Investors, if planning to invest in PPF (Public Provident Fund) must try to deposit their investment into their PPF account before fifth of every month. This would help them get interest benefits for that particular month.
Every year, the government considers the interest rate and adds it to your PPF account on 31st March. This is actually calculated each month, which means if you invest every month before 5th then the interest would be calculated for that particular month. Also, if you miss out on the deadline, then you will miss out on the interest rate for that particular month. So, investing in a PPF account or depositing money will help you gain interest for the whole year.
Consider if you invest Rs 1.5 lakh in a PPF account on 21st May then you will not get the 7.1 percent interest. This means you will miss out on the interest for that particular month, and PPF will add interest for the next month. You will get interest for only 11 months which means that you may earn Rs 9,762.50 for FY2026-2027. But, if you invest before 5th April then you may earn Rs 10,650.
So, it is better to invest in the PPF at the start of the year. You may earn interest on the deposits for the complete year. Investors may invest a lump sum amount before 5th April to get the maximum benefit. Money should be deposited before the 5th of every month for maximum profits.
PPF and income tax benefits
Investors under the new tax rule might not get the deduction benefit, but they can enjoy tax-free returns in the long run, which makes PPF the best investment option for retirement. Also, the interest rates are the same from 1st April 2026. The interest rate would remain the same from 1st April 2026 to 30 June 2026 for the fourth quarter, as the finance ministry has shared in the notification. So, if you want to invest in PPF, make sure that you invest before the 5th of each month to get tax benefits.
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