The State Bank of India (SBI) offers the Public Provident Fund (PPF) as a long-term savings option backed by the government. It is widely considered one of the safest investment choices in India because it guarantees returns while offering tax benefits. For salaried professionals, self-employed individuals, and even homemakers, PPF provides a disciplined way to save for the future.
Key Features of the Scheme
The PPF account has a lock-in period of 15 years, which can be further extended in blocks of five years. Investors can contribute as little as ₹500 annually, while the maximum limit is ₹1.5 lakh per year. The government revises the interest rate every quarter, and currently, it stands at 7.1% per annum. The interest earned is compounded annually and credited at the end of each financial year.
How ₹35,000 Becomes ₹4.24 Lakh
If you deposit ₹35,000 each year in the SBI PPF account, the consistent contribution combined with the power of compounding helps the amount grow steadily. Over a span of 15 years, your investment will mature to around ₹4.24 lakh at the current interest rate of 7.1%. This demonstrates how even a modest yearly saving can multiply into a significant corpus without market risks.
Tax Benefits and Safety Assurance
Another major advantage of investing in PPF is the tax exemption under Section 80C of the Income Tax Act. Contributions of up to ₹1.5 lakh per year qualify for deduction. Moreover, the returns and maturity amount are entirely tax-free, falling under the Exempt-Exempt-Exempt (EEE) category. Since PPF is supported by the Government of India, your savings are fully protected regardless of market fluctuations.
Best for Long-Term Financial Goals
The SBI PPF scheme is ideal for those who want to create a retirement fund, save for their children’s education, or simply secure their financial future. The 15-year lock-in encourages consistent saving, while compounding ensures steady growth. For conservative investors who value stability, it remains one of the best long-term investment options.
Final Thoughts
The SBI PPF scheme proves that small, regular savings can create big results. A simple deposit of ₹35,000 every year can grow into more than ₹4 lakh over 15 years. With the dual benefit of safety and tax savings, it continues to be a preferred choice for millions of Indian households.