PPF Investment Hack: The Public Provident Fund (PPF) is one of the most popular, safe, and tax-saving investment options in India. The lock-in period of 15 years and attractive interest rate make it an excellent option for the long term. But, do you know that when you deposit money in PPF can make a big difference to your overall returns? Yes, by keeping in mind just one date of the month, you can earn additional interest of thousands of rupees. Let's know the complete math of this '5 dates' trick of PPF.

How is interest calculated on PPF?

First of all, it is important to understand how interest is calculated on the PPF account.

Interest on PPF is compounded annually, but it is calculated every month.

Interest is calculated on the lowest balance present in the account between the 5th of the month and the last date of the month.

The monthly interest for the entire year is added and credited to your PPF account at the end of the financial year (31st March).

What is the '5th' trick?

The rule is simple, if you deposit money in your PPF account on or before the 5th of the month, then that deposit amount will also be included for calculating the interest of that month. But, if you deposit money after the 5th (i.e. on or after the 6th), then that deposit amount will not be included in calculating the interest of that month. Interest on it will start accruing after the 5th of the next month.

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