Senior Citizen Savings Scheme (SCSS) interest rate for July-September 2025

2 min read | Updated on July 01, 2025, 09:31 IST

SUMMARY

Latest SCSS interest rate: The SCSS interest rate has remained unchanged at 8.2% since April 1, 2025. And it will remain the same for the upcoming quarter, according to the Finance Ministry.

Revised SCSS interest rate is expected to be announced today. | Image source: Shutterstock

SCSS interest rate July-September 2025: The Finance Ministry announced the Senior Citizen Savings Scheme (SCSS) interest rate for the July-September quarter of FY 2025-26 on Monday, June 30, 2025.

The SCSS scheme continues to offer 8.2% interest to senior citizens, which is much better than the fixed deposit interest rates offered by most of the leading banks.

Who can invest in SCSS?

The SCSS account can be opened by a senior citizen aged above 60 years. Retired civilian employees above 55 years and below 60 years, and retired defence employees aged above 50 years and below 60 years can also open this account.

The government also allows senior citizens to open the SCSS account either individually or jointly with their spouses. However, the whole amount of the deposit in a joint account is attributable only to the first account holder.

The SCSS scheme offers 8.2% interest per annum. And the maximum deposit an individual can make in this scheme is ₹30 lakh. A senior citizen couple can deposit ₹30 lakh each in their separate SCSS accounts.

The interest on SCSS deposits is payable from the date of deposit to March 31/September 30/December 31 in the first instance, and thereafter, interest is payable on April 1, July 1, October 1, and January 1. We have explained the SCSS interest rate payment system in detail in this article.

SCSS interest rate: What was expected?

The SCSS interest rate has remained unchanged at 8.2% since April 1, 2023. The scheme helps millions of senior citizens by providing a guaranteed income on deposit of a lump sum.

Earlier, a reduction in the SCSS interest rate, along with other small savings schemes, was expected. This was due to the falling secondary market yield of Central Government securities (G-secs).

The interest rates of small savings schemes like SCSS, NSC, PPF, SSY track the yields of G-secs of comparable maturities in the secondary market.

Since January 2025, G-sec yields have declined amid a 1% reduction in the repo rate by the Reserve Bank of India (RBI). This provided a compelling reason for the Government to reduce the SCSS interest rate.

However, the Government has decided to keep the SCSS interest rate unchanged.