PPF Account- If you have kept a PPF account open, then deposit the money by the date

Friends, as we all know, human life is full of uncertainties, in which no one knows what will happen, in such a situation, if we talk about retirement, then this is a big day for job and money individuals and is an issue to think about, people often take steps to ensure that they have enough savings for the future—whether it is through investing in shares, mutual funds or government schemes. One such popular and safe scheme is the Public Provident Fund (PPF). PPF has gained immense popularity due to its attractive interest rates, tax-saving benefits and most importantly, its security.

While many people know the benefits of investing in PPF, there is a common mistake that many people make unknowingly. This mistake can affect the returns on their investment, let's know about these mistakes-

Important role of date

When it comes to PPF, timing is everything. You might think that depositing money at any time of the month is fine, but that is far from the truth. The government has set certain specific dates that directly impact the calculation of interest on your PPF account. The key points are as follows:

Deposit before 5th of the month: If you deposit money in your PPF account between 1st and 5th of any month.

Deposit after 5th of the month: If you deposit money after the 5th, the interest for that particular month will not be applicable.

Why is it important?

The PPF scheme offers an annual compounded interest rate of over 7%, making it an attractive long-term investment option. Not getting interest for even one month can have a significant impact on your final deposit amount after 15 years.

Key points for PPF investors

Invest by the 5th of every month: Make sure you deposit money in your PPF account by the 5th of every month to get that month's interest.

Interest calculation: Interest is calculated on the amount deposited in your account by the end of the month, so timely deposits are a must.

Tax benefits: PPF accounts offer the added benefit of tax savings under Section 80C of the Income Tax Act, allowing you to save up to ₹1.5 lakh per year on your taxable income.

Long-term growth: PPF offers guaranteed returns, and with regular monthly deposits, your investment can grow significantly over a maturity period of 15 years.

Safe investment: PPF is backed by the government, so your investment is completely risk-free, unlike other market-based instruments.