The Post Office Senior Citizen Savings Scheme (SCSS) is a reliable investment option for individuals aged 60 and above, offering guaranteed returns with government backing. For the July-September 2025 quarter, the scheme provides an attractive interest rate of 8.2% per annum. The minimum amount required to open an SCSS account is ₹1,000, making it accessible and secure for all eligible senior citizens.
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Post Office Senior Citizen Savings Scheme (SCSS) 2024
Union Budget Update for Senior Citizens in FY 2025-26
Budget 2025 increased the TDS limit for interest earned by senior citizens (other than interest earned on securities) from ₹50,000 to ₹1,00,000, effective April 1, 2025.
Features of the Post Office Senior Citizen Saving Scheme (SCSS)
The Post Office Monthly Income Scheme for Senior Citizens is an investment option that offers retirees safe investments with regular income. Key features include:
The SCSS scheme is open to citizens aged 60 years and above.
Minimum deposit of ₹1,000 and maximum of ₹30 lakh (single or joint with spouse).
Attractive interest rate of 8.2% per annum (Apr-Jun 2025), paid quarterly.
Fixed tenure of 5 years with a one-time extension of 3 years.
Eligible for Section 80C tax deduction up to ₹1.5 lakh; interest is taxable.
Premature closure allowed with applicable penalty.
Nomination facility available.
Fully secured as a Government of India-backed Post Office scheme.
Eligibility Criteria for Post Office Senior Citizen Savings Scheme
To avail the benefits of the Post Office Monthly Income Scheme for Senior Citizens, the following eligibility criteria must be fulfilled:
Category
Criteria / Details
Age Requirement
Individuals aged 60 years or above.
Retired Civilian Employees
Aged between 55-60 years, provided the investment is made within 1 month of receiving retirement benefits.
Retired Defence Employees
Aged between 50-60 years, provided the investment is made within 1 month of receiving retirement benefits.
Account Types
Can be opened individually or jointly with a spouse.
In joint accounts, the entire deposit amount is attributed solely to the first account holder.
Ineligible Individuals
Non-Resident Indians (NRIs) are not eligible to open an SCSS account.
Hindu Undivided Families (HUFs) are also not eligible.
Post Office Senior Citizen Scheme Interest Rates
The central government authorizes the SCSS interest rate. Currently, the Post Office Senior Citizen Scheme interest rate is 8.20% per annum (for the quarter from July 1, 2025-September 20, 2025).
The following table shows the Post Office SCSS interest rate 2025 in India:
Period
Post Office Senior Citizen Scheme Interest Rate (in % p.a.)
Aug 2, 2004 - Mar 31, 2012
9
Apr 1, 2012 - Mar 31, 2013
9.3
Apr 1, 2013 - Mar 31, 2015
9.2
Apr 1, 2015 - Mar 31, 2016
9.3
Apr 1, 2016 - Sep 30, 2016
8.6
Oct 1, 2016 - Mar 31, 2017
8.5
Apr 1, 2017 - Jun 30, 2017
8.4
Jul 1, 2017 - Sep 30, 2018
8.3
Oct 1, 2018 - Jun 30, 2019
8.7
Jul 1, 2019 - Mar 31, 2020
8.6
Apr 1, 2020 - Sep 30, 2022
7.4
Oct 1, 2022 - Dec 31, 2022
7.6
Jan 1, 2023 - Mar 31, 2023
8
Apr 1, 2023 - March 31, 2024
8.2
April 1, 2024 - June 30, 2024
8.2
January 1, 2025- March 31, 2025
8.2
April 1, 2025- June 30, 2025
8.2
July 1, 2025-September 20, 2025
8.2
Post Office Monthly Income Scheme For Senior Citizens Payment Rules (2025)
Learn about the specific rules governing interest payments for the Post Office Senior Citizen Savings Scheme below:
Rule Aspect
Details
Quarterly Payout Dates
Interest is paid every quarter on 31st March, 30th June, 30th September, and 31st December.
Unclaimed Interest
Unclaimed interest does not accrue any additional interest.
Withdrawal Options
Auto-credit to a savings account in the same post office or via ECS.
For SCSS accounts in CBS post offices, monthly interest can be credited to any CBS post office savings account.
Taxation Rules under Post Office Monthly Income Scheme For Senior Citizens for FY 2025-26
The taxation rules for the Post Office Senior Citizen Saving Scheme (SCSS) for FY 2025-26 are:
Tax Aspect
Details / Rule
Section 80C Deduction
Deduction: Up to ₹1.5 lakh under the old tax regime.
Applicability: Only if the Section 80C limit is not fully utilized by other investments.
Interest Income Taxability
Taxable: Interest earned is fully taxable as per the individual's income slab.
Payment Frequency: Interest is paid quarterly.
Section 80TTB Deduction
Deduction Limit: Senior citizens can claim a deduction of up to ₹50,000 on interest income from deposits (including SCSS interest).
TDS (Tax Deducted at Source) on Interest
No TDS: If the total interest income from post office SCSS is up to ₹1,00,000 per year (effective April 1, 2025, as per Budget 2025).
