SBI Investment Scheme: Saving just Rs 2500 a month will give you Rs 8 lakh, know full details

If you are a salaried person, then you should invest a part of your earnings in a place where you get good returns, which will help you in your bad times. If you are thinking of such an investment, Public Provident Fund (PPF) is perfect, a government-backed savings scheme designed to provide a safe and attractive way to invest. With its long-term horizon and favorable interest rates, PPF has become a popular choice for individuals who want to secure their financial future. Let's know its full details.

Key features of the PPF scheme

Opening an account: You can open a PPF account in any bank or post office. If you are a customer of State Bank of India (SBI), you can also do so online through the SBI YONO app.

Investment period: The maturity period of PPF is 15 years. However, you can extend your investment for an additional 5-year period if you wish.

Minimum and maximum contribution: You can start investing with a minimum deposit of ₹500 per month, and you can invest up to ₹1.5 lakh in a financial year.

Attractive interest rate: The interest rate currently offered is 7.1%, compounded on a quarterly basis, which offers better returns than traditional fixed deposits.

Flexible investment options: Investors can choose to make monthly, quarterly, half-yearly or annual contributions, allowing for personalized investment strategies.

Tax benefits: Contributions to PPF are eligible for tax deduction under Section 80C of the Income Tax Act, making it an attractive option for tax savings.

Estimated Returns on Investment

If you decide to save ₹2,500 every month in your PPF account, you can expect the following:

Total Investment: Over 15 years, your total investment would be ₹4,50,000.

Interest Earned: At an interest rate of 7.1%, the total amount you will receive on maturity would be around ₹8,13,642.

Return Details: This means that out of the total amount, ₹3,63,642 will be earned as interest.