What this scheme offers
SCSS is a government-backed, zero-risk savings scheme designed to give retirees a steady income stream. The current interest rate is 8.2% per annum (Q1 FY2026-27), reviewed and set by the Ministry of Finance every quarter — but once you invest, your rate is locked in for the full 5-year tenure regardless of later changes. Interest is credited quarterly (1 April, 1 July, 1 October, 1 January). Deposits qualify for a tax deduction under Section 80C, though the interest itself is taxable (TDS applies if annual interest across all your SCSS accounts exceeds ₹50,000; submit Form 15H/15G if your income is below the taxable limit to avoid it). You can extend the account by 3 more years within 1 year of maturity, at the interest rate prevailing at the time of extension. Premature closure is allowed after 1 year, with a penalty.
Who is eligible
- Any individual aged 60 or above.
- Retired civilian employees aged 55–60, who open the account within 1 month of receiving their retirement benefits (investment capped at the retirement benefit amount received).
- Retired defence personnel aged 50 or above, under similar conditions.
- Account can be held individually, or jointly with a spouse only (not any other relative).
- NRIs and Hindu Undivided Families (HUFs) are not eligible.
Documents required
- Aadhaar card and PAN card
- Age proof
- Retirement benefit proof, if opening under the 55–60 or defence 50+ category
- Passport-size photographs
- Initial deposit (minimum ₹1,000)
How to open an account
- Visit a post office or an authorised bank branch — new SCSS accounts generally require an in-person visit for KYC and age verification (India Post does not currently offer fully online opening; a few banks allow it for existing customers).
- Call ahead to confirm the specific branch is authorised to open SCSS accounts, and ask what documents they need on the day.
- Fill out the account opening form and submit your KYC and age/retirement proof.
- Make your initial deposit — anywhere from ₹1,000 up to ₹30 lakh, in a single deposit.
- Set up ECS/NACH to auto-credit your quarterly interest to a linked savings account, avoiding repeat branch visits.
- Your account is typically activated the same day, with a passbook issued before you leave.