PPF investment before April 5: Investing in PPF account before April 5 can earn the PPF account holder more interest. Making lumpsum investment for the entire year after this date will make a PPF investor to lose a month s interest. Read on to know how much you lose if an individual misses this date.
Tax-saving investments: PPF offers tax exemptions at the time of investment, accrual, and withdrawal. It has a current interest rate of 7.1% per annum and a maximum deposit limit of Rs 1.5 lakh per financial year. PPF accounts can be extended indefinitely in blocks of 5 years. Additionally, it is advisable to diversify savings between PPF and equity investments for a balanced portfolio.
The Employees' Provident Fund Organisation (EPFO) has started crediting the interest to provident fund (PF) accounts, the government body said in a statement.