The Central Government has issued an important advisory for investors in the Public Provident Fund (PPF) scheme, emphasizing the significance of investing before the 5th of every month.
This strategic move ensures investors receive maximum benefits and interest on their investments. Depositing money on or before the 5th of each month is crucial to capitalize on the PPF scheme’s potential.
Importance of the 5th Date:
Investors in the PPF scheme must remember to deposit money on the 5th of each month to optimize their returns.
Failure to do so may result in missing out on the interest for that particular month. It’s essential to be mindful of this date to make the most of the investment.
The Significance of 5th April:
Depositing the maximum limit of Rs. 1.5 lakh in a PPF account before the 5th of April each year is critical.
If the investment is made on the 20th of April, the interest will only be calculated for 11 months during that year.
However, investing on the 5th of April would yield a higher interest of Rs. 10,650 for the year.
PPF Interest Rate:
The PPF scheme offers an attractive interest rate of 7.1 percent. Interest is calculated based on the minimum balance between the 5th and the last date of the month, and it is added to the account within the same month.
Depositing money after the 5th of the month will result in interest accumulation from the following month.
Account Limitations:
A person can open only one PPF account, and any additional accounts opened after December 12, 2019, will be closed without any interest payment. Moreover, merging multiple PPF accounts is also prohibited.
By adhering to the government’s advice and investing before the 5th of each month, investors can maximize the benefits and potential returns from their PPF investments.
