New Delhi: 

Public Provident Fund (PPF) account holders planning to invest lumpsum in their account in the financial year 2025-26, should deposit the amount into the account before April 5 if they wish to enjoy higher interest earnings on their investment. Currently, the PPF annual interest rate stands at 7.1 per cent.

Let’s see how it is beneficial if you are planning to invest in your PPF account for the financial year 2025-26 before 5th April. The interest in a PPF account is determined on the minimum balance between the 5th of every month and the last day of the month.

If a PPF investor makes a lump sum investment before April 5, the beneficiary will be entitled to get interest for the entire financial year. However, if an individual deposits money on or after 6th April, he/she will not be entitled to receive interest for only 11 months.

PPF account holders can enjoy the benefits of compounding The long-term scheme has a lock-in period of 15 years. If a person invests Rs 1 lakh every year between 1st and 5th April, the beneficiary will be entitled to get Rs 40,68,209 after 15 years, of which Rs 18,18,209 will be interest. But if you invest late every year, the maturity amount will be less depending upon the time period.

If a person chooses to opt for a monthly deposit option and invests Rs 12,500 every month, the maturity amount after 15 years will be Rs 39,44,599. It may be noted that lumpsum investment is always more beneficial as it ensures more returns.

If a person deposits Rs 1 lakh before April 5, 2025 in a PPF account, the beneficiary will get an annual interest of Rs 7,100 at the interest rate of 7.1%. But if the money is deposited on or after April 6, only 11 months’ interest will be credited, i.e. Rs 6,508.

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