SCSS vs POMIS: Best Monthly Income Schemes for Senior Citizens (2026)
For senior citizens in India, choosing a safe investment that provides a steady monthly or regular income is extremely important. In 2026, two of the most trusted government-backed options are the Senior Citizen Savings Scheme (SCSS) and the Post Office Monthly Income Scheme (POMIS).
Both schemes are low-risk and supported by the Government of India, but they serve different income and tax-planning needs. If you also file income tax returns, make sure to check our guide on Form 26AS and AIS to understand how interest income is reported.
What is the Senior Citizen Savings Scheme (SCSS)?
The Senior Citizen Savings Scheme (SCSS) is a government-backed savings scheme exclusively for senior citizens aged 60 years and above (55+ in certain VRS cases).
It offers one of the highest interest rates among small savings schemes and provides quarterly interest payouts, making it suitable for retirees who want regular income with tax benefits.
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office Monthly Income Scheme (POMIS) is a low-risk savings option that provides a fixed monthly payout. It is open to all Indian residents, but is especially popular among retirees who need predictable monthly cash flow.
Unlike SCSS, POMIS does not offer tax deductions, but it is simple and stable.
SCSS vs POMIS: Key Differences (2026)
| Feature | SCSS | POMIS |
|---|---|---|
| Eligibility | Senior citizens (60+) | Any Indian resident |
| Maximum Investment | ₹30 Lakh | ₹9 Lakh (Single) / ₹15 Lakh (Joint) |
| Tenure | 5 Years (Extendable by 3 years) | 5 Years |
| Interest Payout | Quarterly | Monthly |
| Risk Level | Very Low (Government-backed) | Very Low (Government-backed) |
Tax Benefits and Interest Taxation
- Section 80C Benefit: Investments in SCSS qualify for tax deduction up to ₹1.5 lakh under Section 80C. POMIS does not offer this benefit.
- Tax on Interest: Interest earned from both SCSS and POMIS is taxable as per your income tax slab.
- Section 80TTB: Senior citizens can claim a deduction of up to ₹50,000 on total interest income from all sources, including SCSS and POMIS.
Which One Should You Choose?
Choose SCSS if:
You want higher returns, tax benefits under Section 80C, and can invest a
larger lump sum for long-term income security.
Choose POMIS if:
You need fixed monthly income to manage regular household expenses
and prefer predictable cash flow without locking large amounts.
Expert Tip: You don’t have to choose just one. Many retirees use SCSS for long-term savings and tax benefits while relying on POMIS for monthly expenses.
Disclaimer
This article is for informational purposes only. We are not financial advisors. Interest rates and rules are subject to change based on government notifications. Always confirm the latest rates at your bank or Post Office before investing.
