About Senior Citizen Savings Scheme

Loanpao’s Senior Citizen Savings Scheme (SCSS) is a government-backed savings option designed for individuals aged 60 and above. Offering a 7.4% interest rate with quarterly payouts, SCSS ensures a steady income stream for retirees, along with tax benefits and principal safety.

Why Choose SCSS?

  • Interest Rate: 7.4% per annum (as of May 2025)
  • Tenure: 5 years, extendable by 3 years
  • Payouts: Quarterly interest credited to linked bank account
  • Tax Benefits: Investment eligible for Section 80C (up to ₹1.5 lakh); interest taxable
  • Investment Limits: ₹1,000–₹30 lakh per individual
  • Safety: 100% backed by the Government of India
  • Premature Withdrawal: Available after 1 year with penalties (1–1.5%)

Are You Eligible?

Criteria Requirement
Age 60+ years; 55+ for VRS/retirees, 50+ for defense personnel (excluding civilians)
Applicant Type Indian resident (individuals or joint with spouse)
KYC Compliance Mandatory
Bank Account Active savings account for interest payouts
Investment ₹1,000–₹30 lakh per individual

What Documents Do You Need?

  • KYC: Aadhaar, PAN, or passport
  • Age Proof: Birth certificate, voter ID, or senior citizen card
  • Address Proof: Utility bill or rental agreement
  • Bank Details: Cancelled cheque or bank statement
  • Photograph: Passport-size
  • Application Form: SCSS Form A

Indicative Returns

Investment (₹) Tenure Quarterly Interest (₹) Total Interest (₹)
1,00,000 5 years 1,850 37,000
5,00,000 5 years 9,250 1,85,000
30,00,000 5 years 55,500 11,10,000

Extra Charges:

  • Account Maintenance: Free
  • Premature Closure: 1.5% penalty (1–2 years), 1% (2–5 years)

Note: Rate (7.4%) is indicative as of May 2025, revised quarterly. Interest is taxable, and values are approximate.

Calculate Your Returns

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How to Invest in SCSS

  • Visit loanpao.in, a Post Office, or authorized bank (e.g., SBI, ICICI).
  • Complete KYC and submit Form A with documents.
  • Deposit ₹1,000–₹30 lakh via cash, cheque, or transfer.
  • Link a savings account for quarterly interest payouts.
  • Receive a passbook for tracking.
  • Opt for 3-year extension at maturity or withdraw with penalties after 1 year.

Common Questions About SCSS

What is SCSS?
A government-backed savings scheme for senior citizens offering 7.4% quarterly interest for 5 years.
Who can invest in SCSS?
Indian residents aged 60+, retirees 55+ (VRS), or defense personnel 50+ (excluding civilians).
Are there tax benefits?
Investments qualify for Section 80C (up to ₹1.5 lakh); interest is taxable.
Can I withdraw early?
Yes, after 1 year with a 1.5% penalty (1–2 years) or 1% (2–5 years).
Can NRIs invest in SCSS?
NRIs are not eligible to open SCSS accounts.
What is the maximum investment limit?
₹30 lakh per individual, including all SCSS accounts.
Can I extend the tenure?
Yes, by 3 years at maturity, with the prevailing interest rate.