Senior citizens savings scheme: 8.2% pays Rs 61,500 a quarter on Rs 30 lakh
Published
The rate stays at 8.2% for October to December 2026. What the maximum deposit earns each quarter, how much tax takes, who can open an account and what closing early costs.
Original report · Explained
Rates as of 22 October 2026, for October to December 2026. This article is for information only and is not investment advice.
The senior citizen savings scheme interest rate is 8.2% a year for October to December 2026, unchanged from July to September, according to Upstox and CAclubindia (Upstox, 2026; Goswami, 2026). At that rate, the maximum deposit of Rs 30 lakh earns Rs 2.46 lakh a year, paid as Rs 61,500 every quarter before tax.
That is about Rs 20,500 a month (Rs 61,500 divided by 3). But the interest is fully taxable, so what a retiree keeps depends on their tax slab.
How Rs 30 lakh earns Rs 61,500 a quarter
Rs 30 lakh at 8.2% is Rs 2.46 lakh a year; divided by four, that is Rs 61,500 a quarter, Upstox calculated, and the arithmetic checks (Upstox, 2026). Interest is paid on 1 April, 1 July, 1 October and 1 January, CAclubindia reported (Goswami, 2026).
The rate on the deposit date is locked for the five-year term, and the account can be extended once, by three years (Upstox, 2026; ClearTax, 2026). A deposit made this quarter keeps 8.2% for five years, whatever later quarters bring.
Tax is where the headline figure shrinks.
Tax cuts the real return
SCSS interest is taxed at the depositor's slab rate, CAclubindia and ClearTax report (Goswami, 2026; ClearTax, 2026). In the 30% slab, 8.2% falls to about 5.74% after tax, excluding cess, Upstox calculated (Upstox, 2026). On Rs 30 lakh, that leaves about Rs 1.72 lakh a year (Rs 2.46 lakh minus 30%).
"Judge it on post-tax yield," wrote Shivangi Goswami for CAclubindia.
Tax is deducted at source once interest tops Rs 1 lakh a year for senior citizens, according to CAclubindia and ClearTax; Upstox still gives the older Rs 50,000 limit. The deposit can be deducted up to Rs 1.5 lakh under Section 80C, in the old tax regime only (ClearTax, 2026).
How it compares with other small savings schemes
Upstox lists these rates for October to December 2026 (Upstox, 2026):
- Senior Citizens Savings Scheme: 8.2%
- Sukanya Samriddhi Yojana: 8.2%
- National Savings Certificate: 7.7%
- Post Office Monthly Income Scheme: 7.4%
- Public Provident Fund: 7.1%
The Finance Ministry sets these rates every quarter (Goswami, 2026).
Who can open an account, and how
People aged 60 or over can open one. Civilian retirees on voluntary retirement aged 55 to 60, and retired defence staff aged 50 to 60, can too, if they invest within one month of receiving retirement benefits. NRIs and Hindu Undivided Families cannot (Goswami, 2026; ClearTax, 2026).
Accounts open at India Post or an authorised bank, ClearTax says (ClearTax, 2026). The paperwork:
- the account opening form, PAN and Aadhaar
- ID, address and age proof, and 2 photographs
- a nominee and a savings account for payouts
The deposit runs from Rs 1,000 to Rs 30 lakh per person, and the depositor gets a passbook.
Closing early costs money
- Before 1 year: no interest is paid.
- Between 1 and 2 years: 1.5% is deducted.
- After 2 years: 1% is deducted.
These penalties come from CAclubindia and ClearTax (Goswami, 2026; ClearTax, 2026).
Questions people are asking
What is the senior citizen savings scheme interest rate now?
8.2% a year for October to December 2026, the same as the previous quarter.
How much interest does Rs 30 lakh earn in SCSS?
Rs 61,500 a quarter, or Rs 2.46 lakh a year, before tax.
Is SCSS interest taxable?
Yes, at the slab rate. Tax is deducted at source above Rs 1 lakh of interest a year, according to CAclubindia and ClearTax.
Who can open an SCSS account?
Anyone aged 60 or over, with exceptions for some early retirees from age 50 or 55.
What happens next
The 8.2% rate applies until 31 December 2026, and the next payout falls on 1 January 2027. The rate for January to March 2027 has not been announced (Goswami, 2026).
References
- Upstox News Desk (2026) Senior Citizen Savings Scheme (SCSS) interest rate October-December 2026 declared. Upstox. Available at: SCSS interest rate October-December 2026 declared (Accessed: 22 October 2026).
- Goswami, S. (2026) Senior Citizen Saving Scheme Latest Interest Rate From October 2026. CAclubindia. Available at: Senior Citizen Saving Scheme Latest Interest Rate From October 2026 (Accessed: 22 October 2026).
- ClearTax (2026) Senior Citizen Savings Scheme (SCSS) 2026: Interest Rate, Tax Benefits and How to Open Account. ClearTax. Available at: Senior Citizen Savings Scheme (SCSS) 2026 (Accessed: 22 October 2026).
How we did this
On 22 October 2026 we read the October-December rate reports from Upstox and CAclubindia, and the scheme rules in ClearTax's guide. We checked Upstox's Rs 61,500 calculation, worked out the monthly and after-tax figures, and gave both limits where the sources disagree on tax deducted at source. We did not open the Finance Ministry's rate notification. The hero image is a flow chart we drew from these sources; upload it with the story.
This article is for information only and is not investment advice. Readers should consult a registered adviser before investing.
This story was produced, reviewed, edited and verified by the reporter before publication, with AI assistance where required.
Covered by 3 outlets across the spectrum: 0% left, 33% center, 0% right.
Who is covering this story
- Center (1): CAclubindia
- Not yet rated (2): ClearTax, Upstox
Sources
- Senior Citizen Savings Scheme (SCSS) 2026: Interest Rate, Tax Benefits and How to Open Account — ClearTax (not yet rated) ·
- Senior Citizen Savings Scheme (SCSS) interest rate for October-December 2026 — Upstox (not yet rated) ·
- Senior Citizen Saving Scheme Latest Interest Rate From October 2026 — CAclubindia (center) ·