PPF Scheme invest before 5 april otherwise there will be loss of interest

PPF Scheme Interest Rate: The financial year 2025-25 has started. In such a situation, if you want to do financial and tax planning for this financial year, then this is a very good time. There are many investment options available in the market for tax protection. One of them is Public Provident Fund Scheme. PPF is a scheme in which you get the benefit of high interest rates along with tax saving. The date of April 5 is very important in the PPF scheme. If you miss the date of April 5, you may suffer a loss of lakhs.

Invest in PPF by 5th April

If you invest money in PPF scheme in lump sum by 5th April at the beginning of every financial year, then you get the benefit of the highest interest rate. In PPF account, interest is calculated on the 5th of every month. In such a situation, if you deposit the lump sum amount by 5th April of the beginning of every financial year, then you will get the benefit of interest for the entire month.

This is how interest is calculated

The government is giving the benefit of interest at the rate of 7.1 percent on the amount deposited in PPF account. If a person invests by the 5th of every month, he gets the benefit of full interest on the deposited amount. At the same time, if you invest after 5th, you will get the benefit of interest only on the lowest balance between 5th and 30th. In such a situation, you may suffer loss of interest that month.

Understand complete mathematics with examples

According to the PPF calculator, if you invest up to Rs 1.50 lakh in lump sum by April 5 this financial year and continue this investment for 15 years, then you will get a total of Rs 18.18 lakh as interest on the deposited amount in 15 years. At the same time, if you invest in PPF after the 5th of every month, you will get only Rs 17.95 lakh interest. In such a situation, you will incur a loss of Rs 23,188 in interest in 15 years.

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