PPF Deadline: Big news for investors. If you have a PPF account or are thinking of opening one,it’s crucial to invest by April 5th. PPF interest is calculated based on the lowest balance between the 5th of each month and the end of the month. If you deposit before April 5th,your entire deposit will start earning interest from April 5th. However,if you deposit after April 5th,you won’t receive interest for that month and will start earning interest the following month.
What is PPF?
The Public Provident Fund (PPF) is a long-term savings scheme that is popular due to its high interest rates and tax benefits. It is considered a safe investment,especially for retirement. Currently,it offers 7.1% interest for the April-June 2026 quarter,and the interest earned is completely tax-free.
The advantage of investing early
Investing just a few days earlier each year can yield significant long-term gains. This difference gradually increases through compound interest. If you invest Rs 1.5 lakh each year at the beginning of April,your money grows over time and ultimately accumulates a substantial amount.
What a difference 15 years will make?
Suppose you invest Rs 1.5 lakh annually. If you invest between April 1st and 5th each year,your total investment of Rs 22.5 lakh becomes approximately Rs 40.68 lakh over 15 years. Of this,approximately Rs 18.18 lakh is earned as interest. This is because each installment earns interest throughout the year,and the first installment grows over the entire 15 years.
If you invest late each year,at the end of the year,the same amount would only amount to approximately Rs 37.80 lakh,and the interest earned would only be approximately Rs 15.31 lakh. This means that simply delaying your investment could result in a loss of approximately Rs 2.9 lakh. When investing in PPF,it’s not just about making deposits,but also about timing them. If you invest before April 5th each year,your money will last longer and earn better returns. This small timing habit can pay off big in the long run.
