Post Office Savings Schemes
Post office schemes are offered by the government of India through Department of Posts which is popular in India as “Postal Department”. Department of post has brought several schemes for the benefit of the general public.

Senior Citizen Savings Scheme (SCSS): A Reliable Investment for Retirees
The Senior Citizen Savings Scheme (SCSS) is a government-backed savings instrument tailored for Indian citizens aged 60 years and above. Introduced by the Government of India, it aims to offer a secure, steady income for senior citizens post-retirement.
Key Features:
- Eligibility: Indian citizens aged 60 or above. Retired defense personnel can invest from the age of 50 under certain conditions.
- Minimum Deposit: ₹1,000.
- Maximum Investment: ₹30 lakhs (as per recent updates).
- Tenure: 5 years, extendable by 3 more years.
- Interest Rate: 8.2% per annum (as of Q1 FY 2025), reviewed quarterly.
- Interest Payout: Quarterly basis.
- Tax Benefits: Investments qualify for deduction under Section 80C of the Income Tax Act up to ₹1.5 lakhs per annum.
Benefits of Post Office Schemes(SCSS):

- High-Interest Rate: Offers better returns than most bank FDs.
- Government Backing: Ensures safety of capital.
- Regular Income: Quarterly interest payouts make it ideal for pensioners.
- Premature Withdrawal: Allowed after 1 year with nominal penalty.
SCSS vs Fixed Deposits (FDs)
Feature | SCSS | Bank FD (Senior Citizen) |
---|---|---|
Interest Rate | ~8.2% (Govt. set) | ~7.0% to 7.75% (varies by bank) |
Tenure | 5 years (extendable to 8) | Flexible (7 days to 10 years) |
Interest Payout | Quarterly | Monthly/Quarterly/Annually |
Tax Benefit | 80C (up to ₹1.5L) | 80C only for 5-year tax saver FDs |
Safety | Sovereign guarantee | Bank-deposit insurance (₹5L limit) |
Conclusion:
The SCSS is an excellent low-risk, high-return option for senior citizens seeking regular income with government assurance. While FDs offer flexibility, SCSS stands out for better returns and superior safety. There are other postal schemes also like Sukanya Samriddhi Account.