Quick answer
SCSS pays 8.2% a year as simple interest every quarter for five years. The maximum deposit of ₹30 lakh earns ₹61,500 a quarter (₹2,46,000 a year); a retired couple can hold ₹30 lakh each.
Rates as of 1 October to 31 December 2026 (Q3 FY 2026-27), notified 30 September 2026. Senior Citizens’ Savings Scheme: 8.2% a year. The government resets small savings rates every quarter; a deposit keeps the rate it was opened at, except PPF and SSY, which follow each quarter’s rate.
Sources: Department of Posts, SB Order No. 12/2026 (30 September 2026), enclosing Ministry of Finance OM F.No.1/4/2019-NS; India Post, Post Office Savings Schemes (current rates).
- Interest every quarter
- Monthly equivalent
- ₹20,500
- Yearly income
- ₹2,46,000
- Interest over 5 years
- ₹12,30,000
- ₹12.3 L
Paid on the first working day of April, July, October and January; the first payment covers only the days since you deposited. The rate is locked for the 5-year term (extendable by 3 years at the rate then). Interest is taxable at your slab, with TDS above the threshold unless you submit Form 15H.
Simple interest, paid quarterly
Quarterly interest = deposit × rate ÷ 4
The rate on the day you deposit is fixed for the whole five years. At 8.2%, it is the highest rate among the government small savings schemes, matched only by Sukanya Samriddhi, which is why most retirement plans in India use it first.
Building a retirement income ladder
SCSS covers the first ₹30 lakh per person. Beyond that, the Post Office MIS pays monthly up to ₹9 lakh, and a larger corpus can be drawn down through an SWP. To check how long the whole pot lasts once withdrawals rise with inflation, use how long will my money last.
