SBI PPF Scheme: Invest ₹1000 & Get ₹3.25 Lakh – Investing in a secure, long-term savings plan is crucial for financial stability. One of the best options in India is the State Bank of India (SBI) Public Provident Fund (PPF) Scheme. This government-backed savings plan offers guaranteed returns, tax benefits, and long-term wealth accumulation.
If you invest ₹1000 per month in the SBI PPF scheme, you can potentially grow your investment to ₹3.25 lakh over 15 years. But how does it work? Let’s break it down step by step.
SBI PPF Scheme
| Feature | Details |
|---|---|
| Minimum Investment | ₹500 per year |
| Maximum Investment | ₹1.5 lakh per year |
| Interest Rate (Current) | 7.1% (Compounded Annually) |
| Tenure | 15 years (Extendable in 5-year blocks) |
| Maturity Amount (For ₹1000/month investment) | Approx. ₹3.25 lakh |
| Tax Benefits | Exempt under Section 80C (Investments, Interest, and Maturity Amount) |
| Partial Withdrawals | Allowed after 7 years |
| Loan Facility | Available from the 3rd to 6th year |
| Premature Closure | Allowed in exceptional cases (death, medical emergency, higher education) |
| Nomination Facility | Available |
| Account Accessibility | Online via SBI Net Banking & Mobile App |
| Official Website | SBI PPF Official Website |
The SBI PPF scheme is one of the best long-term investment options in India. It provides guaranteed returns, tax benefits, and wealth creation through compound interest. Investing ₹1000 per month can yield ₹3.25 lakh over 15 years, making it an excellent choice for retirement planning, children’s education, and financial security.
What is the SBI PPF Scheme?
The SBI Public Provident Fund (PPF) Scheme is a government-backed savings scheme designed to encourage long-term savings. It offers a fixed interest rate (currently 7.1% per annum) and comes with tax-free returns under the Exempt-Exempt-Exempt (EEE) tax regime.
This means:
- Investments in PPF qualify for tax deduction under Section 80C.
- Interest earned is tax-free.
- Maturity amount is also tax-free.
Who Can Open an SBI PPF Account?
- Indian residents (Individuals only; HUFs & NRIs are not eligible).
- Parents/Guardians can open accounts for minors.
Benefits of PPF Over Other Investment Options
- Higher Interest Rates Compared to FDs: The 7.1% interest rate is higher than fixed deposits.
- No Market Risks: Unlike stocks or mutual funds, PPF is risk-free.
- Government Security: Since it’s government-backed, there’s no risk of default.
- Compounding Advantage: Interest is compounded annually, helping long-term wealth growth.
How to Invest ₹1000 Monthly & Get ₹3.25 Lakh?
The power of compound interest makes the PPF scheme an excellent choice for wealth accumulation. Here’s a simple calculation showing how investing just ₹1000 per month can grow into ₹3.25 lakh over 15 years.
PPF Investment Calculation (7.1% Interest Rate)
| Year | Total Deposited (₹) | Interest Earned (₹) | Total Balance (₹) |
|---|---|---|---|
| 1 | 12,000 | 426 | 12,426 |
| 5 | 60,000 | 12,700 | 72,700 |
| 10 | 1,20,000 | 58,650 | 1,78,650 |
| 15 | 1,80,000 | 1,45,000 | 3,25,000 |
How to Open an SBI PPF Account?
Online Method (via SBI Net Banking & YONO App)
- Log in to SBI Internet Banking or YONO SBI App.
- Navigate to ‘Request & Enquiries’ > ‘New PPF Account’.
- Fill out the required details and submit the application.
- Visit your branch with the necessary documents for verification.
Offline Method (At SBI Branch)
- Visit your nearest SBI Branch.
- Fill out PPF Account Opening Form (Form A).
- Submit KYC documents (Aadhaar, PAN, Passport-size Photo).
- Deposit an initial amount (minimum ₹500).
- Your PPF account number will be provided after processing.
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FAQs about SBI PPF Scheme: Invest ₹1000 & Get ₹3.25 Lakh?
1. Can I withdraw my money before 15 years?
Yes, partial withdrawals are allowed from the 7th financial year.
2. Can NRIs open an SBI PPF account?
No, NRIs cannot open a new PPF account. However, if they had an account before becoming an NRI, they can continue contributing till maturity.
3. What happens if I miss a PPF deposit?
If you fail to deposit the minimum ₹500 per year, your account will be deactivated. To reactivate, you must pay a penalty of ₹50 per missed year.
4. Can I extend my PPF account after 15 years?
Yes! You can extend your PPF in 5-year blocks with or without further contributions.
5. What happens to my PPF account if I pass away?
Your nominee can claim the entire balance, including interest, after submitting the required documents.
6. What happens if I invest more than ₹1.5 lakh in a year?
Any amount above ₹1.5 lakh will not earn interest and will be refunded without interest.
