Skip to main content

How to earn maximum interest on PPF

Tips to Earn Maximum Interest on PPF

ppf maximum interest rate

The Public Provident Fund (PPF) is one of the most popular, unique and preferred savings product available for consumers to invest. An extremely secure product and offering guaranteed returns, PPF is completely exempt from taxes. It falls under the Exempt-Exempt-Exempt (EEE) category.

Your PPF contributions allow a tax deduction of up to ₹ 1.5 lakhs per annum. Funds in your PPF account are compounded annually. Thus, it is beneficial to include PPF in your overall investment and savings portfolio. Now we tell you how you can maximise interest on your PPF contribution.  

How to Calculate Interest on PPF? 

The Government announces the interest rate on PPF for each financial year annually. The current interest rate on PPF contributions is 7.1%. The balance in your PPF account is compounded annually, but it also earns compound interest every month.

You can calculate the interest earned on PPF by using PPF calculator available freely. You may choose the frequency at which you wish to contribute (monthly, quarterly, half-yearly or annually) and the amount you wish to contribute.

The PPF calculator will automatically indicate the principal amount to be contributed, the maturity amount and the overall interest earned.

How to Earn Maximum Interest on PPF?

One thing to get maximum interest rate is to contribute by the 5th of every month.
The interest is calculated on the minimum balance between the 5th of the month and the last day. Thus, you must contribute by the 5th of every month. If you contribute funds even on the 6th of any month, this amount will not be considered for interest calculation until the next month comes up.

If it hits your PPF account on the 6th, then it will be calculated between the 6th and the end of the month. This means your money could be lying in your account without earning any interest for one whole month, or more.

Contribute up to ₹ 1.5 lakh per annum

You can contribute up to ₹ 1.5 lakh per annum to your PPF account. It is ideal to invest maximum in your PPF account every year to make the most of this opportunity.

Suppose you contribute ₹1.5 lakhs per annum for 15 years. Consider that the rate of interest is 7.1%. The maturity amount after 15 years will be ₹ 40,68,208.

Max out your PPF account by April 5th 

You can make any number of contributions in a financial year or you can do it every month for all 12 months or do it once in a year thats your choice but total amount must be ₹ 1.5 lakhs for maximum benefits. To earn maximum interest, you should contribute the entire amount by the 5th of April. Thus, interest will be calculated on this amount for the next 12 months. This will fasten up the pace of compounding your savings. 

You must open a PPF account, irrespective of whether you already have an employee provident fund account or are self-employed.

A Public Provident Fund (PPF) account can be opened via your savings account internet banking. It's a completely paperless process and you can make online contributions every year easily with the comfort of your home or office. This is the way for getting maximum interest on PPF.

Recent Posts

Popular posts from this blog

Nagarhole National Park Safari Booking Online

Nagarhole National Park Safari Booking Online There is good news for all wildlife enthusiasts and tourists who were appealing to the forest department to introduce online ticket booking system for safari in the Nagarahole national park. All wildlife enthusiasts and tourists wishing and requesting the forest department to begin online ticket booking system for safari in the Nagarahole national park would be happy to know that Nagarhole safari booking online is now active and fully operational. Nagarhole Safari Ticket Booking has been started to bring in more transparency as well as facilitating tourists to plan and book tickets for their safari in advance. It was a demand from the people at large, mostly from Bengaluru, Karnataka and neighbouring states like Kerala and Tamil Nadu who quite often visit the Nagarhole national park to start the online ticket booking system. Nagarhole National Park  Nagarahole (or Nagarhole) name is derived from a windy river named Nagara Ho

Calangute Panchayat House Tax Payment

Calangute Panchayat House Tax Payment MAPUSA: The Calangute Panchayat launched its website www.calangutepanchayat.com for providing online services to the people of the village. Calangute Panchayat was launched by MLA Michael Lobo in presence of Sarpanch Anthony Menezes, Panchas and HDFC bank officials. With www.calangutepanchayat.com , citizens of Calangute can now download different forms, track stray cattle and garbage collection along with making online payments such as pay house tax Calangute . Sarpanch Anthony Menezes said that now people can pay Calangute house tax online even if they are outside India. All forms that are needed can be downloaded from the official website of Calangute Panchayat and submitted. Manezes also informed “Mini chips will be inserted in cattle's body so that they can be tracked easily. The cattle registration with its owner details would be done with the Calangute panchayat . Thus owners could track their cattle and people can also identify a

JKPDD Bill Sahuliyat Payment, Jammu and Kashmir Electricity Bill Payment

JKPDD Bill Sahuliyat Payment, Jammu and Kashmir Electricity Bill Payment How to Pay JKPDD Electricity Bill Otnline in Jammu and Kashmir? Power Development Department (PDD) is one of the Department of Jammu & Kashmir State Government which takes care for all functions related to transmission and distribution of electric power in the state. The generation sector is looked after by J&K State Power Development Corporation (JKSPDC), which was carved out of PDD in the year 1995. Jammu and Kashmir State comprises of three geographically and climatically distinct regions viz; Arctic cold desert areas of Ladakh, temperate Kashmir Valley and subtropical region of Jammu. Pay Electricity Bill Using JKPDD Website Visit the official website of JKPDD here - http://www.jkpdd.net/ Under Customer Services at the left of the screen, hover your mouse on Bill Payment link and click Make Payment. This url opens - https://www.billsahuliyat.jkpdd.net/ You can quickly pay electricity bill online Jammu