The Government of India has launched a new savings scheme for senior citizens. It gives a fixed 11.68% interest every year for life. This plan is made for people above 60 years of age to secure their retirement income.
In today’s time, inflation is rising and pensions are shrinking. This government-backed scheme gives safe and regular income without stock market risks.
What Is the 11.68% Senior Citizens Interest Scheme?
The Senior Citizens Savings Initiative – 2025 is a fixed-income plan. It pays 11.68% return every year. It is one of the highest paying retirement plans in India.
Key Features of the Scheme
| Feature | Details |
| Interest Rate | 11.68% per year (fixed) |
| Eligibility | Age 60+ or 55+ with VRS |
| Interest Payout | Monthly, Quarterly, Annually |
| Lock-in Period | 5 years (can renew) |
| Maximum Investment | ₹30 lakh per person |
| Security | Fully backed by Government of India |
| Tax Benefits | Section 80C up to ₹1.5 lakh |
Why This Scheme Is Important in 2025
This scheme gives higher income than normal plans. Most plans give 6%–8%, but this pays 11.68%.
It helps fight inflation and gives stable income. Since the money is safe with the government, it is risk-free. Income can be taken monthly, quarterly, or yearly.
Who Can Apply
- Must be an Indian citizen
- Age 60+ (or 55+ with voluntary retirement proof)
- Must have PAN card and Aadhaar card
- Active bank account needed
How to Apply
| Step | What to Do |
| 1 | Visit a bank or post office |
| 2 | Fill the application form |
| 3 | Submit PAN, Aadhaar, proof of age |
| 4 | Select payout option – monthly, quarterly, or yearly |
| 5 | Deposit funds (₹1,000 minimum, ₹30 lakh maximum) |
How Much Can You Earn?
| Investment Amount (₹) | Monthly Income (₹) | Quarterly Income (₹) | Annual Income (₹) |
| 1,00,000 | 973 | 2,920 | 11,680 |
| 5,00,000 | 4,865 | 14,600 | 58,400 |
| 10,00,000 | 9,730 | 29,200 | 1,16,800 |
| 20,00,000 | 19,460 | 58,400 | 2,33,600 |
| 30,00,000 | 29,190 | 87,600 | 3,50,400 |
Note: Figures are approximate and depend on payout choice.
Comparison With Other Retirement Schemes
| Scheme | Interest Rate | Lock-in Period | Government Backed | Tax Benefit |
| 11.68% Senior Citizens Scheme | 11.68% | 5 years | Yes | Yes |
| Senior Citizens Savings Scheme | 8.2% | 5 years | Yes | Yes |
| Post Office MIS | 7.4% | 5 years | Yes | No |
| Senior Citizen FDs | 7.0%–7.75% | 1–10 years | Partially | Yes |
| PM Vaya Vandana Yojana | 7.4% | 10 years | Yes | No |
This shows that the new scheme gives the best return in 2025.
Tax Information
- Interest earned is taxable as per income slab.
- TDS applies if yearly interest is above ₹50,000.
- Section 80C benefits up to ₹1.5 lakh are available.
- Form 15H can be submitted to avoid TDS if eligible.
Pros and Cons
Advantages
- Highest fixed return for retirees
- Guaranteed safe income for life
- Fully backed by the government
- Multiple payout choices
- No stock market risk
Limitations
- Interest is taxable
- Early exit may reduce benefits
- ₹30 lakh investment cap
- Only for Indian residents
Who Should Invest
This scheme is best for:
- Retired people without other pension plans
- Elderly couples who want stable income
- Investors looking for safe long-term returns
It may not be suitable for:
- High-income earners who worry about tax
- People who need quick access to funds
Final Thoughts
The 11.68% Senior Citizens Interest Scheme 2025 is one of the best retirement plans in India. It gives very high returns, is government-backed, and ensures safe income. For retirees who want peace of mind and regular income, this is a strong option. But always check with a financial advisor before investing.
FAQs
How much interest does the scheme give?
11.68% per year.
Who can apply?
Indian citizens aged 60+, or 55+ with VRS.
What is the maximum investment?
₹30 lakh per person.
₹30 lakh per person.
How long is the lock-in period?
Is the money safe?
Yes, it is government-backed.