TDS Applies: If interest exceeds ₹1,00,000, TDS is deducted at 10% (with PAN) or 20% (without PAN).
Avoid TDS: Form 15G (for non-senior citizens whose income is below taxable limit) or Form 15H (for senior citizens whose income is below taxable limit) can be submitted to avoid TDS.
Budget 2025 Update
The TDS threshold for senior citizens (excluding securities) has been raised from ₹50,000 to ₹1,00,000, effective April 1, 2025.
Account Closure Rules for Post Office Monthly Income Scheme for Senior Citizens
The Post Office Senior Citizen Scheme allows account holders to close their accounts either prematurely or on maturity, subject to certain conditions:
Premature Closure:
The account can be closed anytime after opening.
If closed before 1 year, no interest will be paid. Any interest already credited will be deducted from the principal.
If closed after 1 year but before 2 years, a penalty of 1.5% of the principal amount will be deducted.
If closed after 2 years but before 5 years, a penalty of 1% of the principal amount will be deducted.
In case of an extended account, closure is allowed after 1 year from the extension date without any deduction.
Closure on Maturity:
The account matures after 5 years and can be closed by submitting the required application form along with the passbook at the concerned post office.
In the event of the account holder's death, the account will earn interest at the Post Office Savings Account rate from the date of death.
If the spouse is a joint holder or the sole nominee, they may continue the account till maturity, provided they meet the eligibility criteria under SCSS and do not hold another SCSS account.
Documents Required for Post Office Monthly Income Scheme for Senior Citizens
To make an Investment in the Post Office Senior Citizen Scheme, the following documents need to be submitted by the applicants:-
Fill out the application form available at the Bank or Post office
Fill out the Know Your Customer (KYC) form
Provide the following documents:
Permanent Account Number (PAN) Card Number
Voter ID Card
Recent Photograph
Passport
Aadhaar Card
Driver's license
Also, the Applicant's Employer Certificate, mentioning the retirement VRS or Superannuation, needs to be submitted.
How to Open a Senior Citizen Savings Scheme in the Post Office?
Following are the steps to open a Post Office Senior Citizen Savings Scheme account at a post office in India:
Step 1- Visit your nearest post office branch.
Step 2- Collect and fill out the Post Office Senior Citizen Scheme application form. You can usually obtain the form at the post office itself, or you might be able to download it from the India Post website.
Here is how to fill out the form:
Enter the name of the post office branch.
If you already have a savings account with the post office, enter your account number.
Fill in your name and tick the "SCSS" option.
Attach two recent passport-sized photographs.
Provide details like your address and contact information.
Step 3- Submit the completed application form along with the required documents. These documents typically include:
Know Your Customer (KYC) documents:
Identity proof (PAN card, Voter ID, Aadhaar card, or passport)
Address proof (Aadhaar card, utility bills, etc.)
Age proof (PAN card, Voter ID, birth certificate, or senior citizen card)
Proof of initial deposit: This can be a cheque or cash (depending on the post office's policy).
Nomination Details: You can nominate one or more individuals for the account balance.
Step 4 - Deposit Amount: The minimum deposit is ₹1,000, and the maximum is ₹30 lakh. You can deposit through cash or cheque.
Step 5 - Processing and Account Opening: The post office will process your request and open the SCSS account. You will receive an account passbook or statement.
Step 6 - Signatures and Nominee Information: Ensure all account holders sign the application form. Also, provide nominee details, and ensure all signatures are valid.
Online Option: While SCSS can be opened online at banks, post offices do not offer online account opening. You need to visit the branch.
Can You Open Multiple Accounts Under the Post Office Monthly Income Scheme for Senior Citizens?
It is important to know that the Senior Citizen Scheme Post Office provides the option to deposit the funds into your account in a lump sum. As a result, you can also open multiple accounts under the senior citizen saving scheme post office, given that the total amount deposited does not exceed the maximum limit of Rs. 30 lakhs. However, opening more than one account in the same deposit branch is prohibited within the same calendar month.
Sum It Up
The Post Office Senior Citizen Savings Scheme serves as a dependable investment option, combining capital protection with attractive quarterly interest payouts and government assurance. For those seeking risk-free, steady post-retirement income with added tax benefits, the Post Office Senior Citizen Savings Scheme stands out as a cornerstone of financial stability.
FAQs
Is there a nominee facility available under the Post Office Senior Citizen Scheme?
Yes, you can designate a beneficiary to receive the account balance upon your death.
Can I withdraw money before maturity under the Senior Citizen Saving Scheme Post Office?
Yes, after one year but a penalty applies.
Where can I open a Post Office Senior Citizen Saving Scheme account?
You can visit your nearest authorized post office in India.
Can I transfer my Senior Citizen Post Office Scheme account to another bank?
No, SCSS accounts cannot be transferred to banks. However, they can be transferred between authorized post offices in India.
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Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
Past 10 Years' annualised returns as on 01-10-2025
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
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Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
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