PPF interest rate: Interest on PPF with this small move increases ..!

PPF Interest Rate: Public Provident Fund (PPF) interest rate is currently 7.1 %. PPF is an easy way to get more interest. Generally, interest on PPF is calculated at the lowest balance from 5th to the end of each month. Therefore, investors who want to contribute to PPF for the financial year 2024-25 should submit them by 5 April.

How to earn more on PPF deposit?

As mentioned earlier, interest is calculated at the lowest balance from 5th to each month of each month. Therefore, by April 5, PPF will provide high returns deposited in the account. This will especially benefit the deposit of single annual single. To prevent monthly contribution to avoid interest loss, one should be deposited by 5th of each month. PPF account interest is calculated monthly. Each financial year was deposited in the account.

For example ..

Here is an example of helping you understand it. For example, if you invest Rs 1.5 lakh in your PPF account by April 5, 2025, you will take into account the entire amount deposited for counting of interest that month. As per the current 7.1% interest rate, your annual interest income is Rs 10,650 (Rs 1,50,000 * 7.1%). This means that interest is Rs.87.5 (Rs 10,650/12) per month. Also, deposited after April 5 ..?

How much do you earn after 5 April?

At the same time, if you deposit Rs 1.5 lakh on your PPF account after April 5, the interest earned for the year (Rs. It means the interest will be reduced for a month. It may seem small in a year. But, this amount is bigger when the interest is mixed for a few years. Also, the last PPF end in a year, the end of the next year is added to the initial amount for the next year. Therefore, investing in PPF by 5th of every month will increase maturity corpus.

How to get high tax deduction income?

All PPF contributes are under the category ‘Rebate-Exeption-XIEE (exemption-free EEE)’ category. It should be noted that the amount deposited in the PPF account is exempted under Section 80C of the Income Tax Act. Your investment, interest on it, and even income tax amount will not come back. This is EE category. Therefore, by depositing within the 5th of each month, you will not only increase your returns, but will also get tax deduction income.

About PPF

PPF is a small savings scheme launched by the Government of India. It provides guarantee returns to investors. This is why it has become the top selection of traditional investors. This includes people investing from Rs 500 to Rs 1.5 lakh in installments or in the same year in a year. However, if the minimum deposit amount is not Rs 500 in the financial year, then the PPF account will be disabled. The PPF deadline is partial withdrawal from 15 years and fifth year.