SCSS, or Senior Citizen Savings Scheme, is a government-backed savings scheme designed specifically for individuals above 60 years of age (or 55, for those who've taken voluntary retirement), offering one of the higher interest rates among small savings schemes, reviewed quarterly by the government. You can invest a lumpsum up to a specified maximum limit, and the interest is paid out quarterly rather than compounded, making it a useful source of regular income.
The scheme has a 5-year tenure, extendable once by 3 more years, and the investment qualifies for a Section 80C tax deduction, though the quarterly interest received is fully taxable. Because it's backed by the government and offers dependable quarterly payouts, SCSS is widely used by retirees as a stable, low-risk component of their post-retirement income, often alongside other instruments like PPF, FDs, and annuities.