PPF Investment Alert: If you have a Public Provident Fund (PPF) account or you are planning to start investing in it, then this news is very important for you. According to financial experts, the best time to invest in PPF is between 1st and 5th of every month. If you deposit money after April 5, you will not get interest for the entire month of April, which can have a direct impact on your returns.
PPF is a safe and long-term investment option, which offers interest rates fixed by the government. At present attractive interest is being given on this scheme and it is also tax free. But very few people are aware that the interest is calculated on the basis of minimum balance between the 5th of every month and the last day of the month.
That means if you deposit money by April 5, that amount will earn interest for the entire month. At the same time, if you invested on or after April 6, then you will not get interest on that amount for the month of April and the interest calculation will start from May. This small mistake can have a big impact on your total returns in a year.
Experts advise that investors should deposit money in PPF at the beginning of every month, so that they can get the maximum interest benefit. It becomes even more important to invest on time, especially at the beginning of the financial year i.e. in April, as it affects the returns for the entire year.
Apart from this, a minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested annually in PPF. The scheme comes with a lock-in period of 15 years, but partial withdrawal and loan facilities are also available if needed.
If you want good returns with safe investment, then PPF is a great option. Just keep in mind that investing before the 5th of every month plays an important role in increasing your earnings.
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