How ₹1.5 Lakh Yearly in SBI PPF Can Make You ₹45 Lakh Without Paying Tax
Investing smartly is the foundation of a stable and secure financial future. Among India’s wide range of investment schemes, the Public Provident Fund (PPF) remains one of the most trusted and rewarding options. When managed through the State Bank of India (SBI) India’s largest and most reliable banking network it combines safety, stability, and convenience.
If you deposit ₹1.5 lakh every year, your investment can grow to approximately ₹45 lakh in 15 years, and the entire amount is completely tax-free.
What Is PPF?
The Public Provident Fund is a long-term savings plan supported by the Government of India. It encourages citizens to save regularly while enjoying assured returns. The scheme offers an interest rate between 7–8% per annum, compounded yearly.
Unlike most investment products, both the interest earned and maturity amount from a PPF account are 100% exempt from income tax, making it ideal for conservative and tax-conscious investors.
Why Choose SBI for PPF?
SBI is a household name known for its nationwide accessibility, strong customer service, and transparent operations. Opening a PPF account through SBI gives you easy digital access via internet banking or any nearby branch. You can track, deposit, and renew your PPF without hassle, ensuring your savings journey is smooth and reliable.
Key Benefits of Investing in SBI PPF
- Guaranteed Returns backed by the Government of India.
- Tax-Free Maturity under the EEE (Exempt-Exempt-Exempt) status.
- Long-Term Wealth Creation with disciplined annual deposits.
- Low-Risk Investment not affected by market fluctuations.
- Online Access for easy management via SBI Net Banking.
Tax Advantages of SBI PPF
The SBI PPF scheme offers triple tax benefits:
- Investment Deduction: Contributions qualify for deduction under Section 80C (up to ₹1.5 lakh).
- Tax-Free Interest: Annual interest earned is exempt from tax.
- Tax-Free Maturity: The final amount received after 15 years is not taxed.
This makes it one of the few instruments in India offering full tax exemption at all three stages investment, growth, and withdrawal.
How Interest is Calculated
Interest in a PPF account is calculated on the lowest balance between the 5th and the last day of each month and is compounded annually. To maximize returns, it’s ideal to deposit your amount before the 5th of April every financial year.
Account Opening Process
You can open an SBI PPF account either online or offline:
- Online: Log in to your SBI net banking account → Click “New PPF Account” → Submit details and KYC → Deposit amount.
- Offline: Visit the nearest SBI branch with ID proof, address proof, and photographs.
Once active, you can easily manage contributions and view your balance through SBI’s digital portal.
Withdrawal and Loan Facility
- Partial withdrawals are allowed after the 7th financial year.
- You can extend your PPF account in blocks of 5 years after maturity.
- SBI also allows you to take a loan against your PPF balance between the 3rd and 6th year, providing liquidity during emergencies.
Estimated Returns from SBI PPF
SBI PPF Investment Projection (₹1.5 Lakh Annually)
| Year | Annual Deposit (₹) | Total Investment (₹) | Approx. Interest (₹) | Corpus Value (₹) |
|---|---|---|---|---|
| 1 | 1,50,000 | 1,50,000 | 10,800 | 1,60,800 |
| 5 | 1,50,000 | 7,50,000 | 1,80,000 | 9,30,000 |
| 10 | 1,50,000 | 15,00,000 | 6,20,000 | 21,20,000 |
| 15 | 1,50,000 | 22,50,000 | 22,50,000 | ≈ ₹45,00,000 |
Note: Returns are approximate and depend on the prevailing interest rate, currently around 7.1%.
Final Verdict
The SBI PPF scheme is one of the safest and most rewarding long-term investment options available in India today. It combines steady compounding, tax-free returns, and complete government security making it ideal for both new and experienced investors.
By investing ₹1.5 lakh every year, you can build a ₹45 lakh+ tax-free corpus in 15 years, all while enjoying peace of mind and financial discipline. For anyone seeking a low-risk, high-trust investment for the future, SBI PPF is a top choice in 2025.
Disclaimer
This content is meant for educational and informational purposes only. The figures, interest rates, and projections are indicative and may vary with government revisions. Always verify the latest SBI and Government of India guidelines before investing. The author and publisher are not responsible for any financial decisions made based on this information. Consult a certified financial advisor for personalized investment advice.
