PPF Updates: This is an important update regarding Public Provident Fund. If there is an idea to invest in it, the process should be completed by April 5. Otherwise there will be huge financial loss.
PPF Updates: Public Provident Fund Broadly speaking, an investment in a PPF scheme not only provides future protection but also the benefit of in-contact exemption. But definitely your investment should be completed by 5th April to get higher benefits. Otherwise there will be a lot of loss.
Public Provident Fund is a central government run scheme that provides high returns with zero risk. PPF interest is calculated on 5th of every month. If you are looking to deposit a large amount of money at once, you should complete it by April 5. Only then will the interest amount be paid. At present, the central government is paying 7.1 percent interest on PPF. PPF is for a tenure of 15 years. If you invest at the rate of 1.5 lakh per annum, you will get 18.18 lakh in the form of interest for 15 years. But the investment should be completed by 5th April every year.
If someone makes a deposit after April 5, the interest that person will get is only 15.84 lakhs. That means a loss of 2.69 lakhs. If money is invested in the PPF account on April 15, interest will be calculated on the balance from April 5 to April 30 as per PPF rules. Hence interest is not applicable on the amount deposited after 5th April. Currently, the government is paying 7.1 percent interest on PPF. Interest is calculated and paid on the balance in the account by the 5th of every month. That’s why if you want to deposit money in PPF, you have to do it by 5th.
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