What is SCSS?

Background

The Senior Citizens’ Savings Scheme (SCSS) is a government-backed fixed-income product for Indians aged 60 and above (with some exceptions). It offers a relatively high, fixed interest rate and sovereign guarantee.

Explanation

You can invest up to government-specified limits in SCSS for a 5-year term, extendable once. Interest is paid quarterly and is taxable as per your slab. SCSS can be a core income source for conservative retirees who want predictable cash flows.

Example

If you invest ₹15 lakh at 8.2%, you earn about ₹1.23 lakh per year (around ₹10,250 per month) credited quarterly, covering a chunk of your monthly expenses alongside other income.

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