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Retirement

Senior schemes: SCSS and post-office MIS

Quarterly income at 8.2%, the ₹30 lakh caps, and what the payout does not do.

Two post-office schemes dominate Indian retirement-income planning: the Senior Citizens Savings Scheme (SCSS) and the Monthly Income Scheme (MIS). Both pay notified small-savings rates — SCSS 8.2% for the current quarter — with hard deposit caps and five-year terms. This guide covers who can open them, how the payouts work, and the inflation limit that belongs in every comparison.

SCSS: the quarterly payout scheme

SCSS is for those 60 and over (55 with VRS, within set windows): deposits up to ₹30 lakh per individual earn the notified rate — 8.2% for the current quarter — paid quarterly for five years, with one three-year extension available. The deposit qualifies for 80C, but the interest is fully taxable at slab, with TDS above ₹50,000 a year for seniors. At maturity the deposit returns; nothing compounds inside the scheme.

Post-office MIS: monthly, with a ₹9 lakh cap

The Monthly Income Scheme pays the notified rate monthly on deposits up to ₹9 lakh single (₹15 lakh joint) for five years. Like SCSS, the rate is fixed for the term at entry, the payout is taxable at slab, and the deposit comes back at maturity. There is no age restriction, which makes MIS the option for a spouse under 60 who needs a monthly flow.

What neither scheme does: grow

Both are payout schemes with level payments — the ₹30,750 quarterly SCSS cheque on ₹15 lakh is the same in year five as in year one, while prices rise. For a 25-year retirement that is a drawdown plan with no step-up, so most workable designs pair these schemes (near-term income) with a growth corpus (later income) rather than treating either as complete. The rates are notified quarterly and can change at entry of new deposits; existing deposits keep their entry rate for the term.

Opening and operating

Both schemes open at any post office (and select banks for SCSS) with KYC and age proof. SCSS allows multiple accounts within the ₹30 lakh aggregate cap; premature closure is allowed after one year with a deduction scaled to the months completed. Nomination is available and worth doing the day the account opens.

Model SCSS quarterly payouts →

Questions on senior schemes: scss and post-office mis

What rate is SCSS paying now?

8.2% a year for the current quarter, paid quarterly, per the Ministry of Finance's small-savings notification. Rates are revised quarterly and new deposits take the notified rate at entry; this site has no live rates feed, so confirm on the DEA or NSI pages before depositing.

SCSS or MIS for monthly income?

SCSS pays quarterly at a higher notified rate with a ₹30 lakh cap and an age gate of 60 (55 for VRS); MIS pays monthly with a ₹9 lakh (₹15 lakh joint) cap and no age gate. Both are five-year, both taxable at slab, both level payouts — most households that qualify use SCSS first for the higher rate, then MIS for the under-60 spouse or overflow.

Is SCSS interest tax-free for senior citizens?

No. The deposit qualifies for 80C, but the interest is fully taxable at your slab, and TDS applies above ₹50,000 of interest a year for seniors. The quarterly payout is gross before tax — model the net number before comparing with a taxable SWP.

Educational, not advisory — and never a projection. LetsInvest is a research publication, not a SEBI-registered investment adviser, and we run no live rates or returns feed. The withdrawal planner and corpus check are illustrations of numbers you enter. Confirm anything that matters with the scheme's own authority (PFRDA, EPFO, the post office or your fund house) before you act.

Sources

Reviewed 24 Sept 2026. Rates are notified quarterly and rules change — PFRDA, EPFO, India Post and the Department of Economic Affairs are the authority, and this hub links straight to them.