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 October to December 2026 quarter, credited on the first of April, July, October and January.
On the default numbers the scheme reads like a steady pension. A ₹15,00,000 deposit at 8.2% pays ₹30,750 every quarter, about ₹10,250 a month, and ₹6,15,000 of interest over 5 years, then returns the full ₹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 ₹15,00,000 account at 8.2% gives 15,00,000 times 0.082 divided by 4, which is ₹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 published calculators. Because SCSS does not compound, the interest on a ₹10,00,000 deposit over 5 years is ₹4,10,000, giving ₹14,10,000 in total. Compound the same deposit quarterly and you get ₹15,00,584, overstating the return by ₹90,584 on money that is paid out to you each quarter and never sits in the account to grow.
Two of the four calculators ranking for this term print the compound formula, A = P x (1 + r/n)^(n x t), and describe the interest as compounded quarterly. One of them then shows a worked example that contradicts its own formula: ₹5,00,000 at 8.2% for five years maturing at ₹7,05,000, which is the simple answer. Its printed formula would give ₹7,50,292, a difference of ₹45,292.
The number they display is right and the formula above it is wrong, which is a comfortable place to be until somebody tries to check the working by hand.
How much SCSS pays per quarter and per month
Each ₹1 lakh in SCSS pays ₹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) |
|---|---|---|---|
| ₹5,00,000 | ₹10,250 | About ₹3,417 | ₹2,05,000 |
| ₹15,00,000 | ₹30,750 | About ₹10,250 | ₹6,15,000 |
| ₹30,00,000 (max) | ₹61,500 | About ₹20,500 | ₹12,30,000 |
The 80C tax the deposit saves
An SCSS deposit qualifies for a Section 80C deduction of up to ₹1.5 lakh under the old regime, which this calculator prices at your slab. At the 30% slab, putting in ₹1.5 lakh or more saves ₹46,800 in tax including the 4% cess; at 20% it saves ₹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 ₹1 lakh. That threshold doubled from ₹50,000 with effect from 1 April 2025. Deduction runs at 10% where a PAN is on record and 20% where it is not.
On the default ₹15,00,000 deposit the annual interest is ₹1,23,000, comfortably above the line, so tax is deducted at source unless a valid declaration is on file.
That declaration has changed its name, and almost nothing written about SCSS has caught up. Forms 15G and 15H were replaced by a single Form 121, a declaration under section 393(6) of the Income-tax Act 2025, with effect from 1 April 2026. It does the same job: a depositor whose estimated total income is nil declares as much, and tax is not deducted. Filing it does not make the interest tax-free, it only stops the withholding.
The NSC calculator covers the other 80C-eligible post office option, which compounds instead of paying out and carries no TDS at all.
What an early exit costs
You can close an SCSS account early, and the penalty depends on how long it has run, coming off the deposit rather than the interest you have drawn.
- Closing inside the first year recovers any interest already paid, with no penalty on the deposit itself.
- Closing between years 1 and 2 deducts 1.5% of the deposit, which is ₹22,500 on a ₹15,00,000 account.
- Closing after 2 years deducts 1%, which is ₹15,000 on the same account.
The calculator above prices each band against 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.
The term, the extension, and joint accounts
An SCSS account runs for 5 years and can then be extended in blocks of 3 years, as often as you like. The extension is not automatic and the paperwork window is short.
- Apply within one year of maturity to extend.
- An extended deposit earns the rate prevailing on the maturity date, which may be well away from the rate the account opened at. An extension is therefore a fresh decision about the rate on offer.
- There is no penalty for closing during an extension after the first year of that block.
Joint holding is narrower than most schemes:
- A joint account is permitted only with a spouse.
- The whole deposit counts against the first holder's ₹30 lakh limit, so a couple cannot use a joint account to double the ceiling.
- Both the ₹30 lakh cap and the 80C deduction apply per person, so a couple with separate accounts can hold ₹60 lakh between them.
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 | ₹30 lakh | ₹9 lakh single, ₹15 lakh joint |
| 80C deduction | Yes, up to ₹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 ₹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 ₹10 lakh deposit the correct 5-year interest is ₹4,10,000, where a tool compounding it quarterly shows ₹5,00,584, overstating it by ₹90,584.
How much interest does SCSS pay per quarter? A ₹15,00,000 SCSS deposit pays ₹30,750 a quarter at 8.2%, which works out to about ₹10,250 a month. The quarterly interest is the deposit times 8.2% divided by 4, so a ₹30 lakh deposit pays ₹61,500 a quarter and a ₹10 lakh deposit pays ₹20,500.
What is the maximum I can invest in SCSS? The maximum is ₹30 lakh across all your SCSS accounts, raised from ₹15 lakh in 2023, with a minimum of ₹1,000 in multiples of ₹1,000. Several older calculators still show the ₹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 ₹1.5 lakh under the old regime, which at the 30% slab saves ₹46,800 in tax. The interest is fully taxable at your slab, and TDS applies once your annual SCSS interest crosses ₹1 lakh, at 10% with a PAN on record.
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.
Can I extend an SCSS account after 5 years? Yes, in blocks of 3 years, as many times as you like, by applying within one year of maturity. The extended deposit earns the rate prevailing on the maturity date, which may differ from the rate you originally opened at, so extending is a fresh decision about the rate on offer.
Which form stops TDS on SCSS interest now? Form 121, a declaration under section 393(6) of the Income-tax Act 2025, which replaced Forms 15G and 15H from 1 April 2026. Most SCSS guidance still names the old forms. It does not make the interest tax-free; it only stops tax being deducted at source where none is finally due.
Can my spouse and I open a joint SCSS account? Yes, and only with a spouse. The whole deposit counts against the first holder's ₹30 lakh limit, so a joint account does not double the ceiling. Two separate accounts do, since the cap and the 80C deduction both apply per person.
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 ₹15,00,000 deposit that is a ₹22,500 or ₹15,000 penalty on the principal.
Sources
- TaxGuru, Senior Citizens' Savings Scheme rules from 1 July 2026
- Income Tax Department, Form 121 FAQs, which replaced Forms 15G and 15H
- India Post, Senior Citizens Savings Scheme rules
- ClearTax, Senior Citizen Savings Scheme interest rate, limits and tax
- Groww, SCSS calculator and simple-interest method