Senior Citizen Savings Scheme: Government Retains 8.2% Interest For April-June 2025

The Senior Citizen Savings Scheme (SCSS) is specifically designed to provide financial security to retirees, offering higher returns compared to many other savings options. This government-backed scheme is one of the most preferred investment avenues for senior citizens seeking stability and assured returns.

SCSS Interest Rate For April-June 2025

The government revises interest rates on small savings schemes every quarter based on the economic scenario and market conditions. However, according to a notification by the Department of Economic Affairs (DEA) dated March 28, 2025, interest rates on small savings schemes remain unchanged from the previous quarter.

As per the circular, "The rates of interest on various Small Savings Schemes for the first quarter of FY 2025-26 starting from April 1, 2025 and ending on 30th June 2025, shall remain unchanged from those notified for the fourth quarter (1st January 2025 to 31st March 2025) of FY 2024-25."

Similar to the last quarter, SCSS will continue to offer an 8.2 per cent interest rate per annum on deposits. Notably, for the January-March quarter of FY 2024-25, the government had also kept the rates unchanged, indicating a stable policy towards small savings instruments.

Who Can Open A Senior Citizen Savings Scheme Account?

An individual is eligible to open an SCSS account if they meet the following criteria:

Age Criteria:

• Individuals aged 60 years or above on the date of account opening.
• Individuals aged between 55 and 60 years, who have retired under Superannuation, Voluntary Retirement Scheme (VRS), or Special VRS.
• Retired Defence Services personnel (excluding Civilian Defence employees) can open an account on attaining the age of 50 years, subject to fulfilling other specified conditions.
• Joint Account Facility: A depositor may open an account individually or jointly with their spouse.

Minimum and Maximum Deposit Limits

• The account can be opened with a minimum deposit of Rs. 1,000 or any sum in multiples of Rs. 1,000.
• The maximum deposit limit is Rs. 30 lakh. At any given point, the total investment in SCSS by a senior citizen cannot exceed Rs. 30 lakh.
• The deposit tenure is 5 years, with an option to extend for an additional 3 years.

When Is Interest Payable?

Interest is payable from the date of deposit up to March 31 / June 30 / September 30 / December 31, and thereafter, it is paid on the first working day of April, July, October, and January.

Other Features Of SCSS

• Regular Income: Quarterly interest payouts provide a steady income stream for retirees.
• Flexibility with Premature Closure: While the scheme has a fixed tenure, it allows premature closure with minor penalties, ensuring liquidity if needed.

For senior citizens seeking a stable and high-yield investment option, the Senior Citizen Savings Scheme (SCSS) remains an excellent choice, offering financial security, tax benefits, and reliable returns.