If you’re looking for a safe and high-yield investment, SBI’s PPF Scheme might be just what you need. The State Bank of India (SBI), the country’s largest public sector bank, offers a range of savings schemes. But one particular plan — the SBI Public Provident Fund (PPF) — is winning hearts, especially for long-term wealth creation.
With just an annual deposit of ₹40,000, you could build a corpus of ₹10,84,856 in 15 years, thanks to the power of compounding interest and tax-free returns. Sounds incredible? Let’s break it down and see how it works.
SBI Yojana – ₹40,000 Investment Grows to ₹10,84,856
| Feature | Details |
|---|---|
| Scheme Name | SBI Public Provident Fund (PPF) |
| Annual Investment | ₹40,000 |
| Tenure | 15 years (minimum) |
| Interest Rate (as of 2025) | 7.1% per annum (compounded annually) |
| Maturity Amount | ₹10,84,856 approx. |
| Tax Benefits | Under Section 80C + Tax-Free Returns |
| Risk Level | Low risk – Backed by Government of India |
| Where to Open | SBI PPF Official Portal |
The SBI Yojana that turns ₹40,000 annual investments into ₹10,84,856 is a testament to the power of disciplined saving and compound interest. Backed by the government and offering tax-free guaranteed returns, this scheme is a no-brainer for conservative investors and long-term planners.
If you want a stress-free way to grow your wealth, start your SBI PPF journey today. A few small steps now can lead to a big financial reward down the line.
What Is the SBI PPF Scheme?
The Public Provident Fund (PPF) is a government-backed savings scheme designed to encourage long-term investment. It offers guaranteed returns, making it a preferred choice for risk-averse investors.
The State Bank of India acts as an authorized agent, allowing you to open a PPF account either online or offline. Since it’s supported by the central government, both your principal and interest are completely safe.
Key Features of the SBI PPF Account:
- Minimum deposit: ₹500 per year
- Maximum deposit: ₹1.5 lakh per year
- Lock-in period: 15 years (extendable in blocks of 5 years)
- Interest is compounded annually
- Interest and maturity amount are tax-free
see also: How Much Money Will Customers Get Back If a Bank Collapses?
How Does ₹40,000 Turn Into ₹10,84,856?
Let’s use a practical example to understand how your money grows.
Calculation:
- Annual deposit: ₹40,000
- Interest rate: 7.1% per annum (compounded)
- Tenure: 15 years
Using the standard PPF compound interest formula, after 15 years, your ₹40,000 annual deposits will total ₹6,00,000 in contributions. The remaining ₹4,84,856 will be the interest earned, giving you a maturity value of ₹10,84,856.
Pro Tip: Want to earn even more? Deposit early in the financial year (before April 5th) to get full-year interest.
Why This SBI Scheme Is Winning Hearts
Here’s why this plan has gained popularity among middle-class families, salaried professionals, and retirees:
Assured Returns
Unlike market-linked schemes (like mutual funds), SBI’s PPF offers guaranteed returns. You won’t lose sleep over market volatility.
Triple Tax Exemption (EEE)
PPF is one of the few investment options under the Exempt-Exempt-Exempt category:
- Investment: Deductible under Section 80C (up to ₹1.5 lakh/year)
- Interest: Tax-free
- Maturity: Tax-free
Flexibility & Accessibility
You can invest in lump sum or installments (maximum 12 per year), and it’s easy to open online via SBI’s YONO app or at any branch.
Best for Long-Term Goals
Planning for a child’s education, marriage, or retirement? The 15-year horizon aligns perfectly with major life goals.
How to Open an SBI PPF Account
Whether you’re a beginner or a seasoned investor, opening a PPF account with SBI is a breeze.
Option 1: Via SBI Branch (Offline)
- Visit your nearest SBI branch
- Fill out the PPF account opening form (Form A)
- Submit KYC documents: PAN card, Aadhaar, photo, address proof
- Deposit your first contribution (minimum ₹500)
- Collect the passbook for your PPF account
Option 2: Online via SBI Net Banking or YONO App
- Log in to your SBI NetBanking
- Click on ‘Request’ → ‘New PPF Account’
- Fill out the form and choose your linked savings account
- Verify details and confirm
- A virtual PPF account number is generated
Note: You must be an SBI savings account holder and have net banking enabled to use this option.
Other SBI Schemes to Consider
If you’re exploring more savings options, here are a couple of other SBI deposit schemes:
SBI Annuity Deposit Scheme
- Deposit a lump sum
- Get monthly payouts comprising principal + interest
- Interest is the same as SBI fixed deposit rates
SBI Fixed Deposit (FD)
- Tenure: 7 days to 10 years
- Interest Rate: Up to 7.10% (varies with tenure and amount)
- Tax-saver FD available (with 5-year lock-in)
Who Should Invest in This SBI Yojana?
This PPF-based SBI Yojana is a perfect fit for:
- Parents saving for child’s future
- Retirees looking for safe, long-term returns
- Salaried individuals who want to save tax
- Risk-averse investors avoiding stock market exposure
Pro Insight: Max out your Section 80C limit by combining PPF with other options like ELSS, EPF, or LIC premiums.
see also: PNB FD: Get FD of ₹3 Lakh for So Many Years, You Will Earn ₹69,432 From Interest Only
SBI Yojana FAQs
Q. Is the SBI PPF account safe?
Yes, it’s 100% secure. It’s backed by the Government of India and managed through SBI.
Q. Can I withdraw money before 15 years?
Partial withdrawals are allowed after 7 years. Full withdrawal is only possible at maturity, unless in specific emergencies.
Q. Can NRIs invest in SBI PPF?
No, NRIs are not eligible to open new PPF accounts.
Q. Is the interest rate fixed?
No. The Government revises the interest rate quarterly. As of Q1 2025, it’s 7.1%.
Q. Can I extend my PPF account?
Yes, you can extend in blocks of 5 years after maturity — with or without contributions.
