SBI PPF: In today’s time, every person wants to save to secure his future. In search of safe investment, many people turn to government schemes, as they are not only safe but also offer attractive interest rates and guaranteed returns. One such reliable and popular scheme is the Public Provident Fund (PPF), which has been made available by the government through banks across the country. Especially by opening a PPF account in State Bank of India (SBI), you can secure your future financially.
Benefits of opening SBI PPF account
If you want to get good returns in the long run while keeping your investment safe, then SBI PPF scheme can be a great option for you. In this scheme, you get the benefit of government guarantee as well as tax exemption on interest.
1. Safe investment for long term
SBI’s PPF scheme is for a period of 15 years, which can be extended in blocks of 5-5 years.
2. Attractive interest rate
Currently, SBI PPF account is paying 7.1% annual interest, which is determined by the government. This interest rate is revised every quarter.
3. Tax exemption benefits
Investments made in PPF are tax exempted under section 80C and the interest received on it is also completely tax-free.
4. Minimum and maximum investment limit
In this scheme, you can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh annually. Investments can be paid on a monthly, quarterly, half-yearly or yearly basis.
5. Loan and partial withdrawal facility
Loan facility: You can take a loan on the amount deposited in the PPF account from the third year to the sixth year.
Partial withdrawal: You can make partial withdrawal from the seventh year, which makes the funds available at the time of your need.
How to open a PPF account in SBI?
The process of opening a PPF account in SBI is very easy. You can open it both offline and online.
Offline Process:
Go to your nearest SBI branch.
Fill the PPF account opening form.
Submit the required documents (Aadhaar card, PAN card, passport size photo etc.).
Make an initial deposit of minimum Rs 500.
Once the account is opened, you will be provided with a passbook.
Online Process (via SBI YONO app):
Log in to SBI YONO app or net banking.
Go to PPF account section.
Fill in the required information and upload KYC documents.
After digital signature, the account will be opened and you will get a digital passbook.
How much return will you get on an annual investment of Rs 40,000?
If you invest Rs 40,000 in a PPF account every year, you will get great returns after 15 years. Let’s calculate:
Total investment: Rs 6,00,000
Interest rate: 7.1% (variable as per government rate)
Total interest earned: Rs 4,84,856
Total amount on maturity: Rs 10,84,856
Conclusion
SBI PPF account is a government savings scheme that gives safe and high returns for the long term. This scheme is beneficial for small investors as well as high-income investors. If you want to save tax without risk and get good returns, then PPF account can be a great option for you.
If you also want to strengthen your future financially, then open a PPF account in SBI without delay and take advantage of this great scheme.
