The whole of India is now busy investing Rs.1.5 lakh in PPF and SSY before 5th of April 2024. When you must NOT invest as a lump sum?
We all know that if we invest Rs.1.5 lakh in either PPF or SSY between 1st April to 5th April, we end up earning higher interest than investing monthly or in between during the whole financial year. Just because of this, few people are so obsessed that they least bother about other important points to consider and blindly invest.
Investing Rs.1.5 Lakh in PPF and SSY before 5th April – When you must NOT invest?
Let us take an example to illustrate the difference. The current PPF interest rate is 7.1% (Post Office Savings Schemes Interest Rates April – June 2024). Let us assume that you are investing Rs.1.5 lakh every year between the 1st to 5th of April, if we assume the same interest rate of 7.1% for the whole 15 years, then after the 15th year completion, the balance will be Rs.40,68,209.
Now let us assume that instead of a yearly Rs.1.5 lakh…