What is the best month to invest in PPF? (2024)

What is the best month to invest in PPF?

If you follow the discussion above, the best month is therefore at the beginning of the financial year. Therefore April is the best month to invest in PPF since that will always give the highest interest.

Which date is best for PPF deposit?

However, experts suggest that it is beneficial to deposit money before the 5th of every month. This is because interest is calculated on the lowest balance in the PPF account after the 5th of every month to the last day of the month.

Is it better to invest monthly or annually in PPF?

However, if the investor does it last minute every financial year for 15 years, he would earn an interest of Rs 15,48,515 instead of Rs 18,18,209. The maturity amount will also come down to Rs 37,98,515 instead of Rs 40,68,209. Besides, investing in one go every financial year is also preferable to monthly deposits.

How can I get maximum interest on PPF?

How to Maximize PPF Returns? Invest before the 5th of every month. PPF interest is calculated on the lowest balance between the 5th and last day of every month.

Can I deposit 1.5 lakh in PPF in one time?

One can deposit a maximum of ₹1.50 lakh in one PPF account during a financial year.

Can I deposit 2 times in a month in PPF?

However, per the new PPF rules, there is no restriction on the number of deposits.

Is PPF better than LIC?

One needs to take their needs into account before investing in either LIC schemes or PPF. Both schemes offer tax benefits and are low-risk. If the motive of the investment is to create some wealth to beat inflation in the long run, the PPF may be a better choice.

Why is PPF not a good investment?

2) Long lock-in period

Amit Gupta, MD, SAG Infotech said PPF's long lock-in period of 15 years, makes it unsuitable for short-term needs. “Investors might have to consider other solutions if they have any immediate needs," said Khandare.

What is the interest rate of PPF in 2023-24?

The current PPF account interest rate remains unchanged by the Ministry of Finance for the current quarter 2023-24 is 7.10% p.a. as of February 2024.

Is it worth putting money in PPF?

The current interest rate for Q4 (January-March) FY 2023-24 for PPF accounts has been fixed at 7.1%, compounded annually. As compared to the corresponding fixed deposit (FD) rates in many banks, Public Provident Fund gives higher interest benefits to its subscribers.

How much will I get if I invest 1000 monthly in PPF for 15 years?

You will get ₹ 3,15,572 as maturity amount on Rs. 1000 deposits per month with 7.1% annual interest rate for 15 years. You can also deposit different amounts every month in PPF.

What is the highest PPF interest rate?

The PPF account interest rate for the recent quarter ranges up to 7.10% and is compounded on annual terms. The minimal tenure of investment is static till 15 years whereas the investment amount can vary between INR 500 to INR 1.50 lakhs within a financial year.

What is the best way to invest in PPF?

In addition to this, one must keep in mind that the minimum monthly balance between the last and fifth day of the month forms the basis for calculating the Public Provident Fund's interest. Therefore, if you are planning to invest in PPF on a monthly basis, it would be best to invest before the 5th of each month.

Can NRI invest in PPF?

Yes, NRIs can invest in PPF under the following conditions: NRIs may invest in the PPF account they opened when they were Resident Indians. They cannot open a new PPF account after assuming Non-Resident Indian status.

Which bank is best for PPF?

Can I have 2 PPF accounts?

No. Only one PPF account can be maintained by an individual, except for an account that is opened on behalf of a minor.

What happens if I don't deposit money in PPF account?

If you miss the PPF account minimum annual deposit requirement of Rs. 500 altogether it will lead to account deactivation. In such cases, you can reactivate the account by paying a penalty of Rs. 50 plus Rs.

Can I pay PPF using credit card?

No, you cannot invest in a Public Provident Fund (PPF) account using a credit card. PPF accounts are typically funded through cash deposits or transfers from a savings or current bank account. Credit cards are not accepted as a means of funding PPF accounts directly.

What happens to PPF after 15 years?

A PPF account can only be cancelled after 15 years from the end of the year in which the original subscription was made. The entire corpus can be withdrawn once you reach maturity. You must submit a properly completed Form C at the bank branch or post office where you hold your PPF account in order to do this.

Why PPF is better than NPS?

PPF is EEE (Exempt-Exempt-Exempt) category investment, which means your investment, interest earned, and maturity is tax exempt. While in NPS, your maturity is partially taxable, as you have to pay tax on annuity income. Both NPS and PPF are eligible for a deduction of upto Rs. 1.5 lakh Under section 80C.

Is anything better than PPF?

PPF deposits have a lock-in period of 15 years. Whereas your investment in mutual funds (open-ended) can be redeemed on any business day. The flexibility of redeeming your funds as per the requirement makes mutual funds investment much more liquid than PPF deposits.

Why PPF is better than MF?

Mutual funds vs PPF – both are good investment options, but they have different features and benefits. PPF is a low-risk investment option with a lock-in period of 15 years. While mutual funds are a market-driven vehicle and have no lock-in period (Except ELSS funds).

How risky is PPF?

Risk-free, guaranteed returns: The Public Provident Fund is backed by the Government of India. So, one of the most significant PPF account benefits is that it is entirely risk-free. The returns, too, are guaranteed by the government.

How long should we invest in PPF?

Maturity: A PPF account matures in 15 years, and you can extend it in blocks of 5 years each. You must extend the tenure within one year of maturity.

Which is better PPF or NSC?

With PPF, you need not pay any tax on the interest earned. However in case of NSC, income earned on interest is taxable at the respective slab rate of the individual. The interest accrued on NSC is taxable. But, the tax is deductible under Section 80C.