Post Office Senior Citizen Savings Scheme (SCSS) 2025
The Post Office Senior Citizen Savings Scheme (SCSS) is a government-backed scheme designed specifically for senior citizens in India to get regular income post-retirement. It provides a secure investment option with an attractive SCSS interest rate and flexible terms to help the elderly grow their savings securely. The Post Office SCSS currently offers an attractive interest rate of 8.20% annually.
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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. This would be effective from April 1, 2025.
Features of the Post Office Senior Citizen Saving Scheme (SCSS)
Below are the essential features and benefits that make this Post Office Monthly Income Scheme for Senior Citizens a preferred choice for retirees:
Eligibility: Open to senior citizens aged 60 and above.
Investment Limit: Minimum investment of ₹1,000; maximum of ₹30 lakh (for single or joint accounts).
Interest Rate: Currently the Post Office Senior Citizen Scheme offers an attractive interest rate of 8.2% per annum (for the quarter from April 01 to June 30, 2025).
Interest Payment: Interest is compounded and paid out quarterly (every 3 months).
Joint Account: Can be opened jointly, but only with a spouse, with the first depositor being the investor.
Number of Accounts: Multiple accounts can be opened, subject to the overall maximum investment limit.
Tenure: The scheme has a fixed tenure of 5 years.
Account Extension: Can be extended for 3 more years from the date of maturity. The extension request must be submitted within 1 year of maturity, and the interest rate applicable on the maturity date will apply.
Tax Benefits: Qualifies for a deduction under Section 80C up to ₹1.5 lakh. However, the interest earned is taxable.
Premature Withdrawal: Permitted with an applicable penalty.
Nomination Facility: Available for convenience.
Excess Deposit Handling: Any excess deposit is refunded immediately, with the Post Office Savings Account interest rate applied to that amount until refunded.
Safety: The scheme is fully backed by the Government of India, ensuring high safety.
Eligibility Criteria for Post Office Senior Citizen Savings Scheme
To avail the benefits of the SCSS Post Office, 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 Saving 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 April 01 to June 30, 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
Post Office Scheme for Senior Citizens Interest 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 SCSS Scheme 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.
Premature Account Closure Rules for Post Office Senior Citizen Saving Scheme (SCSS)
Following are the premature Post Office’s SCSS account closure rules under this investment option:
Closure Anytime: The account can be closed anytime after opening.
Closure Before 1 Year: No interest will be paid, and any interest already credited will be deducted from the principal.
Closure After 1 Year but Before 2 Years: A penalty of 1.5% of the principal amount will be deducted.
Closure After 2 Years but Before 5 Years: A penalty of 1% of the principal amount will be deducted.
Closure of Extended Account: If the account is extended, it can be closed after 1 year from the extension date without any deduction.
Senior Citizen Saving Scheme Post Office Account Closure on Maturity
The following points must be kept in mind when you close your Post Office SCSS account on maturity:
Closure After 5 Years: The account can be closed after 5 years by submitting the prescribed application form along with the passbook at the concerned post office.
In Case of Account Holder’s Death: From the date of death, the account will earn interest at the Post Office Savings Account rate.
For Joint Holder or Nominee (Spouse): If the spouse is a joint holder or the sole nominee, they can continue the account till maturity, provided they are eligible for SCSS and do not hold another SCSS account.
Documents Required for Post Office Senior Citizen Saving Scheme (SCSS)
To make an Investment in the Senior Citizen Post Office 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 Post Office SCSS?
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 Saving Scheme (SCSS) stands as a reliable and attractive investment option specifically customized for the financial security of senior citizens. Offering competitive SCSS interest rates, valuable tax benefits, and unwavering government backing, it presents a prudent choice for retirees seeking stable returns and absolute peace of mind.
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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Past 10 Years' annualised returns as on 01-06-2025
^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.
#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 @ CARG 8%; ₹50,45,591 @ CAGR 4%
¶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).
Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
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