If you want to earn more interest than the money deposited in your PPF (Public Provident Fund), keep one thing in mind. By the way, people do not pay much attention to small things while investing. But the tips we are telling today is easy and small but if we use it, you will get more interest on PPF account. An interesting thing is that you get more interest not only on the investment amount but also on the timing of investment.
How is the interest calculated on PPF?
PThe interest of PF is withdrawn at the lowest amount in your account between the 5th of the month to the last day of the month. If you put the money after the 5th, then there will be no interest on the money deposited in that month. Interest will start connecting from next month itself. For example, if you deposited ₹ 1.5 lakh on July 6, you will not get the interest of July, when the same amount would have been received for the entire month by putting the same amount.
Why July is the best month?
If you want to enter a full annual limit (₹ 1.5 lakh) at a time, then submit it before the 5th as soon as possible. This will give you interest for the remaining 8 months of financial year. If you deposit the money on July 20, you will not get the interest of this month, and the interest will be counted from August. That is, the delay, the less interest.
When to deposit the monthly and annual amount in PPF?
You can invest in a single or monthly installment in PPF. If you want to put money every month, then keep in mind that money is deposited before the 5th of every month. If you want, you can also set an automatic transfer from your bank, so that any month or mistake can be avoided. The best way is to deposit lump sum in the public provident fund by 5th of April so that the interest of the whole year is received, but if you put money by 5th in July too, you will get a big benefit.
In this trick you do not need to invest extra money, just take care of the date. If you do not invest for the financial year at the moment, then do your next installment or complete deposit before the 5th of every month, so that you can take full advantage of interest and get more benefit of compounding in 15 years lock-in.