At the rates verified in the official sources, a ₹7 lakh investment would generate ₹14,350 gross per quarter in the Senior Citizens’ Savings Scheme (SCSS) at 8.2% a year, compared with an indicative ₹12,337.50 gross per quarter in an SBI senior-citizen fixed deposit at 7.05% a year. That is a difference of ₹2,012.50 per quarter in SCSS’s favor, before tax. The SBI rate is from a schedule effective July 15, 2025, so it is not a guaranteed quote for a deposit opened now.
How much quarterly interest does ₹7 lakh earn in each scheme?
| Scheme | Rate used | Indicative gross interest per quarter | Indicative gross interest per year |
|---|---|---|---|
| SCSS | 8.2% per annum, listed by India Post | ₹14,350 | ₹57,400 |
| SBI senior-citizen FD | 7.05% per annum for the five-to-ten-year retail deposit band, including SBI We-care; schedule effective July 15, 2025 | ₹12,337.50 | ₹49,350 |
The figures are gross and use simple annual-rate arithmetic: ₹7,00,000 × annual rate ÷ 4 for a quarter. On these rates, SCSS produces an indicative ₹2,012.50 more per quarter, or ₹10,050 more per year. The SBI amount is an estimate, not a personalized bank payout quote; actual credits depend on the deposit’s start date, exact term and payout choice.
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What the quarterly payout means in SCSS
India Post lists SCSS at 8.2% per annum, and SBI describes the scheme as having a five-year maturity with interest paid quarterly. On a ₹7 lakh balance, the rate-based quarterly amount is ₹14,350 before tax. Interest left unclaimed does not earn additional interest, according to SBI’s scheme information. The ₹7 lakh principal is below the ₹30 lakh account ceiling stated on SBI’s SCSS page.
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SBI calculates term-deposit interest at quarterly intervals. A calendar-quarter payment can be requested; monthly payout is offered at a discounted rate. Accordingly, dividing the 7.05% annual rate by four gives a useful quarterly comparison, but does not establish the exact credit schedule for an individual deposit.
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How current and certain are these rates?
India Post’s current scheme listing gives SCSS at 8.2%, but scheme rates are subject to government revision. SBI’s retail rate page lists 7.05% for senior citizens in the five-to-ten-year band, including the extra 0.50 percentage-point SBI We-care premium; that schedule is effective July 15, 2025, and the page was last updated July 14, 2025. It is the latest SBI schedule verified here, not confirmation of the rate available for an October 2026 booking. Check both rates when you are ready to invest.
Tax, maturity and access to your money
Tax on interest
Both comparisons above are before tax. SBI states that TDS applies at prevailing rates. TDS is not necessarily the final tax liability: the amount ultimately payable depends on the depositor’s circumstances and applicable tax rules.
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Five-year term and withdrawals
SCSS has a five-year maturity. The SBI rate cited applies to the five-to-ten-year deposit band, so confirm the exact term and maturity date selected when booking. The official information cited here does not establish a detailed, comparable set of current premature-closure rules for both products; check the applicable closure and withdrawal terms before committing funds if you may need the principal early.
How to use this comparison
- Use ₹14,350 and ₹12,337.50 as gross rate-based quarterly estimates, not after-tax income promises.
- Verify SBI’s applicable rate and payout option at booking; its quoted schedule is dated July 2025.
- Check the current SCSS rate and the withdrawal conditions for each product before deciding.
- Compare the after-tax cash flow and how readily you may need access to the principal, not just the headline rate.
Sources: India Post savings schemes; SBI Senior Citizens Savings Scheme; SBI retail domestic term-deposit rates; SBI term deposits; SBI tax and deposit information.
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