SBI PPF Scheme: Talking about savings and investment, PPF (Public Provident Fund) is one of the most popular and safe schemes among Indian investors. In particular, SBI PPF scheme is ideal for those who want to create big capital through small savings. If you deposit Rs 6000 every month, you can get around Rs 19,52,740 on maturity. Let’s understand this scheme in detail.
What is SBI PPF Scheme?
SBI PPF Scheme is a long-term savings scheme backed by the Government of India, in which the investor gets tax-free interest and maturity amount. The money invested in this scheme also gets tax exemption under section 80C. Children above 10 years of age and adults can open this account in their name.
Minimum and maximum investment in SBI PPF
You can invest a minimum of ₹500 and a maximum of ₹1,50,000 every year in SBI PPF Scheme. This amount can be deposited on a monthly, quarterly, half-yearly or yearly basis.
Interest Rate and Calculation in SBI PPF Scheme
The current interest rate is 7.1%, which is updated by the government every quarter. Since it is based on compound interest, the interest you earn on your investment keeps adding to the principal every year, forming a larger amount.
How to Open SBI PPF Account?
Visit your nearest SBI branch, fill the PPF account form, submit the required documents and deposit the initial amount.