If you want to save money and get guaranteed returns with tax benefits, the Public Provident Fund (PPF) scheme by the State Bank of India (SBI) is one of the best options. It is backed by the government, offers tax-free returns, and helps you build a good amount over time with small monthly investments.
Let’s understand how investing just ₹2,500 per month in SBI PPF can help you earn ₹8.13 lakh at maturity.
What is the SBI PPF Scheme?
The SBI PPF scheme is a savings scheme offered by SBI under the Public Provident Fund Act. It has a lock-in period of 15 years and is safe because it is backed by the Government of India.
- Interest Rate: Currently 7.1% per annum (compounded yearly)
- Minimum Deposit: ₹500 per year
- Maximum Deposit: ₹1.5 lakh per year
- Duration: 15 years (can be extended)
- Risk Level: No risk, government-backed
- Tax Benefit: Section 80C deduction + tax-free interest and maturity
How You Get ₹8.13 Lakh from ₹2,500/Month?
If you invest ₹2,500 per month (₹30,000 per year) for 15 years, here’s how your money grows:
| Particulars | Details |
| Monthly Investment | ₹2,500 |
| Yearly Investment | ₹30,000 |
| Investment Period | 15 years |
| Total Invested | ₹4,50,000 |
| Interest Earned | ₹3,63,642 |
| Maturity Amount | ₹8,13,642 |
| Interest Rate | 7.1% p.a. |
So, by just saving ₹83 per day, you can build a tax-free wealth of over ₹8 lakh in 15 years.
How to Open SBI PPF Account?
You can open a PPF account with SBI in two ways:
1. Online through SBI Net Banking:
- Log in to SBI net banking
- Go to ‘Request & Enquiries’ > ‘New PPF Account’
- Fill in your details
- Submit and print the form
- Visit your branch with ID proof to complete the process
2. Offline at SBI Branch:
- Visit your nearest SBI branch
- Fill out the PPF form
- Submit KYC documents (Aadhaar, PAN, passport-size photo)
- Deposit your first amount (₹500 minimum)
PPF Benefits in Simple Words
1. Safe Investment:
Since it is a government scheme, there’s no risk of loss.
2. Tax-Free Returns:
You get income tax exemption under Section 80C, and even the interest and maturity amount is tax-free.
3. Fixed Interest:
Even if market conditions change, PPF gives stable returns (currently 7.1%).
4. Flexible Investment:
You can invest as low as ₹500 and as high as ₹1.5 lakh in a year, either in one go or in 12 monthly installments.
5. Loan & Withdrawal Facility:
You can take a loan against your PPF from the 3rd to 6th year. Partial withdrawals are allowed from the 7th year.
6. Long-Term Savings Habit:
Because of the 15-year lock-in, it helps in long-term wealth creation and financial discipline.
Who Should Invest in SBI PPF Scheme?
- Salaried persons who want tax savings and secure returns
- Housewives or self-employed people looking for long-term savings
- Parents planning for their child’s higher education or marriage
- Anyone who wants to build a retirement fund slowly and safely
Can You Extend the PPF Account After 15 Years?
Yes, after 15 years, you can extend the account in blocks of 5 years. You can either:
- Continue with contribution, and keep getting interest
- Stop contribution, and still earn interest on the existing amount
Important Things to Remember
- You must deposit at least ₹500 each year or your account will become inactive.
- Maximum deposit allowed is ₹1.5 lakh per year.
- PPF interest is calculated monthly but added annually.
- Nomination facility is available.
- You can open a PPF account for a minor too.
Final Thoughts
The SBI PPF scheme is a perfect option for people who want to invest safely and earn decent returns over time. Just by investing ₹2,500 per month, you can collect over ₹8 lakh in 15 years — without any market risk and with full tax benefits.