PPF is a guaranteed return savings scheme established by the Govt. of India with 15 years maturity period. But did you know?
1. PPF Returns are assured, but floating (can be changed every quarter) and amount invested by 5th of the month receives interest for the month.
2. Whenever the account is opened, the maturity date is calculated 15 years from the start of the next financial year.
So, if you open an account on 31st March 2022, the date of maturity would be 15 years from the start of next financial year.
i.e, 1st April 2022 + 15 Years = 1st April 2037
Now, what if you open the account just a day later, that is on 1st of April 2022
The date of maturity would be 15 years from the start of next financial year. i.e. 1st April 2023 + 15 Years = 1st April 2038 (here it becomes a 16 years maturity product)
So, for a difference of just one day in account opening the Date of Maturity is delayed by 1 Year.
Now that you know, plan accordingly. Informed actions related to your personal finance make your money work for you.