Invest by the 5th of a month to optimise return on PPF, say experts

A Public Provident Fund (PPF) investment offers a tax-free return of 7.1 per cent. Among government-backed fixed-income schemes, only Employee’s Provident Fund (or EPF, which gives 8.1 per cent) and Sukanya Samriddhi Yojana (SSY, which gives 7.6 per cent) offer higher tax-free returns. One significant point investors must remember while investing in PPF is that they must put in the money at the right time to maximise the return they earn from it.

How interest is calculated

An investor can deposit up to Rs 1.5 lakh in a PPF account each financial year. The minimum one can invest is Rs 500 per