Is interest rate fixed in SCSS?

Can anybody over 60 years open a Senior Citizen Savings Scheme (SCSS) account? Is the interest same for the full term of five years years and also during the extended three years?
- Meenu Chadha

Senior Citizens' Savings Scheme (SCSS) is meant for Indian citizens who are 60 years or more. However, if you are above 55 years and opted for a voluntary retirement scheme or if you are retired defence personnel, you can open an account if you fulfill certain conditions. SCSS is a five-year deposit scheme and it pays interest on a quarterly basis. An individual, or jointly with another holder, can invest a maximum of ₹15 lakh in SCSS. On maturity after five years, the SCSS account can be extended by another three years. The interest rate remains the same for the first five five years. However, the rate of interest for the extended term of three years will be based on the prevailing interest rate on the date of maturity. Indian government revises the rate of interest on SCSS from time to time.

This article was originally published on December 08, 2015.