A retirement focused savings scheme promoted by the Government of India.




  1. An SCSS account can be opened at any post office or at specified banks.
  2. Any individual who has attained 60 years of age is eligible to open the account. An individual between the age of 55 and 60 is also eligible to open an account if he/she has retired on superannuation or under a voluntary retirement scheme. However, the account should be opened within a month of receiving the retirement benefits and the deposit in SCSS account should not exceed the amount of such benefits received.
  3. NRIs and HUFs are not eligible to open an SCSS account.
  4. The rules allow for only one deposit in the SCSS account in multiples of ₹1,000 and the maximum deposit cannot exceed ₹15 Lakhs.
  5. An individual may operate more than one account in individual capacity or jointly with spouse. However, the balance in all accounts put together cannot exceed the maximum limit of ₹15 Lakhs.
  6. The current rate of interest is 8.1% per annum payable every quarter (not compounded). Tax is deducted at source (TDS) on the interest when it exceeds ₹10,000 per annum.
  7. Nomination facility is available at the time of/after opening the account. The account can be transferred from one post office to another.
  8. The maturity period is 5 years. The account can be extended for a further period of 3 years within 1 year of the maturity and can thereafter be closed at any time after the expiry of the first year of extension without any penalty.
  • If the account is neither closed nor extended after maturity, the account is entitled to interest at the rates applicable to a Post Office Savings Account up to the end of the month preceding the month of closure/extension.
  • Premature closure is allowed after one year on deduction of an amount equal to 1.5% of the deposit and after 2 years 1% of the deposit.


Although the investment qualifies for tax benefit under section 80C of the Income Tax Act, the interest is fully taxable.