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PPF Golden Rule- PPF is a great savings scheme. Now 7.1 percent interest is being given in this scheme of Triple-E category. If you want more benefits in PPF then you must follow the ‘5 date rule’.
New Delhi. Public Provident Fund or PPF is a popular investment scheme in India. People invest in PPF for years, but most of them are not aware of a special rule that provides higher interest. This is called the ‘5 date rule’. Those who invest money in this government scheme following this golden rule, they get more interest than others. Today we will tell you in detail whether this rule works and how.
The interest deposited every month in PPF is decided on the basis of the balance in your account on the 5th of the month. This means that if you deposit the money before the 5th, you will get interest for the entire month. If you deposited the money after 5th, then you missed the interest of that month… that means loss. You deposit 10-12 thousand in PPF every month. If this amount is withdrawn after the 5th, then the interest for that month is lost. And if this continues for 15 years, you may suffer a loss of at least Rs 1 lakh.
Where do people make mistakes?
Most people deposit money on the 10th, 15th of every month or when their salary comes. They feel that money is being accumulated. Interest will also be available. But the system of PPF is different. If its timing is wrong, the interest gets deducted a little every month.
PPF is a Triple-E category scheme
PPF is a long-term savings scheme run by the Government of India. In this you can invest minimum Rs 500 to maximum Rs 1.5 lakh every year. Its lock-in period is 15 years, that is, you can withdraw the entire money only after this period.
