Savings Options for Senior Citizens
A comparison of the main safe savings options for retirees in India, with notes on interest, lock-in and tax.
After retirement, safety and regular income usually matter more than maximum growth. India offers several government-backed and bank options aimed at senior citizens (age 60 and above).
Senior Citizens' Savings Scheme (SCSS)
A government scheme with a fixed tenure and interest paid out every quarter. The rate is reset by the government each quarter and has generally been higher than regular bank deposit rates. There is a cap on how much one person can invest. Interest is taxable, and the deposit qualifies under Section 80C in the old regime.
Senior citizen fixed deposits
Banks pay a slightly higher rate to senior citizens on fixed deposits. Interest can be paid out monthly, quarterly or at maturity. Deposits are insured up to the standard limit per depositor per bank, so spreading large sums across banks adds safety. Use the FD calculator to compare payout choices.
Post Office Monthly Income Scheme
This pays monthly interest on a lump sum with a fixed tenure. Rates are set periodically by the government.
Withdrawals from equity or funds
For part of the corpus that needs to last 20 years or more, some retirees keep a share in equity or hybrid funds and draw regular amounts using a systematic withdrawal plan. Model how long a corpus lasts with the SWP calculator.
Tax points
Banks deduct tax at source on interest above a threshold, which is higher for senior citizens, and Form 15H can prevent deduction if your total income is below the taxable limit. See the income tax calculator to check your position.
Interest rates and limits change often. Confirm current figures with the post office, your bank or the official scheme notification.
Frequently asked questions
Is SCSS better than a senior citizen FD?
SCSS has usually paid more and is government-backed, but it has an investment cap and a fixed tenure. FDs are more flexible.
Is interest on senior citizen schemes taxable?
Yes, interest is taxed at your slab rate, with some exemption available on interest income for seniors under current rules.
More guides
Calculators
Last reviewed: October 2026. General education, not financial advice.