Investing in a Public Provident Fund (PPF) is one of the safest and most rewarding ways to grow your savings over time. If you deposit Rs 5,000 per month in the SBI PPF Scheme, you can build a corpus of Rs 16,27,284 in 15 years. The SBI PPF scheme offers tax benefits, guaranteed returns, and compounding growth, making it a must-have in your financial portfolio.
To help you understand the potential of this investment, let’s break down the details of the SBI PPF scheme, including calculations, benefits, and how you can maximize your savings.
SBI PPF Scheme Calculator 2025
| Feature | Details |
|---|---|
| Investment Amount | Rs 5,000 per month (Rs 60,000 per year) |
| Total Investment | Rs 9,00,000 over 15 years |
| Interest Rate | 7.1% (compounded annually) |
| Maturity Amount | Rs 16,27,284 (including Rs 7,27,284 in interest) |
| Tax Benefits | Exempt-Exempt-Exempt (EEE) under Section 80C |
| Minimum Tenure | 15 years (extendable in 5-year blocks) |
| Partial Withdrawals | Allowed from the 7th year onwards |
| Loan Facility | Available between 3rd and 6th year |
The SBI PPF Scheme is an excellent long-term investment option that ensures secure, tax-free returns with the power of compounding. By saving Rs 5,000 per month, you can accumulate Rs 16,27,284 in 15 years, making it ideal for retirement, education, or future financial goals. Given its low risk, tax benefits, and guaranteed returns, it is one of the best investment choices in 2025.
What is SBI PPF Scheme?
The SBI Public Provident Fund (PPF) Scheme is a long-term investment plan backed by the Government of India. It offers guaranteed returns with tax-free interest and is an excellent way to build wealth for future needs like retirement, education, or major life events.
Key Features of SBI PPF
- Safe & Secure: Since it is a government-backed scheme, there is no risk of loss.
- Fixed Interest Rate: Currently at 7.1% per annum, revised quarterly by the government.
- Tax Benefits: Investments are eligible for deductions under Section 80C, and the interest earned is also tax-free.
- Flexible Investment Amount: Minimum Rs 500 per year, maximum Rs 1.5 lakh.
- Long-Term Growth: With a 15-year lock-in period, the power of compounding helps your money grow significantly.
see also: Post Office KVP Scheme Double Your Money in 115 Months
SBI PPF Scheme 2025 Calculator: How Rs 5,000 Monthly Grows to Rs 16,27,284
If you invest Rs 5,000 per month in the SBI PPF scheme for 15 years, here’s how your money will grow:
| Year | Annual Deposit (Rs) | Total Investment (Rs) | Interest Earned (Rs) | Total Balance (Rs) |
|---|---|---|---|---|
| 1 | 60,000 | 60,000 | 4,260 | 64,260 |
| 5 | 60,000 | 3,00,000 | 58,952 | 3,58,952 |
| 10 | 60,000 | 6,00,000 | 2,16,398 | 8,16,398 |
| 15 | 60,000 | 9,00,000 | 7,27,284 | 16,27,284 |
Benefits of Investing in SBI PPF
1. Triple Tax Benefits (EEE Category)
The SBI PPF scheme falls under the Exempt-Exempt-Exempt (EEE) tax category, which means:
- The investment (up to Rs 1.5 lakh per year) is tax-deductible under Section 80C.
- The interest earned is tax-free.
- The maturity amount is tax-free.
2. Compounding Interest Power
Since PPF interest is compounded annually, your savings grow exponentially over time. This makes it one of the most lucrative fixed-income investment options.
3. Flexibility in Investment
You can invest any amount between Rs 500 and Rs 1.5 lakh per year, either monthly or lump sum.
4. Partial Withdrawals & Loan Facility
- Partial withdrawals are allowed after the 7th year.
- Loan facility is available between the 3rd and 6th year, making it a liquid investment despite its long tenure.
How to Open an SBI PPF Account?
Opening an SBI PPF account is simple. Follow these steps:
1. Online Method (Via SBI Net Banking)
- Log in to your SBI Internet Banking account.
- Navigate to ‘PPF Account’ under the investment section.
- Fill in the required details and submit KYC documents.
- Transfer your first deposit online via net banking.
- Once verified, your PPF account will be activated.
2. Offline Method (Visit SBI Branch)
- Visit the nearest SBI branch and ask for a PPF Account Opening Form.
- Provide ID proof, address proof, and passport-sized photographs.
- Deposit the initial amount (Rs 500 minimum).
- Your PPF account will be created, and you will receive a passbook.
see also: Fixed Deposit vs. Recurring Deposit?
SBI PPF Scheme Calculator 2025 FAQs
1. What is the current SBI PPF interest rate?
The current SBI PPF interest rate is 7.1% per annum, revised quarterly by the Government of India.
2. Can I withdraw money from my SBI PPF before 15 years?
Yes, partial withdrawals are allowed from the 7th year onwards. Full withdrawal is allowed after 15 years.
3. What happens if I don’t deposit money in my PPF account?
Your account becomes inactive, but you can reactivate it by paying a Rs 50 penalty per year along with the minimum required deposit.
4. Can I extend my PPF account beyond 15 years?
Yes, you can extend it in 5-year blocks, either with or without further contributions.
5. How can I check my SBI PPF account balance?
You can check your SBI PPF balance via SBI Internet Banking, YONO App, or by updating your passbook at the branch.
