PPF Investment Rule : There is important news for people who deposit money in Public Provident Fund ( PPF ), because 5th April is very important for them. Actually, if you invest monthly before 5th April, then you get the full interest of that month. To take advantage of the interest, you must make your monthly investment by 5th April.
PPF Investment Rule
PPF calculates interest in the PPF ( Public Provident Fund ) account every month according to the 5th date. That is, if you deposit a lump sum amount on 5th April at the beginning of every financial year, then you will get full interest.
Deposit in PPF Before 5th of the Month to Earn Full Interest
At the same time, if a person invests in a PPF account by the 5th of the month, then he will get interest for the whole month on that money. At the same time, if a person invests his amount in the PPF ( Public Provident Fund ) after the 5th, then he will get the benefit of less interest on less balance.
Public Provident Fund is a long term savings scheme
Let us tell you that PPF is a long term savings scheme of the Government of India. PPF account can be opened in post office and any nationalized bank branch. People who invest in it get compound interest. This scheme is tax free. Also, loan facility is being provided on the investment amount. Apart from this, guaranteed return is available on the investment amount.
How to open PPF account in SBI
SBI (State Bank of India) customers can use the bank’s net banking website or YONO app to open PPF ( Public Provident Fund ) account online from home.
Process to open PPF account through SBI Net Banking
- Go to the official website of SBI Net Banking
- Login by entering username and password
- After this go to the “Accounts” section
- Then click on New PPF Account
- Fill the required information (name, PAN number, nominee details etc.)
- Select your branch and submit the form
- After this an OTP will come on the mobile. Do the OTP verification and confirm the application.
- After this your PPF account will be opened. Note down the PPF account number.
Process to open PPF account through YONO app
- Go to the Accounts section of SBI YONO app
- Select the “Open PPF Account” option
- Fill the details and submit
- Verify through the OTP received on the registered mobile number
- Your PPF ( Public Provident Fund ) account will be opened successfully
PPF Deposit Limit & 15-Year Lock-In Explained
You can deposit a minimum of Rs 500 in a year in Public Provident Fund, while the maximum deposit amount is 1.5 lakh rupees. You can deposit this money in installments or lump sum. To deposit in installment form, investors get the option of 12 installments in a year, that is, you can deposit money every month.
Let us tell you that there is a lock-in period of 15 years in a PPF ( Public Provident Fund ) account, under which you cannot withdraw the investment money for the first five years of opening the account.
Public Provident Fund Calculator : ₹1.5 Lakh/Year Grows to ₹40.6 Lakh in 15 Years
According to the PPF Calculator, if you deposit 1.5 lakh rupees every year in PPF, then in 15 years you will invest a total of 22,50,000 rupees in this scheme. Interest is being given on this Public Provident Fund at the rate of 7.1%, so in 15 years you will get 18,18,209 rupees as interest at the rate of 7.1%. In this way, if you withdraw the money after 15 years, you will get a total of Rs 40,68,209 as maturity amount.
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