The maximum annual investment that can be made in a PPF account is Rs 1.5 lakh. At the same time, interest of 7.1 percent is being given on the amount invested in the PPF account.
PPF: Investing in Public Provident Fund is absolutely safe. Most of the people invest in PPF for tax saving. While they also get good returns on the amount invested in PPF. Let us tell you that PPF can be invested in long term in which maximum one lakh fifty thousand rupees and minimum one thousand rupees can be invested annually. You can invest in PPF both annually and monthly as per your convenience.
Investing before April 5 earns more interest – Salary best people invest mostly in PPF account towards the end of the financial year. However, according to experts, to get higher returns in this scheme, investors should invest in the beginning of the financial year i.e. between April 1 and 4.
According to the rules of PPF, interest is earned on the minimum balance deposited from the 5th to the end of the month on the amount invested in the PPF account. Let us tell you that the calculation of interest in the PPF account is done every month but the interest in the account is credited at the end of the financial year. If you deposit money in this account before 5th April, you will also be eligible for the interest for that month. If you deposit money after the 5th, then you will have to bear the loss of interest.
Calculation of Interest on PPF Account – Interest is paid on the minimum balance between the 5th of the month to the last date of the month in the PPF account. For example, if you deposit money after the 5th of the month, then the amount will be in the account in the previous month. Interest will be calculated on it. If you deposit money before 5th of any month, then interest will be calculated on the balance this month along with the previous month.
This percentage of interest is available on PPF – At present, interest of 7.1 percent is being given on PPF account which is compounded annually. On the other hand, PPF account is invested for 15 years, which can be extended twice for 5-5 years. At the same time, the interest earned on PPF account is tax free under section 80C of Income Tax.
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