Public Provident Fund Latest Interest Rate: Public Provident Fund (PPF) is one of the few popular options for investment, in which you not only get good returns but also save tax. But today here we will tell you how you can earn more profit than this.
New Delhi: Public Provident Fund Latest Interest Rate: If you are also thinking about investing, then this news is for you only. Public Provident Fund (PPF) is one of the preferred options for investment, which offers better returns as well as tax savings. But, due to adopting the wrong method of investment, people are not able to take full advantage of it.
In such a situation, if you get to know how the interest on PPF is calculated, then you can earn maximum interest and the return amount can increase manifold.
Interest rates on PPF have come down only last year
Last year, the government had drastically cut interest rates on small savings schemes. The interest rates on PPF are also at 7.1%. Let us tell you that the interest on small savings schemes and PPF is reviewed every quarter. These interest rates have a major impact on the rate of inflation.
How is interest calculated on PPF?
Interest is calculated every month on PPF, but it is credited to the account at the end of the financial year. That is, whatever interest you earn every month is put into your PPF account on March 31. However, there is no fixed date for when to deposit money in the PPF account. You can deposit money in PPF monthly, quarterly, half yearly and annually.
How to get higher interest on PPF
Let us now explain how interest is calculated. Interest on PPF is calculated on the amount in the account from 1st to 5th of every month. That is, if you put money in the PPF account till the 5th of any month, then interest will be received on that money in the same month, but if you deposited the money after the 5th ie on the 6th, then the interest on the deposited amount will be available in the next month. will get.
Let us understand this PPF calculation with an easy example. By which you will know how you can get more interest by investing money at the right time.
Example No.-1
Suppose you deposited Rs 50,000 in your account on 5th April, you already have Rs 10 lakhs in your account as on 31st March. 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 it at the rate of 7.1% is – (7.1%/12 X 1050000) = Rs 6212
Example number-2
Now suppose you did not deposit the amount of Rs 50000 till 5th April and then deposited it on 6th April. From April 5 to April 30, the minimum balance in your account will be Rs 10 lakh. What is the monthly interest on this at the rate of 7.1%
(7.1%/12 X 10,00,000) = Rs 5917
If you deposit with this trick, you will get more interest
Imagine, the investment amount is only 50,000, but the method of deposit made a difference in the 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 definitely get the interest for that month.
Experts also advise that investment of 1.5 lakh on PPF is tax exempt, so if you want to take this tax exemption, then deposit the entire amount of 1.5 lakh between April 1 and April 5 as soon as the new financial year starts. Give. If you are not able to do this, then deposit the money by the 5th of every month.
