PPF Interest Rule: Do the work before 5th April, otherwise you will have to lose thousands of rupees.

PPF Interest Rule: The new financial year has started from April 1 and if you invest or are planning to invest in Public Provident Fund (PPF), then the first few days are very important for you. Especially the decisions taken in the first 5 days of April can affect your interest for the entire year. Even small delays can cause big losses in the long run.

Interest in PPF is calculated differently from normal investments. Here the interest is decided on the basis of the lowest balance present in the account from the 5th of every month till the last day of the month. Therefore, if you want to get full interest for the month of April, then it is necessary for you to deposit the money before 5th April.

Advantages of timely investment and disadvantages of delay

If you invest between 1st and 5th April, you get interest for the entire month of April. This means that your money will work for all 12 months of the year.

But if you deposit money on or after April 6, you will not get interest for April. In such a situation, the calculation of your earnings will start from May, due to which the interest of one month is directly reduced.

Understand complete mathematics with an example

Suppose you invest ₹ 1.5 lakh annually in PPF and the current interest rate is 7.1%. So if you invest by April 5, you will get interest for the whole year, which will be around ₹ 10,650. At the same time, if you invest after April 6, you will get interest only for 11 months, which can be limited to around ₹ 9,763.

That means a delay of just one day can result in a loss of around ₹800-₹900. Now imagine, how big this difference can be in a period of 15 years.

Why is PPF considered safe?

PPF is also popular among investors because it offers many benefits. Investing in this gives income tax exemption and the interest received is completely tax-free. Apart from this, this is a government scheme, so your money remains completely safe. It is considered a strong option for stable and safe returns in the long term.

What steps would be right to take now?

If you have already opened a PPF account and have money ready for investment, then deposit the amount before April 5 without any delay. With this you will be able to earn interest for the whole year.

If your account has not been opened yet, it would be beneficial to start it soon by going to the nearest bank or post office, so that you can take full advantage of this financial year.

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