There are many methods of earning money from PPF and increasing its value. However, it all depend upon the individual’s financial planner. If you are already 25-35 years old and have a Public Provident Fund account, here are some tips to make sure you’re not missing out on the maximum interest that your fund can give you.
1. Use a ppf calculator to set a goal
The first thing to do is to set your target amount. This can be done by using the PPF calculator monthly. Once you have set the goal, it is important that you keep track of your savings for the entire year. This will help you achieve your target in time.
2. Invest before the 5th of every month
The first thing that you need to do is ensure that you are making monthly investments. You will get better returns by investing in the first few days of every month than in any other day. This is because banks and financial institutions make their money from interest earned on the funds that they have deposited with them. The more money they earn, the more interest they pay.
3: Invest lump sum amounts at the beginning of the financial year
The second thing that you should do is consider investing your entire PF amount at once instead of making monthly deposits throughout the year. This will help you to avoid any delays or issues which may arise due to paying a higher amount every month instead of paying it all at once. Public Provident Fund (PPF) accounts are mostly used by individuals who want to save for retirement or pay off their credit card debts. If you have no budget to start investing, then make sure that you set aside some money every month so that by June each year, you can deposit a substantial amount into your PPF account. The interest earned from this initial deposit will compound over time and help build up your savings faster than if you were only making small deposits every month. To estimate how much lump sum amount you should invest you could use a nps calculator. This will help you decide the opportunity cost of investing the lump sum amount in ppf instead of national pension system(NPS).
4. Automate addition to ppf from your online bank account
It is important that you automate the process of adding money to your PPF account from your bank account via Internet banking. You can do this by logging into your online banking platform and navigating to ‘My Account’ option where you need to click on ‘Add Money’ option. You can then choose ‘PPF’ as a beneficiary and enter the amount that you want to add into the account every month or fortnightly basis according to how much money you want him to save in his PPF account over a specific period of time (for example: Rs 1,000 per month).
5. Use online banking
Open an account in a bank with online banking so you never miss an installment. This will ensure that you get all your contributions made at regular intervals without any delay or confusion. Your bank will notify you about any change in your deposit and all payments received by them will also continue to be credited into your account automatically.
