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Why should invest in PPF before 5th of every month, know this very profitable thing

Public Provident Fund: Public Provident Fund is one such scheme under Small Saving Schemes, which gives huge profits to the investors in the long term. Under this scheme, there is a maturity period of 15 years. However, this maturity period can be further extended by 5-5 years. Up to Rs 1.5 lakh can be invested annually under this scheme.

If you also invest in PPF, then you should deposit the money before or on the 5th of every month. If you do not do this, you may have to bear the loss of your interest. If you deposit money before this date, then the interest of that month is also added to your account, but if the investment is made after the 5th, then the interest of that month will not be given to you.

Understand with example how to get more profit

If suppose you deposit Rs 1.5 lakh annually in PPF and if you deposit this amount in PPF account on April 20, then during this financial year you will get only 11 months interest. This means that you will take an interest of Rs 9,762.50 for the financial year 2023-24, but if you deposit this amount on April 5, you will get a profit of Rs 10,650.

how much interest in ppf

Public Provident Fund interest has not increased for a long time. 7.1% interest is issued under PPF account. The government fixes the interest rate every year and adds it to your account on March 31, but it is calculated every month.

Income tax benefits in PPF

Most people invest in Public Provident Fund for tax saving. This scheme is operated under small savings scheme and it is tax free, because the maximum investment limit in it is Rs 1.5 lakh. This scheme is a good option for people investing in retirement and long term.


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