If you invest in PPF then today is a very important day for you. We are saying this because there is a fixed date for depositing money in PPF. The day you have to put your monthly contribution in it. With this, you get the right benefit of the interest you are getting on it. Let us know why today is so important for you.
To deposit money in PPF, you should always put your contribution on 5th of the month. If you put money on 6 instead of 5, then you will not get the benefit of interest on it. The 5th of every month is very special for you, so you should note it somewhere and write it down.
read this also: This strategy will work for you to earn from PPF, you will get more benefit by depositing money on this day
Because of this special date
Suppose you have put your contribution of 1.5 lakh in PPF on or before 5th of this month, then you get the benefit of the interest added before the 5th of this month. In this way you will be able to deposit more interest.
Let us tell you, the interest rate on PPF account is calculated on the minimum balance between the fifth day of every month and the last day of the month. So if you deposit money before 5th of the month, then you get interest for the whole month. But, if you deposit in 6 or last days then you will get less interest for one month.
Understand calculation like this
Suppose a person named Ramesh deposited Rs 1.5 lakh in PPF before April 5. Now Ramesh will get 7.1% interest on the lowest balance amount between April 5 and the last of the month. On Rs 1.5 lakh, you get an interest of Rs 10,650. On the other hand, if Ramesh deposits his contribution on 6th April instead of 5th, then he will not get interest for this month. He will get only Rs 9,762.50 as interest for 11 months at 7.1 per cent interest rate.
This much money will go after 15 years
Your money in PPF account comes with a lock-in period of 15 years. Now if Ramesh puts Rs 1.5 lakh in PPF before 5th, he will get Rs 18,18,209 as interest after 15 years. On the other hand, if he deposits after 6 or after that, he will get only Rs 15,48,515 as interest. At the same time, the total maturity amount will also be Rs 37,98,515 instead of Rs 40,68,209.