs 15,000 penalty on the principal.