Retired with a lump sum. Now what?
Ramesh-bhai turned 60 this year and his retirement money is sitting in a savings account. He wants part of it to pay him a steady income, without the ups and downs of the market. The Senior Citizens Savings Scheme was made for exactly this. He deposits a lump sum once, and the interest is paid out to him every quarter.
With ₹15 lakh at 8.2%, he gets ₹30,750 every quarter. That is ₹1,23,000 a year, or about ₹10,250 a month if he spreads it out. Over 5 years the interest adds up to ₹6,15,000, and the ₹15 lakh comes back at the end.
The quarterly calendar
Interest is paid on the first working day of April, July, October and January. Since it comes once in three months and not monthly, keep one quarter’s expenses in the savings account as a buffer. It is simple interest, so the amount is the same every time:
Interest every quarter = deposit × rate ÷ 4 ÷ 100
The interest is taxed at your slab rate.
Going up to ₹30 lakh
The limit is ₹30 lakh per person, in multiples of ₹1,000. At the full ₹30 lakh, the payout is ₹61,500 a quarter, or ₹2,46,000 a year. As the limit is per person, a husband and wife who both qualify can each open their own account.
After 5 years: extend or take it back
The account can be extended by 3 years at a time. Pick the 8-year option above to see one extension. At today’s 8.2%, ₹30 lakh would earn ₹19.68 lakh over 8 years. But the extension earns the rate in force on the date the account matures, so the real figure can be higher or lower.
Want money every month instead, or not 60 yet? The Post Office MIS calculator shows what monthly payouts at 7.4% look like.
SCSS rules
| Who can open | People aged 60 or more. From 55 for retired employees who invest their retirement money within three months, from 50 for retired defence staff |
|---|---|
| Interest rate | 8.2% a year (October to December 2026), reviewed every quarter, fixed for your account’s term |
| Deposit | ₹1,000 to ₹30 lakh per person, in multiples of ₹1,000 |
| Term | 5 years, can be extended by 3 years at a time |
| Interest paid | First working day of April, July, October and January |
| Tax | Interest taxed at your slab rate |
Frequently asked questions
What is the SCSS interest rate now?
8.2% a year for October to December 2026. The rate is reviewed every quarter, but whatever rate applies on the day you open the account stays fixed for its whole term.
What is the maximum amount in SCSS?
₹30 lakh per person, starting from ₹1,000, in multiples of ₹1,000. At 8.2%, the full ₹30 lakh pays ₹61,500 every quarter, which works out to ₹20,500 a month.
When is SCSS interest paid?
Every quarter, on the first working day of April, July, October and January. It is simple interest, so the amount stays the same each quarter. The interest is taxed at your slab rate.
Who can open an SCSS account?
Anyone aged 60 or more. Retired employees can open one from 55 if they invest their retirement money within three months of getting it, and retired defence staff from 50.
Can SCSS be extended after 5 years?
Yes, by 3 years at a time. The extended period earns the rate in force on the date the account matures, which may be higher or lower than your current rate. The 8-year option in the calculator shows one extension at today’s rate.
Calculator maintained by Manoj. Last reviewed: 19-10-2026. Rates and rules are checked against official sources. Tell us if something has changed. Contact
