Is SCSS investment tax-deductible?

Yes, under Section 80C up to the overall ₹1.5 lakh limit. The interest earned, however, is fully taxable as per your income slab, and TDS applies if total interest exceeds the prescribed threshold in a year.

Can I withdraw before 5 years?

Premature closure is allowed after 1 year, subject to a penalty deducted from the principal (a higher penalty if closed before 2 years, a smaller one after).

What's the maximum I can invest in SCSS?

₹30 lakh per individual, across all SCSS accounts held in single or joint (with spouse) capacity.

🇮🇳 Banking

Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Scheme is a government-backed savings scheme for Indians aged 60 and above (58+ for those who've taken voluntary/special retirement, and 50+ for retired defence personnel), offering one of the highest guaranteed interest rates among small savings schemes, paid out quarterly, with a 5-year tenure and Section 80C tax deduction.

Official website

National Savings Institute, Ministry of Finance

https://www.nsiindia.gov.in

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Last updated 10 Sept 2026 Verified against National Savings Institute, Ministry of Finance Educational guide, not a government site — see our editorial policy.

Disclaimer

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Required documents

Aadhaar card
PAN card
Age proof
Passport-size photograph
Retirement/service certificate (for those investing under the retirement-based age relaxation)

Eligibility

• Indian resident individual aged 60 or above
• Individuals aged 55-60 who've retired under voluntary or special voluntary retirement schemes, if invested within a month of receiving retirement benefits
• Retired defence personnel aged 50-60, subject to specified conditions
• NRIs and HUFs cannot invest in SCSS

Step-by-step guide

1
Visit a post office or an SCSS-authorised bank branch.
2
Fill the SCSS application form and submit KYC and age-proof documents.
3
Make the deposit — minimum ₹1,000, up to a maximum of ₹30 lakh, in multiples of ₹1,000.
4
Collect your SCSS passbook/certificate.
5
Add a nomination, and note the quarterly interest payout dates for your account.

Official fees

No account-opening fee. Minimum deposit ₹1,000; maximum ₹30 lakh per individual (across all SCSS accounts held).

Processing time

Typically same-day at the post office or bank branch once documents are verified.

Validity

5-year tenure, extendable once by 3 years after maturity.

How to apply

Offline (post office / authorised bank branch)

Official quick links

National Savings Institute — Small Savings Schemes

Frequently asked questions

Quarterly, credited directly to the linked savings account, rather than compounded and paid at maturity.

Common mistakes to avoid

• Investing more than ₹30 lakh across accounts, which isn't permitted
• Not accounting for TDS on interest once the yearly threshold is crossed
• Closing the account before 1 year expecting a refund without conditions — premature closure before 1 year isn't allowed at all
• Forgetting SCSS interest is fully taxable, unlike the tax-free interest on PPF

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