Senior Citizen Savings Scheme: 7 things senior citizens should know about SCSS going into 2026

For senior residents in India, the Senior Citizen Savings Scheme (SCSS) is a well-liked fixed-income government-backed plan. As 2026 approaches, the following are important considerations for the aged, even though the SCSS's elements are essentially unchanged.

1. Interest-rate cycle likely to soften in 2026

2. Opportunity to lock in current SCSS rates

The rate has been extremely competitive for the fiscal year 2025–2026, most recently at 8.2% annually. Because of this, it's a good time for seniors to lock in relatively greater returns before any future rate reductions. Regardless of any further quarterly rate adjustments, the interest rate is set for the whole five years after you start the account.

3. Quarterly interest payouts remain crucial for cash flow

An important benefit for retirees who rely on a steady income is that SCSS pays interest every quarter on April 1st, July 1st, October 1st, and January 1st. Regular payments assist in controlling home, medical, and emergency costs.

4. Investment limits

The maximum investment limit remains ₹30 Lakh per individual (which can be up to ₹60 Lakh for a senior couple with two separate accounts).

5. Extension option

The maturity period is five years, with the option to extend it for an additional three years upon maturity. According to India Post, an account holder may extend the account any number of times for successive three-year blocks, provided the extension request is submitted within one year from the date of maturity or from the end of each extended three-year block. The extension must be made using the prescribed form at the concerned Post Office.

Extended accounts will earn interest at the rate applicable on the date of maturity or on the date of each extended maturity period.

Given that the quarterly interest rate review and the rate-setting announcement for the January–March 2026 quarter are expected in the last week of December, senior citizens whose SCSS accounts mature this month may benefit from extending their accounts now to lock in the 8.2% rate.

6. Taxation

Section 80C allows a deduction of up to ₹1.5 lakh for investments made in the Senior Citizens Savings Scheme. However, depending on your tax slab, you have to pay the interest as it is completely taxable.

You can claim up to ₹50,000 deduction under 80TTB, but if your interest income crosses ₹50,000, the bank/post office must deduct TDS on the excess interest (unless you submit Form 15H and your taxable income is below the threshold).

7. Why is tax planning important