SBI PPF Scheme 2025: Invest ₹50,000 and Get ₹13.56 Lakh – Full Interest Chart and Tax Benefits Inside
The Public Provident Fund (PPF) remains one of the most trusted and secure investment options in India. Managed by the Government of India and available at State Bank of India (SBI) branches, the PPF scheme is known for its long-term stability, attractive interest rates, and tax-saving benefits.
As we step into 2025, the SBI PPF Scheme continues to gain popularity, especially among conservative investors looking for guaranteed returns. In this article, we will break down how a simple investment of ₹50,000 annually can help you build a corpus of ₹13.56 lakh over time. We’ll also cover the latest interest chart, tax advantages, and everything else you need to know in an easy-to-understand manner.
What is SBI PPF Scheme?
The SBI PPF (Public Provident Fund) Scheme is a government-backed savings plan that helps individuals save money over a long period while earning a fixed interest rate. The money you invest is locked in for 15 years, but it grows steadily thanks to compounding. Since it is a central government scheme, it is also one of the safest ways to save money in India.
How Does It Work?
When you invest a certain amount every year (for example, ₹50,000), the money earns interest yearly, and the interest is added to your account. Over time, the compounding effect significantly increases the final maturity amount.
Let’s see what happens if you invest ₹50,000 every year without fail for 15 years.
Overview Table: SBI PPF Investment Projection (2025 Edition)
| Year | Annual Deposit (₹) | Interest Earned (₹) | Year-End Balance (₹) |
|---|---|---|---|
| 1 | 50,000 | 3,250 | 53,250 |
| 2 | 50,000 | 6,986 | 1,10,236 |
| 3 | 50,000 | 11,267 | 1,71,503 |
| 4 | 50,000 | 16,130 | 2,37,633 |
| 5 | 50,000 | 21,626 | 3,09,259 |
| 6 | 50,000 | 27,808 | 3,87,067 |
| 7 | 50,000 | 34,740 | 4,71,807 |
| 8 | 50,000 | 42,492 | 5,64,299 |
| 9 | 50,000 | 51,140 | 6,65,439 |
| 10 | 50,000 | 60,766 | 7,76,205 |
| 11 | 50,000 | 71,459 | 8,97,664 |
| 12 | 50,000 | 83,317 | 10,30,981 |
| 13 | 50,000 | 96,452 | 11,77,433 |
| 14 | 50,000 | 1,11,001 | 13,38,434 |
| 15 | 50,000 | 1,17,936 | 14,56,370 |
Note: Interest assumed at 7.5% per annum, compounded yearly. Actual figures may vary depending on government notifications.
Benefits of SBI PPF Scheme
1. Safe and Government-Backed
Your money is completely secure as it is backed by the Indian government. It does not depend on market conditions, so there’s no risk involved.
2. Attractive Interest Rate
The current interest rate for PPF is around 7.5% per annum. It is reviewed every quarter by the Ministry of Finance. Historically, PPF rates have always remained higher than regular savings accounts.
3. Long-Term Wealth Creation
Even a modest investment of ₹50,000 per year can grow into a significant corpus over 15 years. With the power of compounding, your money multiplies faster than you might expect.
4. Tax-Free Returns
The PPF scheme falls under the EEE (Exempt-Exempt-Exempt) category:
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Your investment is tax-exempt under Section 80C (up to ₹1.5 lakh per year).
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Interest earned is not taxable.
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The maturity amount is also tax-free.
5. Loan and Partial Withdrawal Facility
You can take a loan against your PPF balance after 3 years. From the 7th year onward, partial withdrawals are allowed for specific needs like education or medical emergencies.
Full Interest Chart at ₹50,000 Per Year Investment (Yearly Contributions)
By investing ₹50,000 each year, you can earn:
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Around ₹14.56 lakh at the end of 15 years
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If extended for another 5 years (with or without contribution), this amount can go over ₹22 lakh, depending on the interest rate
This makes PPF ideal not only for retirement planning but also for long-term goals like children’s education or marriage.
How to Open an SBI PPF Account?
Opening a PPF account with SBI is quite simple:
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Visit any SBI branch or apply through SBI’s online net banking portal.
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Submit KYC documents such as Aadhaar, PAN, and a photograph.
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Start investing with as little as ₹500. You can invest up to ₹1.5 lakh in a financial year.
Things to Keep in Mind
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Minimum deposit: ₹500 per year is required to keep the account active.
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Maximum deposit: ₹1.5 lakh per year (as per current rules).
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Tenure: 15 years, extendable in blocks of 5 years.
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Frequency: You can invest lump sum or in installments (maximum 12 per year).
Frequently Asked Questions (FAQs)
Q1: Can I withdraw my PPF amount before 15 years?
A: You can make partial withdrawals from the 7th financial year, but full withdrawal is allowed only after 15 years.
Q2: Is it necessary to invest ₹50,000 every year?
A: No, you can invest any amount between ₹500 and ₹1.5 lakh per year as per your convenience.
Q3: Is the interest rate fixed?
A: No, the interest rate is decided by the government every quarter. However, once credited, it cannot be changed for past deposits.
Q4: Can I open more than one PPF account?
A: No, only one PPF account is allowed per person, excluding minors for whom a separate account can be opened by a guardian.
Q5: What happens if I miss a year of investment?
A: If you don’t deposit the minimum ₹500 in a year, the account becomes inactive. You’ll need to pay a penalty to reactivate it.
Conclusion
The SBI PPF Scheme 2025 continues to stand strong as a reliable option for Indian savers. With disciplined yearly investments, such as ₹50,000, you can build a tax-free, risk-free corpus of over ₹13.5 lakh in 15 years. It’s a great tool for anyone planning for long-term goals without wanting to worry about market ups and downs.
If you haven’t started your PPF journey yet, 2025 is a great year to begin. Take control of your future today with this safe and rewarding investment option.