Public Provident Fund (PPF) is a trusted savings scheme and is ideal for long-term investors in India. It is very popular because it offers tax benefits along with the safety of your money. The State Bank of India (SBI), the largest public sector bank, also offers PPF accounts. This makes it easier for people to invest and secure their financial future.
Interest Rate and Investment Details
The PPF scheme currently offers an interest rate of 7.1% per annum. To open a PPF account, a minimum deposit of ₹500 is required. You can deposit a maximum of ₹1.5 lakh per year. The tenure of a PPF account is 15 years, but it can be extended for an additional 5 years, and this extension can be renewed every 5 years.
Tax Benefits
One of the major benefits of investing in a PPF account is the tax deduction available under Section 80C of the Income Tax Act. This makes PPF a popular choice for both salaried individuals and the self-employed.
Returns on PPF Investment
How much return will you get on ₹25,000 per year?
- Total deposit over 15 years: ₹3,75,000
- Fund at maturity: ₹6,78,035
- Interest earned: ₹3,03,035
How much return will you get on ₹50,000 per year?
- Total deposit over 15 years: ₹7,50,000
- Fund at maturity: ₹10,06,070
- Interest earned: ₹3,03,035
How much return will you get on ₹1,00,000 per year?
- Total deposit over 15 years: ₹15,00,000
- Fund at maturity: ₹27,12,139
- Interest earned: ₹12,12,139
How much return will you get on ₹1,50,000 per year?
- Total deposit over 15 years: ₹22,50,000
- Fund at maturity: ₹40,68,209
- Interest earned: ₹18,18,209
How to Make ₹1 Crore from PPF?
If you want to accumulate ₹1 crore, you can achieve it by investing ₹1.5 lakh annually for 25 years (15 years + 5 years + 5 years).
- Total deposit in 25 years: ₹37,50,000
- Funds at maturity: ₹1,03,08,015
- Interest earned: ₹65,58,015
How do you open a PPF account in SBI?
Online Method:
Log in to SBI Internet Banking.
Go to the Requests and Enquiries section and select New PPF Account.
Fill in the details and deposit money through net banking.
Offline Method (For Non-SBI Customers):
- Visit your nearest SBI branch.
- Fill in the form to open a PPF account.
- Submit your ID proof, address proof, and passport-size photograph.
- Deposit at least ₹500 and collect your passbook or digital statement.
Remember, SBI’s PPF account is a great way to save for the future while enjoying tax benefits. Whether you invest small or large sums, it provides a safe, long-term option for steady growth.
Disclaimer:
This article is for informational purposes only. Returns are based on current interest rates and may change. Please consult a financial advisor before making investment decisions.