The Public Provident Fund (PPF) scheme from the State Bank of India is an excellent way to secure a financial cushion for your future. With guaranteed returns and attractive interest rates, this government-backed scheme allows you to grow your wealth steadily while ensuring financial security.
Under the SBI PPF Scheme, you invest for a 15-year period, earning a 7.1% annual interest rate. Indian citizens can take advantage of this scheme, and it’s one of the safest investment options available today.
If you’re planning to invest ₹2,000 monthly in the PPF scheme, here’s a detailed breakdown of how much return you can expect after 15 years. By the end of this article, you’ll have a clear idea of the financial benefits this scheme offers.
How to Invest in SBI’s PPF Scheme
Investing in the SBI PPF Scheme is straightforward. You can visit any SBI branch, fill out the required forms, attach the necessary documents, and submit them to the bank. Once the bank verifies your details, your PPF account will be opened, and you’ll be able to make your first deposit. You’ll also receive a PPF passbook, where all your transactions will be recorded.
For those who prefer digital banking, SBI allows you to open a PPF account through its mobile app or internet banking platform, making the process quick and convenient.
Who Can Open a PPF Account?
Any Indian citizen who is at least 18 years old can open a PPF account. You can start investing for a tenure of 15 years, and contributions can be made either monthly or annually, depending on your preference.
Investment Limits in SBI PPF Scheme
The minimum amount required to invest in the PPF scheme is ₹1,000 annually, and you can invest a maximum of ₹1.5 lakh per year. This flexibility makes it a great option for both small and large investors.
No matter where you invest in the PPF scheme—be it a bank or a post office—the interest rates remain the same since the scheme is run by the Government of India. In case the bank or financial institution where you’ve invested shuts down, your PPF account will be transferred to another institution by the government.
Returns on Investing ₹2,000 Monthly in SBI PPF Scheme
Now, let’s look at the most important part—how much you’ll earn by investing ₹2,000 per month.
If you contribute ₹2,000 every month, your annual investment will total ₹24,000. Over the 15-year period, your total investment will be ₹3,60,000.
The bank offers a 7.1% annual interest rate, compounded yearly. By the end of the 15-year term, your total return will be ₹6,50,913, including ₹2,90,913 in interest earnings. This means your initial investment of ₹3,60,000 will grow by ₹2,90,913 through the power of compound interest.
