SCSS interest: Why is the quarterly payment I received lower than expected at 8.2%?

A senior citizen invested ₹4 lakh under the Senior Citizen Savings Scheme (SCSS) in August 2025 and received the first instalment of interest payment on October 1, 2025. However, the interest she received was lower than what she had expected.

Another senior citizen plans to start an SCSS account with an investment of ₹25 lakh from November 17, 2025. But he is not sure when he will get the first instalment of the interest payment.

The following answers both situations:

The SCSS scheme allows a senior citizen to invest up to ₹30 lakh at any time of the year. Against this investment, the scheme offers quarterly interest payments in a linked savings account.

Senior citizens can opt for auto-credit of interest in a savings account. In case a senior citizen does not claim the interest every quarter, then such amount does not earn additional interest.

The Post Office website says the following about interest payment under SCSS:

"Payable quarterly from the date of deposit to 31st March/30th June/30th September/31st December and credited to the depositor’s Savings Account on 1st of April/ July/ October / January"

The above means that if you start your investment on, say, October 7, then the first interest payment will be calculated from October 7 to December 31, and the first payment to the savings account will be made on January 1.

In case the deposit is made during the quarter, then the post office may pay the first interest installment on a pro-rata basis instead of paying the interest for the full quarter.

For example, if the first investment is made on August 26, then interest will be calculated from August 26 till September 30 and paid on October 1.

Similarly, if the investment date is November 17, then the interest will be calculated from November 17 to December 31 and paid on January 1.

Sometimes, the post office may pay a little higher interest in the first instalment due to accounting errors. However, it may adjust such errors in future instalments.

What is the current SCSS interest rate?

The next review of SCSS and other small savings interest rates is expected on December 31, 2025.