One can deposit more than 2 times in a particular month to a PPF account. Having said that, people do as much pooling of money as possible to build a huge corpus. However, there is a stipulated time frame for PPF investment too. A minimum subscription of Rs.500 and maximum subscription of Rs.1, 50,000 can be made up in lumpsum or over a span of 12 installments every annul year. Not more than 12 times can be obliged over a year’s times.
As a tax saver investment instrument, PPF qualifies really well as number 1.
The amount deposit limit of a PPF account cannot be violated, considering the benefits it endows upon.
The interest accruing for the year will be accounted for the amount in which the PPF is due i.e. before the 5th of every month. That means you can get 8.7% of interest for the round year. For this you need to deposit a lumpsum amount before the 5th of the April, every year. For the total amount of Rs.1,50,000 accruing before the month of April, you get close to an amount i.e 13,050. If the amount is much smaller, then the interest will change proportionately.
It is a constant battle of thought about the savings that go into a PPF account. It is nothing too great as a sum of money but it does have an impact at the end of the tenure. Small bites together make a full cake. Consider this calculation: if interest is estimated every month on the lowest balances in the PPF account between the 5th and the last day of the month.
PPF is an accumulated amount of money which accrues little interest to itself, every month. A few notes can turn into stacks of money one day. PPF is a long term option because it compounds well.
Also Read: What are the Interest Rates for SBI PPF ?