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.
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.