Lesson 2 of 3 · 7 min
What 60-plus money is built on
SCSS, senior deposit rates, the deliberately modest EPS pension and the NPS annuity — four instruments compared as categories, with who stands behind each.
What unlocks at which age
58
EPS pension can begin
For those with ten years of contributory service under the Employees' Pension Scheme.
60
Senior citizen status
SCSS opens (some early retirees can join from 55), banks advertise higher deposit rates, the 80D ceiling doubles, 80TTB and a ₹1 lakh TDS threshold on deposit interest apply, and NPS reaches its normal exit age.
80
Super senior status
The old regime's basic exemption rises to ₹5 lakh, against ₹3 lakh for other seniors.
| Instrument | What it is | Worth knowing |
|---|---|---|
| Senior Citizens Savings Scheme (SCSS) | A government scheme at post offices and banks, for people 60 and over | The rate is notified by the government each quarter for new accounts, then stays for the full five-year term. Deposit cap ₹30 lakh. Interest is paid out quarterly and is taxable |
| Senior citizen fixed deposits | Ordinary bank FDs with a slightly higher advertised rate for 60-plus customers | The extra rate is the bank's own offer, not a law. DICGC insurance covers ₹5 lakh per depositor per bank, principal and interest together |
| EPS pension | A monthly pension earned through years of EPF membership | Modest by design — the salary in the formula is capped at ₹15,000 a month, and there is a government-set minimum of ₹1,000 a month |
| NPS at 60 | The retirement corpus reaches normal exit | At least 40% of the corpus must buy an annuity, which then pays a monthly income for life; up to 60% can be taken as a tax-free lump sum |
Rates and thresholds, as checked in August 2026
- SCSS interest rate
- 8.2% a year
- 80TTB deduction on deposit interest
- ₹50,000 a year
- TDS threshold on bank interest, 60-plus
- ₹1,00,000 a year
Notified for Q1 FY 2026-27 and unchanged since. The government revisits small-savings rates each quarter; the rate at opening is locked for the term.
Old regime only. It replaces, not adds to, the ₹10,000 80TTA that younger savers get.
Double the general threshold. TDS is not the final tax — the interest is still taxed at slab rate.
Your turn
A parent keeps ₹10 lakh in SCSS at 8.2%. Roughly how much interest arrives per QUARTER, in rupees?
Myth
“A senior FD and SCSS are the same thing with different names.”
Mostly false
Both pay interest to a 60-plus holder, and the resemblance ends there. SCSS is a government scheme: the rate is notified by the Ministry of Finance, locked for the term at opening, the deposit is capped at ₹30 lakh, and the Government of India stands behind it. A senior FD is a commercial product of one bank: the rate is the bank's own, and the protection is DICGC insurance up to ₹5 lakh per depositor per bank. Different backing, different caps, different early-exit rules.
Check yourself
1 / 3
Kabir asks
Your mother opens an SCSS account this quarter. The government revises the rate next quarter. What happens to hers?
Done reading?
Saved in this browser.