SCSS: How much should a senior citizen invest to earn ₹25,000 every quarter at 8.2%?

Are you a senior citizen looking for a safe investment that can provide predictable returns and a steady income after retirement? If your goal is to generate around ₹ 25,000 every quarter, the Senior Citizens’ Savings Scheme (SCSS) could be one option worth considering.

SCSS is a government-backed savings scheme designed specifically for senior citizens. It provides regular interest payouts, making it useful for retirees who want a predictable source of income alongside their other investments.

The SCSS interest rate is currently 8.2% per annum for the July-September 2026 quarter. Once you open an SCSS account, the interest rate applicable to your deposit remains fixed for the five-year tenure.

SCSS interest is calculated on a quarterly basis. It accrues up to 31 March, 30 June, 30 September and 31 December and is paid on the first working day of April, July, October and January, respectively.

This means investors receive four interest payouts every year, which can make SCSS a useful option for retirees looking for a regular income stream .

At an annual interest rate of 8.2%, the quarterly SCSS payout can be calculated as:

Since SCSS deposits are made in multiples of ₹ 1,000, an investment of ₹ 12.20 lakh would generate approximately ₹ 25,010 per quarter at an 8.2% interest rate.

This calculation assumes that the 8.2% rate remains applicable and that the quarterly interest is withdrawn rather than reinvested.

The ₹ 25,010 quarterly payout on a ₹ 12.20 lakh investment is a gross amount before tax. The actual amount available to an investor could be lower depending on their tax liability and overall income.

In simple terms, at the current SCSS interest rate of 8.2%, a senior citizen would need to invest around ₹ 12.20 lakh to generate ₹ 25,000 every quarter. The scheme has a five-year tenure and offers quarterly interest payouts, making it an option for retirees who prioritise predictable income.

However, investors should consider their tax position before investing. They should also remember that while the interest rate on an existing SCSS deposit remains fixed, the government can revise small-savings interest rates for new deposits in future quarters.

Disclaimer: SCSS interest rates and rules are subject to government revisions. Returns mentioned are indicative and before tax. Investors should verify the latest rules and consult a qualified financial adviser before investing.

Shivam writes on personal finance, equity markets, and mutual funds. He has previously contributed to several leading publications, including Moneycontrol. He can be reached at shivam.shukla@htdigital.in

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