Now, we will delve into the best way to invest money in PPF!
It is said that the right time for a PPF investment is during the beginning of a year. This is because an individual opting to invest in PPF in this manner will earn interest on his or her deposits for a whole year.
In addition to this, one must keep in mind that the minimum monthly balance between the last and fifth day of the month forms the basis for calculating the Public Provident Fund's interest. Therefore, if you are planning to invest in PPF on a monthly basis, it would be best to invest before the 5th of each month.
An Overview on PPF Withdrawal
An investor can opt for a complete withdrawal of balance in the PPF account after it gets matured, i.e., after 15 years get completed. So, once this duration is complete, the total outstanding amount to an investor’s credit is available for withdrawal along with its accrued interest. Additionally, one is also free to close the account at this point.
However, investors must bear in mind that if they want to make a withdrawal before a tenure of 15 years, they can opt for partial withdrawals after the completion of 6 years.
A premature withdrawal is permissible for a maximum limit of 50% of the amount present in an investor’s account at the end of the 4th year (preceding the year when the withdrawal takes place or at the preceding year’s end, whichever is lower). Furthermore, in a given financial year, withdrawals can be made only once.
On that note, this guide on how to invest in PPF comes to an end. We hope that you now know the ins and outs of opening a PPF account.