These two tricks give you more interest on PPF, do you know

New Delhi. Due to tax exemption, good interest and no risk of loss of money, Public Provident Fund (PPF) is a popular savings scheme. Some people get more interest than others on the money invested in PPF. It is not that the government gives them special interest, rather they invest money after understanding the PPF rules properly and get more benefits. Therefore, if you also invest after knowing the rules of PPF properly, you will also get more benefits.

PPF account can be opened in post office or any bank branch. Currently, the government is giving 7.1 percent interest on the money invested in PPF. Investing in PPF provides tax exemption of up to Rs. 1.5 lakh under Section 80C of Income Tax. A minimum of Rs. 500 and a maximum of Rs. 1,50,000 can be deposited in PPF account every year. The interest on this amount is added to the account on the last day of every financial year. You can get more interest by doing two things. Today we will tell you about them.

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Deposit the money by the 5th
If you invest money in PPF every month, then money should be deposited in PPF between 1st to 5th of every month. According to PPF rules, interest in Provident Fund account is calculated on the amount deposited in the account between the last date of the month and the 5th. You will not get any interest on the money deposited after the 5th and you will start getting interest on that amount from the next month. Therefore, money should be deposited by the 5th in any case.

This is how you can avail more benefits of compound interest
In PPF, you get compound interest on money. To get more interest on the amount deposited in PPF account, you should invest the entire amount at the beginning of the financial year. This means that whatever amount you want to invest in PPF in a year, deposit it all at once by 5th April. By doing this, you will get interest on the entire amount from the beginning of the year till the end and you will get more benefit.

Avoid Withdrawal
To get more interest from the Public Provident Account, you should avoid frequent withdrawals from the PPF account. Withdraw money only when it is very necessary. Frequent withdrawals spoil the minimum balance criteria and the person is not able to earn the desired interest amount.

Tag: interest rates, Money making tips, personal Finance, PPF Account