Government Scheme
4.7/5
Senior Citizens Saving Scheme (SCSS)
Government of India
Best investment for retirees. Highest government rate for senior citizens with quarterly income option.
Interest Rate
7.1% p.a.
Lock-in
15 years
Min Investment
₹500/year
Tax Benefit
80C
Tax Benefits
- Investment deductible under Section 80C up to ₹1.5 Lakh
- Interest earned is tax-free
- Maturity amount is completely tax-free (EEE status)
Key Features
- Highest rate for seniors at 8.2%
- Quarterly interest payout
- Section 80C benefit
- Government guaranteed
- Rs 30 lakh limit (increased)
Investment Details
Minimum
₹500/year
Maximum
₹1.5 Lakh/year
Lock-in Period
15 years
Pros
- Highest rate for seniors at 8.2%
- Quarterly interest payout
- Section 80C benefit
- Government guaranteed
- Rs 30 lakh limit (increased)
- Can open at any post office or bank
Cons
- Only for 60+ (or 55+ retired)
- Interest fully taxable
- TDS if interest exceeds Rs 50K/year
- 5-year lock-in
- Premature closure penalty 1-1.5%
Eligibility
Age Requirement
18 - 60 years
Required Documents:
- PAN Card
- Aadhaar Card
- Passport Photo
Government Backed
This is a sovereign scheme backed by Government of India. Your investment is 100% safe.
Frequently Asked Questions
What is the current PPF interest rate?›
PPF rate is 7.1% per annum (Q1 FY2026-27), compounded annually. The rate is reviewed every quarter by the Ministry of Finance.
Can I withdraw from PPF before 15 years?›
Partial withdrawal is allowed from year 7 (up to 50% of balance at end of year 4). Premature closure is only allowed after 5 years for medical emergencies or higher education.
Is NPS better than PPF?›
NPS offers higher potential returns (10-12% in equity) with additional ₹50K 80CCD(1B) deduction. PPF gives guaranteed 7.1% with fully tax-free maturity (EEE). NPS is better for higher returns; PPF for guaranteed safety.
What is the maximum investment in PPF per year?›
₹1.5L per financial year. Minimum is ₹500/year. Deposits can be made in up to 12 installments per year.
Can I have a PPF account and NPS account both?›
Yes. Both accounts can be held simultaneously. Combined 80C deduction is ₹1.5L, but NPS gives additional ₹50K under 80CCD(1B) — total ₹2L tax benefit.
What happens to PPF at maturity?›
After 15 years, you can either withdraw the full amount (tax-free) or extend in blocks of 5 years with or without further contributions. The extension earns the prevailing interest rate.