2 Replies to “How interest is calculated on PPF account?”

  1. See, interest on amount deposited during the year is calculated based on numbers of months till March. Any day deposit from 1st to 5th is considered as full month. So in your example x amt of option 1 will attract 12 months interest but x amt of 2 will get only 1 month interest.
    Better to deposit on 1st April. FD option is not a good idea imo as fd interest is taxable.

  2. Deposit on or before 5th of any month to get interest for that month. If you are depositing by cheque , deposit on 2nd or 3rd. Cash can be deposited on or before 5th.

    By depositing by 5th april , you get interest for 12 months

    Rs 70,000 gets you interest of Rs 5600 on 31 st March

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