A SCSS of ₹15,00,000 for 5 years at 8.2% is ₹30,750.
Quarterly Interest = Principal × Annual Interest Rate ÷ 4
| Input | Value |
|---|---|
| Investment Amount | ₹15,00,000 |
| Interest Rate | 8.2% |
| Tenure | 5 yr |
| Quarterly Income | ₹30,750 |
| Total Interest | ₹6,15,000 |
| Total Received (incl. capital) | ₹21,15,000 |
| Approx Monthly Income | ₹10,250 |
How SCSS generates retirement income
The Senior Citizen Savings Scheme is the government’s best deal for retirees: ~8.2% on up to ₹30 lakh, paid out as quarterly interest — a sovereign-guaranteed pension substitute for anyone 60+ (or 55+ with retirement proceeds, within a month of retiring). The calculator shows the quarterly cheque and the totals over the 5-year term (extendable by 3).
Can I withdraw from SCSS before maturity?
Yes, with penalties: 1.5% of the deposit if closed after year 1, 1% after year 2 (closure within a year refunds the deposit with no interest beyond what’s paid). The quarterly payouts mean you’re never locked away from the *income* — premature closure is mainly for emergencies needing the capital itself.
Is SCSS better than an FD for a senior citizen?
Usually yes: SCSS’s ~8.2% beats even senior-citizen FD rates (~7.5-7.75%) with a sovereign guarantee rather than a bank one, plus 80C benefit on the deposit (old regime). FDs win only for amounts beyond the ₹30 lakh SCSS cap, for tenures/liquidity SCSS doesn’t offer, or when monthly (not quarterly) payouts matter.