Be An Early Bird
August 2, 2014 Leave a comment
There is a time and place for everything.And there’s nothing much to be gained by rushing to do everything irrespective of its importance.But in the case of the PPF,it pays to be an early bird.Literally.
Interests are calculated on the basis of the balance on the 5th of every month in your PPF acount.So if you plan on depositing money into your account in any given month,try to do so before the 5th to pick up a little more interest.
And if you can manage to write the 1 lac cheque on the 1st of April,do so.If you make the maximum contribution on the 1st of April every year,you will take away approximately 2.5 lacs extra in interest at maturity. Taxfree. Risk free.
wealthymatters 