Since my last post was on PPF, I think this detail may be of a lot of help for folks looking to invest via PPF.
As per PPF laws
Interest in your PPF account is calculated on the lowest balance between the close of the fifth day and the last day of every month and is credited to the account at the end of each financial year i.e., on 31st March. So if you invest by the 5th of the month, you will be eligible to interest for the full month in which you are investing
What this means is that if you invest by the 5th of a month, you will get full interest for the month.
If you have a lumpsum and if you invest it before 5th April, you will get the interest for the full year.
Thoughts?
Some folks even mention of doing a partial withdrawal a portion from the PPF every year from the 7th year onwards and reinvest it back. This way they don't put new cash.
I will however not advice this because I think one should look PPF for a long term savings (for retirement or child investment)
As per PPF laws
Interest in your PPF account is calculated on the lowest balance between the close of the fifth day and the last day of every month and is credited to the account at the end of each financial year i.e., on 31st March. So if you invest by the 5th of the month, you will be eligible to interest for the full month in which you are investing
What this means is that if you invest by the 5th of a month, you will get full interest for the month.
If you have a lumpsum and if you invest it before 5th April, you will get the interest for the full year.
Thoughts?
Some folks even mention of doing a partial withdrawal a portion from the PPF every year from the 7th year onwards and reinvest it back. This way they don't put new cash.
I will however not advice this because I think one should look PPF for a long term savings (for retirement or child investment)
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