Senior Citizens Savings Scheme (SCSS) is one of the most popular investment tools for post-retirement life because SCSS offers highest interest rates and safety of investments. The scheme allows senior citizens to meet their regular cash requirements as the interest is paid quarterly.

Currently, SCSS offers 8.2 percent interest, higher than all other small savings schemes. The National Savings Institute’s (NSI) historical data shows some interesting SCSS rate trends.

While the SCSS rates have steadily dropped since March 2016, it has witnessed a gradual increase after the January-March quarter of 2023, when it was 8.00 percent.

In the April-June quarter, the government further increased the rates to 8.2 percent, which remained the same for the last quarter of the year. Interestingly, between August 2004 and March 2012, the interest rates were at 9.0 percent, which increased to 9.30 percent between April 2012 and March 2013. However, it began to drop in the April-June quarter of 2016.

Here are the historical rates of the SCSS scheme since 2004 provided by NSI on its website.

What Is A Senior Citizens’ Savings Scheme (SCSS)?

Senior Citizen Savings Scheme (SCSS) is a government-backed social security program that allows older individuals to earn higher interest rates on their small savings for post-retirement life. SCSS currently offers higher interest rates than most bank fixed deposit plans. Indians aged 60 and older and eligible retirees above the age of 55 but less than 60 can open the account.

The government has recently changed the SCSS norms to provide more convenience to senior citizens. For instance, an individual can now open an SCSS account three months after receiving the retirement benefits instead of one month. They can also extend the account indefinitely after its maturity in blocks of three years.

According to the government, the SCSS scheme has collected over Rs 1 lakh crore in the first half of the financial year 2023-24. The money collected from the depositors is directed to the National Small Savings Fund (NSSF), which the government uses for financing its fiscal deficit and investing in government securities.