SBI PPF Scheme : These days, everyone is looking for investment options that can secure their future. In this regard, the Public Provident Fund (PPF) scheme by the State Bank of India (SBI) has proven to be a great option. Not only is your money safe in this scheme, but the interest you get is also quite attractive. Currently, SBI offers an interest rate of 7.1% on its PPF scheme. Let’s take a closer look at the key features and benefits of this scheme.
How Much Should You Invest?
Investing in an SBI PPF account is very easy. You can start investing with as little as ₹500, and you can invest up to ₹1.5 lakh per year. This investment is made for 15 years, after which you can withdraw your deposit along with interest. If you want to continue enjoying the benefits of this scheme even after 15 years, you can extend it in blocks of 5 years.
Small Investments Lead to Big Returns
The SBI PPF Scheme offers compound interest, which means your investment grows over time, and you get better returns. Here’s a table showing how much interest you would earn in one year and how much you could get after 15 years with different monthly investments:
| Monthly Investment (₹) | Interest in 1 Year (₹) | Return After 15 Years (₹) |
|---|---|---|
| ₹500 | ₹426 | ₹1,62,728 |
| ₹1,200 | ₹1,022.4 | ₹3,90,548 |
| ₹5,000 | ₹4,260 | ₹ 16,27,284 |
| ₹10,000 | ₹8,520 | ₹ 32,54,567 |
This scheme offers investors a fixed and secure return that is not affected by market fluctuations.
How to Open an Account (Online and Offline)
SBI makes it easy for customers to open a PPF account with various options:
- Offline Process: If you have an SBI branch nearby, you can go there and open a PPF account.
-
Online Process: If there’s no branch near you, you can open an account from the comfort of your home using the SBI YONO app.
The process is very simple and convenient, saving you time and offering a better experience.
Why Choose SBI PPF Scheme?
SBI’s PPF scheme is government-backed, which makes it completely safe for your money. Additionally, the scheme offers tax benefits under Section 80C of the Income Tax Act. The investment period is 15 years, making it a great option for meeting major future needs like children’s education, marriage, or retirement.
Important Things to Know Before Investing
- You must be at least 18 years old to invest in the PPF scheme.
- You cannot invest more than ₹1.5 lakh in a financial year.
- After the maturity period of 15 years, you can extend the scheme for another 5 years if you wish.
Conclusion
The SBI PPF Scheme is an excellent investment option that not only provides good interest rates but also keeps your money completely safe. It offers a flexible and secure way to save for the future, ensuring your financial security in the long run.
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