The Senior Citizen Savings Scheme (SCSS) interest rate for the July-September 2025 quarter is set to be announced by the Finance Ministry today, June 30, 2025.
Thank you for reading this post, don't forget to subscribe!Currently, the SCSS offers an interest rate of 8.2%. This rate has been constant since April 1, 2025.
What to Expect:
There’s a strong expectation that the SCSS interest rate, along with those of other small savings schemes, might see a reduction this quarter. This is primarily driven by the decline in secondary market yields of Central Government securities (G-secs). G-sec yields have been falling since January 2025, influenced by a 1% reduction in the repo rate by the Reserve Bank of India (RBI).
However, it’s also possible the government could choose to maintain the current 8.2% rate. This could be a decision to continue providing a stable and guaranteed income to the millions of senior citizens who depend on this scheme.
About the SCSS:
- Eligibility: Open to Indian citizens aged 60 and above. Retired civilian employees (55-60 years) and retired defense employees (50-60 years) can also invest within a month of receiving retirement benefits.
- Investment Limit: Individuals can deposit a maximum of ₹30 lakh. A couple can jointly deposit ₹30 lakh each in separate accounts.
- Interest Payment: Interest is paid quarterly on April 1, July 1, October 1, and January 1.
- Taxation: Deposits are eligible for Section 80C benefits up to ₹1.5 lakh. However, the interest earned is taxable.
