SCSS Maturing Soon? Extend It or Lose 8.2%

Senior Citizens Savings Scheme pays 8.2% per year with quarterly payouts. If your SCSS account is about to mature, you have two ways to extend it — but missing the deadline could mean losing interest for the gap period. Here's what to do.

Here's what happened: SCSS accounts have a 5-year tenure and can be extended once for 3 additional years by submitting a written request within 1 year of maturity.. The government currently offers 8.2% per annum interest on SCSS, paid out every quarter — one of the highest guaranteed returns for retirees in India.. If a matured SCSS account is neither closed nor extended, the balance earns only the Post Office Savings Account rate until the holder acts on it..

What you should do: Check your SCSS passbook or account statement immediately to confirm your exact maturity date — plan your extension request at least 30 days in advance.. Visit your post office branch or authorised bank and submit Form B (Extension Form) within 1 year of maturity to lock in the 3-year extension.. If you no longer need the income stream, compare premature closure rules versus reinvesting in a new SCSS account — couples can open separate accounts to double the ₹30 lakh deposit limit..

If you extend SCSS within 1 year of maturity, you can still close it prematurely after 1 year of the extended period with only a 1% penalty — giving you flexibility if rates change.