In this post we will review PPF Investment Period and probable questions that can come to the mind of a potential PPF Investor. All questions will be related to Investment on PPF.
In any investment plan, a user needs to know the minimum and maximum investment that he/she can make to get better profits and better tax benefits. This post showcases the insight overview about PPF Investment Period in all possible combinations, so that by the end of reading this post, majority of your PPF Related Queries will be answered. Just in case you feel that your one important question was missed, feel free to write in the comments section, I will answer them.
PPF Investment Period
Now let’s see a series of question & answers related to PPF Investment Period that can benefit a ppf investor
Q1. PPF Investment Period
The PPF Investment Period or also called as the PPF Deposit Period is fixed at 15 years minimum and the ppf investment period can be extended in a cap of 5 years each after the completion of 15 years. If you are planning to invest in ppf account then the end use can be for your son / daughter higher studies, marriage, potential house purchase, pension purpose and much more. However keep in mind that if you are planning to invest in ppf for a short term purpose and withdraw then I would suggest you to make a balanced investment in ppf and nsc or any other short term benefit scheme. Hence I would suggest you to make sure, when investment is made in PPF, then it should be for a long term plans as suggested above.
Q2. PPF Investment Per Year
The investment that can be made in PPF Account is 1,50,000 INR as per the ppf maximum investment limit in a year and the ppf minimum investment contribution per year is at 500 INR.
Q3. PPF Investment for Minor Child
The ppf investment for a minor child can start as early as 2-3 years and un till 18 years. Because after that its a Major PPF Account, that’s when you plan to make some significant savings for your child so that it helps the child future be more secure both in terms of marriage / studies for a girl child.
Q4. Best Time for PPF Investment
The best time for PPF Investment is another important topic that helps users get the best benefit and maximum returns from investing in PPF. According to PPF Rules the Best Time for PPF Investment is between April 1st – April 5th of any financial year and also Best PPF Investment for Child
Q5. PPF Investment Monthly or Yearly
The PPF Investment can be spread across the entire year. However, its important to know which type of investment in ppf will yield better returns from the account. Based on the PPF rules, its clear that when a user makes a one time investment the advantage is new more thousands as compared to PPF Investment on a monthly basis. As per the math for a investment of 1,50,000 INR for a year below table clearly explains the difference in interest rate earned based on yearly and monthly investment. The difference is around 4567 INR which will keep on adding to a huge money by the nd of 15 years. Hence my suggestion is make sure you plan to invest in ppf during the beginning of the year.
|Sl No||Year||Investment||Amount of Deposit||Interest||Interest Earned||Balance at Year End|
|1||2015||One Time Investment
1st – 5th of April
1st – 5th Every Month
Q 6. PPF Investment Strategy
Investing in PPF is one part of the game, but strategic investment into ppf is a major part of the game. Hence PPF Investment Strategy is something we need to master so that we can make the best utilization of our money. >>> PPF Investment Strategy <<< has three best ways which every user needs to follow so that best benefits can be obtained.
Q7. PPF Investment in Post Office
Many users have been asking if they can invest in post office for PPF. Well, there are only two options if you have a SBI and related banks then plain simple solution, just invest in State Bank of India as compared to Post Office. If you are from a place where you have only post office then try simply investing into post office for your ppf account. Base line I would not recommend any user / new user to open a ppf account in post office as long as you don’t have a SBI and its subsidiary banks in and around the place you stay.