Which is the best time to invest in PPF?

Which is the best month to open a PPF account?

There is no specific due date as to when you should deposit money in a PPF account. However, it is beneficial for you to deposit money between 1 April and 5 April of a financial year.

Which date is best for PPF deposit?

Although PPF interest is credited annually, it is calculated monthly based on the minimum balance in the account between 5th and end of every month. So it is important to deposit your monthly contribution before fifth of every month if you are contributing on a monthly basis.

Is LIC better than PPF?

While LIC policies serve the purpose of insurance, a PPF serves the purpose of savings. PPF is a Public Provident Fund meant for long-term savings and retirement.


Points LIC PPF
Risk Safe Safest
Target audience Caters to those who have dependents Caters to everyone
Tenure Flexible 15 years

Can I have 2 PPF accounts?

A person can not open more than one PPF account in his / her name, as per PPF regulations. In case you have two PPF accounts the second would be regarded as invalid since it is not authorized under the regulations. And because of its lock-in period of 15 years, you also can not close the second PPF account if any.

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Is PPF really worth?

If you invest Rs 50,000 each year in PPF you can build a corpus of Rs 14.06 lakh in 15 years, if the interest rate remains at 7.1%. However, if you extend it for another 5 years this amount increases to Rs 22.69 lakh. With 3 such extensions and with a total investment period of 30 years you can accumulate Rs 52 lakh.

How can I get maximum PPF benefits?

Therefore, if you are making staggered investment on a monthly basis in PPF, it is advisable that you do it before the fifth of every month. However, maximum interest can be earned only if you deposit the sum at the beginning of the year.

Can I invest in both PPF and LIC?

In contrast, LIC plans help you provide financial security to your family in case of your premature demise. Thus, the rationale for buying both schemes is different. However, if you are looking from the investment point of view, you can pick PPF for fixed returns or LIC ULIPs for market-linked gains.

Can husband and wife both have PPF account?

By, opening PPF account in the name of spouse, the investor will be able to double one’s investment limit from ₹1.5 lakh to ₹3 lakh and will enjoy income tax exemption on PPF interest earned and PPF maturity amount in both PPF account.”

Can I continue PPF after 15 years?

NEW DELHI: A Public Provident Fund (PPF) matures in 15 years. But it’s not mandatory for the depositor to close the account. You can extend it indefinitely in blocks of five years. One option for the account holder is to withdraw the entire amount, including interest, and close the account on maturity.

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Can we increase PPF amount?

Extend PPF for 5 years after maturity

Now if one extends PPF for 5 years, and continues to invest Rs 1000 every month, then after 5 years, the amount of Rs 3.25 lakh will increase to Rs 5.32 lakh.