PPF Update: Big update for PPF Account holders. April 5th holds significant importance for investors. If you make your monthly investment before this date, you’ll receive the full interest for that month. To take advantage of this interest benefit, ensure your investment is completed by April 5th.
Interest for a PPF account is calculated monthly, specifically on the 5th of each month. This means that if you deposit a lump sum on April 5th at the start of the financial year, you will earn the full interest for that month.
If you invest after the 5th, you won’t receive the complete interest. Conversely, if you make your investment in the PPF account by the 5th, you’ll earn interest for the entire month on that amount. However, if you invest after the 5th, you’ll receive a lower interest rate on a smaller balance.
The PPF is a long-term savings scheme offered by the Government of India. You can open a PPF account at a post office or any nationalized bank branch. Investors benefit from compound interest, and this scheme is tax-free. Additionally, it offers a loan facility against the investment amount, along with guaranteed returns on your investment.
PPF is an excellent choice for secure investments. Many professionals turn to PPF primarily for tax benefits, but with smart investing, you can achieve impressive returns. To maximize your investment, consider contributing to your PPF account monthly, ensuring that your deposits are made by the 5th of each month. This timing allows you to earn interest for that month as well. Additionally, both the maturity amount and the interest earned from PPF are tax-free, making it a solid long-term investment strategy for building a substantial fund. You can also claim a tax deduction of up to Rs 1.50 lakh under section 80C for your PPF contributions.
The 5th of each month is crucial for your investments. If you choose to make a lump sum deposit in your PPF at the start of each financial year, doing so by April 5th can be particularly advantageous. The reason for this is that interest is calculated on the 5th of every month for PPF accounts. Therefore, by depositing a lump sum by April 5th at the beginning of the financial year, you can benefit from interest for the entire month.
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