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SCSS and other small savings plans have maintained their current interest rates for the April–June 2025 quarter.
The SCSS provides senior individuals with a safe investment choice. (Unsplash/Representative Image)
A safe investment choice for senior citizens, the Senior Citizen Savings Scheme (SCSS) provides a guaranteed income together with tax advantages. Every quarter, the government changes the interest rates on post office savings plans, such as the Senior Citizen Savings Scheme (SCSS). All small savings plans’ rates remained the same for this quarter.
This plan, distributed by India Post and approved banks, provides senior citizen investors with a quarterly dividend, or regular income, and is well-liked by retirees seeking steady returns and financial stability. The SCSS and all other Post Office savings plans have maintained the interest rate that was previously set for the April–June 2025 quarter.
For the April–June 2025 quarter, was there an increase in interest rates?
The interest rate on SCSS is reviewed by the government every quarter, and it is revised if necessary. As of right now, the government has not changed the interest rate on SCSS for the April–June 2025 quarter. An annual interest rate of 8.2 per cent will be paid to SCSS investors on their deposits. The interest must be paid every quarter and is completely taxed.
The minimum deposit required to open the account is Rs. 1,000, or any amount in multiples of Rs. 1,000 up to Rs. 30,000,000. Just to be clear, a senior citizen can never invest more than Rs 30 lakh in the SCSS at any one time. The deposit’s term is five years, with the possibility of a three-year extension.
Additionally, the government has chosen to maintain the same interest rates for small savings plans for the FY26 quarter that runs from April to June. The last time post office savings plans were updated was during the January–March quarter of FY24 when the government raised the interest rates on Sukanya Samriddhi Yojana (SSY) and three-year time deposits.
More specifically, the SSY rate was raised from 8 per cent to 8.2 per cent, while the interest rate on three-year time deposits was hiked from 7 per cent to 7.1 per cent. All other small savings plans maintained their current interest rates.
Senior Citizen Savings Scheme (SCSS): What Are The Premature Closure Rules
– After it is opened, the account can be closed whenever you choose.
– If the loan is closed within the first year, any credited interest will be recouped and no interest will be paid.
– 1.5 per cent of the principal amount will be subtracted as a penalty if the loan is closed after a year but before the two-year mark.
– A penalty equal to one per cent of the principal amount will be subtracted if the loan is closed after two years but before the full five years have passed.
– After a year of extension, extended accounts can be closed without incurring any fees.
