Senior Citizen Savings Scheme (SCSS) interest rate October-December 2026 declared: Check latest rate, limit and details

On the maximum permitted deposit of ₹30 lakh under SCSS, 8.2% rate means a quarterly payout of ₹61,500, or about ₹20,500 a month. And this remains unchanged for the December quarter.

All small savings rates for October-December 2026

SCSS Scheme details

The SCSS account is open to individuals aged 60 and above, and to retired civilian employees aged 55 and defence personnel aged 50 and above. The scheme allows a single deposit between ₹1,000 and ₹30 lakh while the account matures after five years. There is also an option to extend the SCSS account by three years.

The SCSS interest is credited quarterly. While investment qualifies for Section 80C deduction, the interest is taxable and attracts TDS once it crosses ₹50,000 a year. However, senior citizens can set off up to ₹50,000 of interest income under Section 80TTB. For every ₹10,000 invested, the scheme pays ₹205 every quarter.

Government data shows the SCSS rate was 7.4% through 2020-22, rising to 7.6% in October 2022, 8.0% in January 2023 and 8.2% from April 2023. It has not been revised any quarter since, even as the broader basket's freeze extended to a 10th quarter on Wednesday.

Under the Shyamala Gopinath Committee formula, the SCSS is benchmarked to the 5-year G-sec with a 100-basis-point spread. The 5-year G-sec averaged roughly 6.5% over the July-September reference quarter, implying a formula rate of about 7.5% against the 8.2% actually paid.

The SCSS rate is locked at the time of purchase for the full five-year tenure.

For a depositor in the 30% tax bracket, 8.2% pre-tax works out to roughly 5.74% post-tax, which is still among the best guaranteed returns available to retirees, and well above what most bank fixed deposits currently offer after the RBI's four rate cuts in 2025.