Offering a competitive interest rate of 8.2 per cent for the April-June 2026 quarter, this scheme provides a reliable fixed-income stream for retirees.

Notably, by maximising the investment limit of Rs 30 lakh, an individual can effectively earn a monthly income of Rs 20,500 through quarterly interest payouts, ensuring a steady and comfortable cash flow throughout their golden years.

SCSS interest rate 2026

The interest rate for SCSS is 8.2 per cent for the April-June 2026 quarter.

The SCC government-backed small savings scheme has been designed specifically for small investors seeking a fixed-income option during their retirement years.

Is Aadhaar mandatory to open an SCSS account?

To open an SCSS account, an Aadhaar card is required.

Senior Citizen Savings Scheme deposit limit 2026

The minimum deposit amount in the SCSS is Rs 1,000, and the maximum limit across all SCSS accounts held by a single individual is Rs 30 lakh.

A husband and wife may open both single and joint accounts with each other, with a maximum deposit of up to Rs 30 lakh permitted in each account, provided that both individuals are personally eligible to open an account.

What if you accidentally deposit extra money into your SCSS account?

If an amount exceeding the prescribed limit is deposited into an SCSS account, the depositor will receive a refund of that excess amount. Furthermore, the interest rate applicable to a Post Office Savings Account will apply to this amount, and this rate will remain valid from the date of the excess deposit until the date the amount is refunded.

What's the process for closing an SCSS account, and when is it allowed?

The payment of the amount deposited at the time of opening an SCSS account shall be made five years from the date of opening the account, or thereafter, or upon the completion of any three-year block period in the event the account is extended. Provided that, subsequent to the closure of existing account(s), the depositor may open new accounts as per their requirements, subject to adherence to the maximum deposit limit. In the event of the account holder's demise, interest on the account shall accrue at the rate applicable to a Post Office Savings Account, calculated from the day immediately following the date of death up to the date on which the account is finally closed.

How to earn Rs 20,500 monthly through SCSS?

For investment in the Post Office SCSS scheme, a limit of Rs 15 lakh has been set for a lump-sum deposit made through a single account. In contrast, a maximum of Rs 30 lakh can be invested through a joint account. If we calculate the monthly income potential here -- assuming, for instance, that an individual deposits Rs 30 lakh into the Post Office Senior Citizen Scheme via a joint account -- they would receive Rs 61,500 solely as interest on a quarterly basis. This payout continues for the entire duration of 5 years. Subsequently, it is up to you whether to withdraw the principal amount of Rs 30 lakh after 5 years or to extend the scheme for an additional 3 years. Now, if we examine the monthly income aspect, the annual interest on Rs 30,00,000 -- at an interest rate of 8.2 per cent amounts to Rs 2,46,000. On a quarterly basis, this translates to Rs 61,500, while the monthly income generated from interest stands at Rs 20,500.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)

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