Public Provident Fund: Planning for retirement, Looking for a long-term investment option to secure your future, Then The State Bank of India (SBI)’s PPF scheme can be a great option for you.
let us know in detail about the SBI PPF scheme in this article today and how it can strengthen your retirement fund.
Safe and High-Return PPF Scheme
Public Provident Fund is a government scheme, which is a great investment option for the long term. You can invest in this scheme for 15 years.
However, after one year of maturity, it can be extended every 5 years. That is, if you want, you can take advantage of investing in this scheme for 20 years or even more.
The most important thing is that PPF is a completely safe investment option. In this, the government gives a guarantee, so the risk of investment is almost negligible. Also, you get the benefit of a great interest rate in this scheme.
Benefits of Investing in SBI PPF
Minimum investment amount: You can open an SBI PPF account with just ₹500.
Maximum investment limit: You can invest up to ₹1.5 lakh in a financial year.
Attractive interest rate: Currently, SBI PPF is offering an annual interest rate of 7.1%.
Tax exemption: You get an exemption under the Income Tax Act on investments made in PPF.
Loan facility: You can also take a loan on a part of your deposit amount.
Nomination facility: You can also add a nominee to your account.
Facility to open an account online: You can easily open a PPF account online through SBI internet banking.
Let’s Understand with an Example
Suppose, you deposit ₹1 lakh in SBI PPF account every year. So in 15 years, your total investment will be ₹15 lakh. On this, you will get a total interest of ₹ 12,12,139 at an annual interest rate of 7.1%. In this way, on maturity, you will receive a total amount of ₹ 27,12,139.
How to Open an SBI PPF Account
To open an SBI PPF account, you can go to your nearest State Bank of India branch or open an account online using the Internet banking facility. For this, you will have to submit some important documents, which include an Aadhaar card, PAN card, address proof, etc.