Why should you invest ₹1.5 lakh in PPF before April 5? Know the reasons here

Investing in public provident fund (PPF) is common among most retail investors who want to not only earn a higher rate of interest by investing in small saving schemes but also save income tax..

Another key feature that one should keep in mind is that the interest is calculated on a monthly basis and is based on the lowest balance between the 5th and last date of every month..

In scenario one, at the time of calculating interest, the principal amount will be taken as the minimum of the amount on the 5th and the last date of the month, which will be 1.5 lakh (10,000 + 1,00,000)..

So, while you have 1.5 lakh in the PPF account in both scenarios, the interest earned on your amount differs widely because of the date on which you decided to invest the money...

It is advisable to invest before the 5th of the month because the monthly interest is calculated on the lowest of amounts that stand on the 5th and last date of the month..

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