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I have read on wall that it would be better if I invest money in PPF then deposit the money before 5th of the month.

May I know if there is any difference if I invest money in October 2012 or April 2013? Coz in some place I was seeing that the calculation is based on FY which starts April. I am not so clear so need your advice.

8 Answers

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1 Ashal Jauhari September 11, 2012 at 6:22 pm

Dear Santtu, for the current FY, now 1st to 5th october is your possible best shot. From next FY, make it a habit to invest in a single shot between 1st to 5th April to earn full FY’s interest.

Thanks

Ashal

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2 santtu September 11, 2012 at 6:25 pm

Alright Thanks……

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3 Rajan Arora September 11, 2012 at 7:21 pm

Dear Ashal,

What does that mean 1st to 5th october is the right time to invest for this fin year and from next 1st to 5th April.

Please explain?

Thanks

Rajan

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4 Manish Chauhan September 12, 2012 at 8:56 am

Rajan

PPF interest is calculated monthly on the lowest balance between the end of the 5th day and last day of month, however the total interest in the year is added back to PPF only at the year-end. So earliar is always always better. read more on this at http://www.jagoinvestor.com/2012/02/how-ppf-interest-is-calculated-video.html

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5 Rajan Arora September 12, 2012 at 2:05 pm

Thanks Manish it make sense now. Also Can I add my PPF account to my HDFC netbanking and transfer online.

Please advise.

Thanks

Rajan

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6 Manish Chauhan September 12, 2012 at 5:43 pm

Yes, but only if your PPF is in SBI !

Reply

7 Rajan Arora September 12, 2012 at 5:58 pm

Yes, it is in SBI.

Thanks

Reply

8 justgrowmymoney September 12, 2012 at 7:04 pm

Do Transfer online.

The 1st to 5th of each month is the right time to move funds to PPF account. Having said that if one is not able to do bulk deposits it is still okay to consider PPF like a SIP and invest some amount each month.That way your corpus gets built.

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