What Is Best Time Open Public Provident Fund (PPF)

 

In the mind every one have the question that what is the best time open public provident fund. PPF stands for Public Provident Fund and is an excellent tax saving tool for many people in India.  In some of the families, whenever, a new child is born, the family members get a PPF account for the child.  Such is the popularity of PPF.  It offers a higher rate of interest as well as the contributions to PPF account are fully exempted from income tax.

best time open public provident fund

 

When is the best time open public provident fund ?

You can open a PPF account round the year and there is no restriction on when you can get a PPF account opened.  However, the best time open public provident fund (PPF) account is within 01st to 05th of April, in a given fiscal year.  If you fail to get an account opened within this duration, you can choose to open within 01st to 05th of any month.

This happens because, if you open an account within 01st to 05th of April, the account opening is considered in the current year.  If you open the account after 05th of April, the account opened status shifts to the next fiscal year.

Let’s take an example to understand this better.  If you opened a PPF account within 01st to 05th April 2014, your account would mature on March 31st, 2030.  However, if you opened the account on 08th April, 2014, it would mature on March 31st, 2031.

Now you can see how opening a PPF account within 01st to 05th April impacts the entire process.  You get the maturity one year earlier if your open the account within 01st to 05th April.

When is the best time to deposit into your PPF Account?

If you already have a working PPF account, the best time to deposit money to your PPF account is within 01st to 05th date of every month.  As a matter of fact, the considerations for PPF are between 01st of April to 31st of March of a fiscal year.

Do not Delay; open a PPF Account as early as possible!

The sooner you start with, the better it is.  PPF account is a sustained investment scheme in which you save your hard earned money and get a decent rate of interest along with complete tax benefits.  If you have started working, you should get a PPF account as early as possible for yourself.

This applies especially for those who are working in private sector.  If you open a PPF account at the age of 25, by the time you turn 40, you would have lump sum money to do a number of things in your life.  If you are still working at 40, you can again reinvest this lump sum amount in some other scheme or continue with the same PPF account in multiple of 5 years. You can read more on Public Provident Fund PPF FAQ.

As the saying goes, ‘The sooner, the better’ aptly applies to opening a PPF account as well.  Money saved is money earned.  The sooner you start saving and investing, the better future your would be able to secure for yourself as well as for your family.

If you have any query about what is the best time open public provident fund, So feel free to ask the question.

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