If you’re looking for a safe, government-backed investment that builds wealth over time and gives you tax benefits, SBI’s Public Provident Fund (PPF) scheme should be on your radar. It’s one of the most trusted long-term savings options in India. And here’s the exciting part: by depositing just ₹90,000 annually, you can grow your savings to ₹24,40,926 over time.
SBI’s New PPF Scheme
| Feature | Details |
|---|---|
| Scheme Name | SBI Public Provident Fund (PPF) |
| Annual Investment | ₹90,000 |
| Maturity Period | 15 years (extendable in 5-year blocks) |
| Interest Rate (April 2025) | 7.1% p.a. (compounded annually) |
| Maturity Amount | ₹24,40,926 (approx.) |
| Tax Benefits | Under Section 80C, tax-free interest and maturity |
| Minimum Deposit | ₹500/year |
| Maximum Deposit | ₹1.5 lakh/year |
If you’re looking for a secure, long-term, and tax-efficient investment, SBI’s PPF scheme is a top contender. By simply saving ₹90,000 annually, you can build a corpus of over ₹24 lakh in 20 years—completely risk-free and tax-free. It’s a smart move for professionals, parents planning for children’s future, or anyone aiming to build retirement wealth the safe way.
What Is the SBI PPF Scheme?
The Public Provident Fund (PPF) is a central government-backed savings scheme offered through banks like State Bank of India (SBI). It encourages long-term savings with guaranteed returns, making it perfect for retirement planning or creating a tax-free corpus.
You can open an SBI PPF account online or at your nearest branch. The scheme is open to Indian residents and allows you to invest from ₹500 to ₹1.5 lakh per year. The current interest rate is 7.1% per annum (as of Q1 FY 2025-26) and is compounded annually.
see also: How Much Interest Will You Get on Deposits of ₹10,000 to ₹50,000?
How Can ₹90,000 Per Year Turn Into ₹24,40,926?
Now, let’s get to the big number everyone wants to know about. If you invest ₹90,000 at the beginning of each financial year for 15 years, and the interest rate remains at 7.1%, here’s how your money compounds:
Example PPF Growth Table:
| Year | Annual Deposit | Total Deposit | Interest Earned | Closing Balance |
|---|---|---|---|---|
| 1 | ₹90,000 | ₹90,000 | ₹6,390 | ₹96,390 |
| 5 | ₹4,50,000 | ₹4,50,000 | ₹63,940 | ₹5,13,940 |
| 10 | ₹9,00,000 | ₹9,00,000 | ₹1,60,529 | ₹11,10,529 |
| 15 | ₹13,50,000 | ₹13,50,000 | ₹2,89,553 | ₹16,39,553 |
| With 5-year extension | +₹4,50,000 | ₹18,00,000 | +₹6,40,926 | ₹24,40,926 |
So, with a consistent investment and a 5-year extension, your money can potentially grow to ₹24.4 lakh. This is completely tax-free!
Why Choose SBI’s PPF Scheme?
1. Safe and Government-Backed
Your investment is backed by the Government of India, so there’s zero market risk.
2. Attractive Interest Rate
The current 7.1% rate is better than most bank fixed deposits.
3. Triple Tax Benefit (EEE)
- Exempt on Investment: Up to ₹1.5 lakh under Section 80C.
- Exempt on Interest: No tax on annual interest earned.
- Exempt on Maturity: Full amount is tax-free.
4. Flexible Investment
You can invest in 12 monthly installments or make a lump-sum deposit.
5. Loan and Partial Withdrawal Options
True Balance Loan Apply Online: True Balance App से मिलेगा ₹10000 से लेकर के 1 लाख तक का पर्सनल लोन
- Loan available between Year 3 and Year 6.
- Partial withdrawals allowed from Year 7 onwards.
How to Open an SBI PPF Account
Step-by-Step Guide:
Option 1: Online (via SBI NetBanking)
- Log into your SBI NetBanking account.
- Go to “Request & Enquiries > New PPF Account”.
- Fill in your details and nominee.
- Submit and deposit the amount.
- Account gets activated instantly.
Option 2: Offline at Branch
- Visit your nearest SBI branch.
- Fill out Form A (PPF account opening).
- Submit KYC documents (PAN, Aadhaar, address proof).
- Deposit your initial amount (min ₹500).
- Get your passbook and account details.
Practical Tips to Maximize Your Returns
- Deposit Before 5th April each year to earn full-year interest.
- Always invest the full ₹1.5 lakh if possible to maximize tax-saving.
- Use the 5-year extension option after maturity to keep earning compound interest.
- Avoid withdrawing early unless absolutely needed.
see also: Now Double the Profit on FD in the Name of the Elderly
SBI’s New PPF Scheme FAQs
Q1. Is it safe to invest in SBI PPF?
Yes, PPF is 100% safe and backed by the Government of India. SBI is just the facilitator.
Q2. Can I invest more than ₹1.5 lakh per year?
No. The maximum allowed is ₹1.5 lakh/year. Any extra amount won’t earn interest or tax benefits.
Q3. Is the interest rate fixed?
No. The interest rate is revised every quarter by the Ministry of Finance. However, it usually remains between 7% and 8%.
Q4. Can I open a joint PPF account?
No. PPF accounts can only be opened in individual names. However, you can open accounts for minors.
Q5. What happens after 15 years?
You can withdraw the full amount, extend the account in 5-year blocks with or without additional contributions, or continue earning interest.
