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PPF is considered a decent investment avenue. However, you should be mindful of the timing of investments in PPF. Read further to understand details
If you are planning to invest in Public Provident Fund (PPF) in the financial year to save tax, it's advisable to do it before fifth of any month. The reason being- if you deposit money early in the month you would get the advantage of interest added on the contribution before fifth of the month. Additionally, you can invest a lump sum on or before April 5 of a year in order to get the interest for the whole year.
The answer is that the interest rate offered on PPF accounts — currently 7.1 percent — is calculated on the minimum balance in the account between the fifth day of the month and the last day of the month.