PPF Calculator: This trick will help you maximise your Public Provident Fund return

PPF Calculator: Public Provident Fund or PPF is one of the most preferred long-term investment tools among investors who have low risk profile. Currently, PPF interest rate is 7.1 per cent as the central government left the small saving schemes' interest rate unchanged. So, the current PPF interest rate of 7.1 per cent is still much higher than other risk-free assured return investment tools. Hence, like earlier, PPF is expected to remain the most preferred choice among the earning individuals for risk-free long-term investment. However, there are some important PPF rules that help an investor get more returns.

Speaking on how one can maximise one's PPF interest; SEBI registered tax and investment expert Jitendra Solanki said, "PPF interest rate is calculated on the basis of the minimum amount left in one's PPF Account from 5th of the month to the last date of that month. So, if a PPF account holder makes ECS in the PPF account from 1st to 4th day of the month, then the PPF account holder will be given interest of that month also on the money deposited." So, it is advisable for all PPF account holders to invest in PPF accounts from 1st to 4th of that month and get interest on the money deposited for that month too.

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The PPF rule allows you to open a PPF account in the name of your wife. But, in that case, you won't be able to claim income tax benefit on the PPF investment made in your wife's account after reaching your Rs 1.5 lakh annual limit. But, the PPF rule allows you to earn tax-free PPF interest in your wife's account as it is free from income tax.

On how income tax calculator works after PPF account opening in the name of the wife, Manikaran Singhal, Founder at goodmoneying.com said, "If an earning individual invests in wife's PPF account, the source of investment would continue to remain with the husband and the PPF interest earned in wife's PPF account will get clubbed with husband's income too. But, the PPF interest is income tax exempted and in that case even if the wife's PPF interest earned during the year is clubbed with husband's income, it will remain income tax exempted."