In today’s time, everyone wants their money to be safe and also grow. In such a situation, what can be more reliable than State Bank of India (SBI)? It is a government bank and its schemes are also run by the government, so there is no need to worry! Today we will talk about one such great scheme of SBI – Public Provident Fund (PPF)!
What is SBI PPF Scheme?
SBI PPF Scheme is a government savings scheme. In this, by saving a little every month, when the scheme is completed, you can get a big amount. This scheme is very good for those who want to invest without risk for a long time.
Who can open a PPF account?
If you want to invest money in SBI PPF scheme, then you have to go to any branch of SBI and open a PPF account. For this, your age should be more than 18 years. This scheme is for every Indian citizen who wants to get good returns by combining his small savings.
How to open a PPF account?
To invest in SBI PPF scheme, you first have to open a PPF account in SBI Bank.
After opening the account, you have to deposit a fixed amount every month or year. You have to do this for 15 years. You can pay the premium every month or once a year, it is your choice.
How much can you invest?
You can invest in SBI PPF scheme for at least 15 years. If you want, you can extend this period twice for 5-5 years. That means you can also invest for 25 years!
And do you know the best thing? You can start investing with just Rs 500! And if you want to do more, you can invest up to Rs 1.50 lakh in a year.
Tax benefits too!
If you invest up to Rs 1.50 lakh annually in SBI Public Provident Fund scheme, then you also get tax exemption under Section 80C of Income Tax. And not only this, the interest earned in this scheme is also not taxable! For now, this scheme is giving 7.1% annual interest.
Benefits of SBI PPF Scheme
This scheme is only for people living in India.
To open a PPF account, you must be above 18 years of age.
A person can open only one PPF account.
Currently, this scheme is giving 7.1% interest, which is added every year.
How much will you get by depositing Rs 5500 every month?
Suppose, if you deposit Rs 5500 every month for 15 years in SBI PPF scheme, then in a year you will have deposited Rs 66,000. In 15 years, this amount will become Rs 9,90,000. And at 7.1% interest rate, you will get an interest of around Rs 8,00,012 in 15 years! That is, when the scheme is completed, you will get a total of Rs 17,90,012.
