If you are planning to invest in Public Provident Fund (PPF) for the financial year 2025-26, then today i.e. 5th April, is the best opportunity to make this investment.
PPF is not only a reliable and safe investment option, but it is also a great means of tax savings. Currently, it gives 7.1% annual interest and its tenure is 15 years.
The special thing is that under the old tax system, the investment made in PPF, the interest received on it and the entire amount received on maturity – all three are completely tax free. However, in the new tax system, no tax exemption is given on it at present.
When is the best time to invest in PPF?
It is often seen that people hurry up to invest in PPF and at the end of the year, put money in this scheme to save tax. But by doing this, they miss out on a big benefit of PPF – that is, interest for the whole year. Because interest in PPF is calculated on the basis of the minimum amount present in the account from the 5th of every month to the end of the month. That is, if you deposit money after April, you will not get the interest for the first month, and the interest for the whole year will be available for 11 months instead of 12.
Also read: Big relief for consumers – no charges for updating nominee details in PPF accounts, FM says
So, if you want to get interest for the entire 12 months on your entire investment amount, then it would be best to invest in your PPF account on or before April 5.
For example, if you deposit the entire annual amount of Rs 1.5 lakh today, then this entire amount will start earning interest from April itself. On the other hand, if you deposit the same amount on April 6, then you will not get interest for the month of April – due to which you will lose one month’s interest.
Now if for some reason you are unable to invest today i.e. by April 5, then there is no need to worry. You can invest in PPF anytime in the entire financial year. Just keep in mind that the sooner you invest,
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