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The Post Office Senior Citizens Savings Scheme (SCSS) is a safe investment option for individuals over 60 years offered by India Post. Since it is a government-backed scheme, the risk involved is minimal, and the returns are higher. 

The benefits include joint application with another eligible individual and tax deductions. Read on to learn more about SCSS and its features.

Interest Rates on Post Office Senior Citizens Savings Schemes

The Government of India notifies and reviews the interest rates for the Senior Citizen Savings Scheme every quarter. As a result, the interest is subject to change from time to time. At present, the interest rates stand at 8.20% p.a from October to December 2023.


Here is a table outlining the different post office schemes and their interest rates for senior citizens. 

Post Office Investment Scheme 

Interest Rate for Senior Citizens 

Senior Citizens Savings Scheme (SCSS)

8.20% p.a; interest paid every quarter

Post Office Savings Account

4.0% p.a; interest compounded on an annual basis

Post Office Recurring Deposit Account (RD)

6.7% p.a; interest compounded quarterly



Post Office Time Deposit Account (TD)

1-year TD – 6.9% p.a

2-year TD – 7.0% p.a

3-year TD – 7.0% p.a

5-year TD – 7.5% p.a

Interest compounded every quarter

Post Office Monthly Income Scheme (MIS)

7.4% p.a; interest paid every month

Public Provident Fund Account (PPF)

7.1% p.a; interest compounded on an annual basis

National Savings Certificate (NSC)

7.7% p.a; interest compounded on an annual basis

Sukanya Samriddhi Account (SSA)

8.0% p.a; interest compounded on an annual basis

Kisan Vikas Patra (KVP)

7.5% p.a; interest compounded on an annual basis

Note: The interest rates mentioned above are effective from October 01, 2023, and are subject to change periodically.

Features and Benefits

The Senior Citizens Savings Scheme Rule of 2019 governs the SCSS Post Office plan. Here are some of the notable characteristics of this scheme: 

  • Maturity Period

The Post Office Senior Citizens Savings Scheme has a fixed tenor of 5 years which can be extended further by 3 years with a prescribed form. The application form for the same must be submitted in the fourth year of investment.


In the case of the account holder’s demise during the tenor, the account will earn the interest rate applicable on a Post Office Savings Account. However, if it is a joint account, the surviving individual can continue with the account. 


To continue with the account, the joint holder must be eligible and must not have an existing SCSS account.

  • Premature Closure

You can close the SCSS account at any point in time after opening. However, it will attract a penalty. The amount of penalty varies depending on when you close the account. 


  1. If you close an account before the completion of 1 year, you will receive no interest. The authorities will recover the interest from the investment amount in case of the prior payment.

  2. If you close an account between the 1st and 2nd year, a penalty of 1.5% will be levied on the investment amount.

  3. If you close an account between the 2nd and 5th year, the investment amount will attract a penalty of 1%.

  • Tax Benefits

You can claim a deduction on your investment in a Post Office SCSS account under Section 80C of the Income Tax Act, 1961. The maximum deduction amount, however, is ₹1.5 Lakhs per financial year.

  • Multiple Accounts

An individual can have multiple SCSS accounts, both individually and jointly with another individual. The joint holder need not be a senior citizen. However, despite possessing multiple SCSS accounts, the collective investment in all the accounts must not exceed ₹30 Lakhs.

  • Nomination Facility

At any time during the tenure of the scheme, you can appoint a nominee by filing Form C.

Post Office SCSS: Eligibility Criteria & Documents Needed

Only individuals satisfying the required eligibility criteria can invest in the Post Office Senior Citizen scheme. Here is a quick glimpse of the criteria set by India Post. 

  • Applicants must be above 60 years of age. 

  • Retired civilian employees aged between 55 years and 60 years. However, such individuals must invest within 1 month from the date of receipt of retirement benefits. 

  • Retired defence employees aged between 50 years and 60 years. However, they must also invest within 1 month from the date of receipt of retirement benefits. 


For retired civilian and defense employees, invest within 1 month from the date of receipt of retirement benefits. 


You can invest in the SCSS scheme in the Post Office individually or jointly. The authorities attribute the investments made in a joint account to the first account holder only.


You will be required to submit the following documents when opening a SCSS account -  

  • A duly filled and signed account opening form

  • A duly filled and signed Know Your Customer (KYC) form

  • A copy of your PAN 

  • A copy of your Aadhaar card

  • A copy of your address proof

  • Latest passport-size photograph

  • A copy of the document evidencing the disbursal date of your retirement benefits

  • A copy of your employer’s certificate mentioning your retirement, VRS or superannuation


senior citizen schemes

How to Open a Senior Citizen Savings Scheme in the Post Office?

Opening a Post Office SCSS account is very easy. All you need to do is to follow the steps mentioned below.  

  • Step 1: Visit a post office near you and request the SCSS application form or download it from the official India Post website

  • Step 2: Fill in the account opening form with all the required details, including the information of the nominee

  • Step 3: Submit the required documents along with the application form along with your original ID for verification 

  • Step 4: Get the signature of a witness to complete the process

The process of your account activation will take a few days from the date of submission of the application form.

Minimum and Maximum Deposit

The minimum amount that you can invest in the Post Office SCSS is ₹1,000. On the other hand, the maximum investment amount for the scheme is ₹30 Lakhs as of 2023.


The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be a source of advice or recommending any financial investment advice or endorsement of any sort. 

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes, etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and the User should exercise due care prior to taking any decision, on the basis of the information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, trade names, logos and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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FAQs on the Post Office Senior Citizen Saving Scheme

Individuals above 60 can open an SCSS account in a Post Office. Retired civilian employees aged between 55 and 60 years can also open this account. 

Moreover, retired defense employees aged between 50 years and 60 years may also open an account provided they satisfy the eligibility criteria.

You have to invest in the SCSS account at the time of opening the account via a cheque or a demand draft.

You can nominate an individual when opening the SCSS account or at any point after the account opening by submitting Form C.

You can close your Post Office Senior Citizen Savings Scheme account at any time after the date of opening. However, the authorities will levy a penalty for premature closure. The amount of penalty levied may vary depending on when you close the account.

The rate of interest applicable to the Post Office Senior Citizens Savings Scheme is reviewed every quarter and may be subject to change. Currently, the interest rate for the scheme is 8.2% per annum from October 2023.

Yes. You can claim the investment amount as a deduction under section 80C of the Income Tax Act, 1961. Do remember that other investment options are also eligible for deduction u/s 80C. However, the cumulative limit of these instruments for 80C deduction is ₹1.5 Lakhs per financial year.

Yes. You can extend the tenor of your Post Office Senior Citizens Savings Scheme account for 3 years. You can apply for an extension within a year from the date of maturity.

A senior citizen can either open an individual account or a joint account. Note that you can open multiple accounts if you do not exceed the cumulative threshold limit of ₹30 Lakhs.

This is an investment scheme specifically designed to cater to the requirements of individuals above 60 years. The scheme has a maximum tenor of 5 years with a penalty for premature withdrawal.

There are multiple post office schemes generating handsome returns for senior citizens. A few of them include SCSS, KVP, NSC, and many others.

You can initiate online payment by filling in the ECS mandate authorising automatic debit from your bank account. Alternatively, you can also pay through a post office agent, who deposits the funds on your behalf online.

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