When it comes to safe and long-term savings, few instruments can compete with the SBI Public Provident Fund (PPF). With just ₹50,000 invested annually, you could build a corpus of over ₹13.56 lakhs in 15 years — all while enjoying tax-free returns. This plan is ideal for individuals who prefer consistent, government-backed growth without stock market risks.
How ₹50,000 Grows into ₹13.56 Lakhs – The Magic of Compounding
By investing ₹50,000 every year at the current PPF interest rate of 7.1%, your money compounds year after year. This means your earnings generate more earnings, leading to exponential growth. Staying consistent over 15 years leads to a maturity amount that nearly doubles your total investment.
SBI PPF Key Investment Highlights
| Annual Investment | Total Investment (15 Years) | Estimated Maturity |
|---|---|---|
| ₹50,000 | ₹7.5 Lakhs | ₹13.56 Lakhs |
| ₹1,00,000 | ₹15 Lakhs | ₹27.13 Lakhs |
| ₹1,50,000 | ₹22.5 Lakhs | ₹40.70 Lakhs |
Why SBI Is the Best Choice for Your PPF Account
Choosing SBI for your PPF account brings unmatched convenience and trust. As the largest bank in India, SBI offers seamless digital services, wide branch access, and easy account tracking via internet banking. You can also manage your deposits, view statements, and even automate payments with ease.
Tax Benefits of SBI PPF
The SBI PPF plan falls under the EEE (Exempt-Exempt-Exempt) category:
- Investment qualifies for Section 80C tax deduction
- Interest earned is completely tax-free
- The maturity amount is 100% exempt from tax
This makes it a rare combination of guaranteed growth and full tax exemption.
Withdrawals, Loans & Flexibility: Liquidity Within Lock-In
Unlike most long-term schemes, SBI PPF allows partial withdrawals after the 7th year and loan options from the 3rd year onward. This means you can access your money during emergencies without disturbing the core of your investment.
Opening an SBI PPF Account is Easier Than Ever
You can open your PPF account online in minutes through SBI net banking. Just go to the ‘e-Services’ tab, select ‘New PPF Account,’ enter your details, and authenticate. That’s it—your account is live and linked to your savings account!
FAQs
Yes, you can invest any amount between ₹500 and ₹1.5 lakh annually.
No, it is revised quarterly by the government, but remains attractive and stable.
No, PPF accounts are only available to resident Indians.