Have a PPF or SSY account? Don’t miss April 5 — Here’s why

April 5 is a crucial date for Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) investors, as it determines whether your deposit starts earning interest from April or only from the next month. If you invest on or before April 5, your full amount is considered for April’s interest calculation. Miss it by even a day, and the amount deposited will not earn any interest for April, reducing your overall annual returns.

For those investing up to Rs 1.5 lakh, the impact may appear small initially - around Rs 888 in a year but over time, this can add up to more than Rs 1.23 lakh in completely tax-free gains. In long-term investing, timing like this can quietly make a significant difference.

April 5 rule explained

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PPF follows a simple but strict rule:

• Interest is calculated on the lowest balance between the 5th and month-end

This means:

• Deposit on or before April 5 - full amount earns interest for April
• Deposit after April 5 - no interest for April on that amount

So even if you invest the same money, a one-day delay can cost you a full month’s return.

Rs 1.5 lakh example

Here’s how timing impacts your returns:

• Invest before April 5
  
  Interest at 7.1 per cent - Rs 10,650 in a year
• Invest after April 5
  
  Interest for 11 months - Rs 9,762.50
• Difference - nearly Rs 888 lost in one year

Long-term impact

If you follow the April 1–5 strategy every year:

• Over 15 years, you can earn over Rs 1,23,610 extra
• This entire amount is tax-free

That is the power of compounding working in your favour - simply because you invested early.

PPF interest rate unchanged at 7.1%

The government has kept the PPF interest rate unchanged at 7.1 per cent for the April–June 2026 quarter.

This continued stability makes PPF one of the most dependable long-term savings options, especially for conservative investors.

New Tax Regime: Should you still invest in PPF and SSY?

Even if you have opted for the new tax regime and do not get Section 80C benefits, PPF and SSY remain attractive because:

• Interest earned is fully tax-free
• Maturity amount is fully tax-free

Both schemes fall under the EEE (Exempt-Exempt-Exempt) category, making them among the few completely tax-efficient investments available.

If you invest monthly:

• Deposit before the 5th of every month
• Ensure your money earns interest for that month

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana continues to offer higher interest:

• 8.2 per cent interest rate (April–June 2026)
• Fully tax-free returns

Key details:

• Available for girl children below 10 years
• 21-year maturity period
• Contributions required for 15 years only

Lump sum vs monthly investment

If you are planning your investment, a lump sum deposit made on or before April 5 remains the most effective strategy, as it ensures your entire amount earns interest for the full financial year.