Let us now explain how interest is calculated. Interest on PPF is calculated on the amount in the account from the 1st to the 5th of every month. That is, if you put money in PPF account till 5th of any month, then that money will get interest in the same month, but if you deposited money after 5th, that is, on 6th, then the interest on the deposited amount will be the next month. will get.
Example no. 1 for PPF Interest
Suppose you deposited Rs 50,000 in your account on April 5, till March 31, there is already 10 lakh rupees in your account. From April 5 to April 30, the total amount in your PPF account was Rs 10,50,000, which is the minimum balance. So, the monthly interest on this was 7.1 percent – (7.1% / 12 X 1050000) = Rs 6212.
Example no. 2
Now suppose you did not deposit the amount of 50000 rupees till 5 April and after that on 6 April. From April 5 to April 30, the minimum balance in your account will be 10 lakh rupees. What was the monthly interest on this as per 7.1% (7.1% / 12 X 10,00,000) = Rs 5917
If you deposit with this trick, you will get a lot of interest.
Think the amount of investment is 50,000, but the way of depositing made a difference in interest. In such a situation, if you want maximum interest on your money in PPF, then keep this trick in mind and deposit the money by the 5th of the month so that you get the interest of that month. Experts also recommend that PPF get tax rebate on investments of 1.5 lakh, so if you want to take this tax exemption, then deposit the entire amount of 1.5 lakh between 1st April to 5th April as soon as the new financial year starts. Give it. If you are not able to do this, then deposit the money by the 5th of every month.