Investing In PPF? Here’s Why You Should Do It Before The 5th Of Every Month

Investing in PPF? Here's Why You Should Do It Before the 5th of Every Month

One of the Small Saving Schemes is the Public Provident Fund (PPF), which is a long-term investment plan. With a 15-year maturity that can be extended for an additional five years, it provides investors significant returns. Each year, an individual may invest up to Rs 1.5 lakh in this scheme.

It is recommended to deposit the funds before or on the fifth of each month to maximise rewards. If the funds are deposited after the fifth of the month, interest for that month may not be earned. For instance, if someone deposits Rs 1.5 lakh in a PPF on April 20, they will only be eligible for interest payments for 11 months of the financial year, resulting in a return of Rs 9,762.50 for the financial year 2023–24. The same amount deposited on April 5 will, however, result in a profit of Rs 10,650 for the same time period.

The PPF interest rate has been fixed at 7.1 percent for a considerable amount of time. The interest rate is set by the government each year and credited to the account on March 31st, albeit it is calculated on a monthly basis.

The PPF scheme, which has a maximum investment limit of Rs. 1.5 lakh, is a common option for tax benefits. It is tax-free because it is a Small Saving Scheme. For those who want to invest for the long term or for retirement, this program is the best option.


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