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Why You Can’t Make Make More Than 2 PPF Deposits In A Month

Adhil Shetty

Question: I have a PPF account. I want to know if it’s allowed to make more than two deposits in a month to it. – B. Varma

Answer: There is no monthly restriction on the number of times you can make a deposit to your Public Provident Fund account. You can make more than two deposits in a month. However, there’s an annual limit to the number of deposits you can make — which is 12 times in a financial year.

Also, you must deposit no more than Rs. 1.5 lakh in a financial year. Trying to deposit more than this limit will lead to a failed transaction. If you managed to deposit above this limit in some way, the deposit over the limit will not earn any interest.

The interest on your deposit is calculated on the fifth day of every month. So, if you plan to deposit more than once in a month in your PPF account, then do it before the fifth to get full the interest benefit.

Here are some articles on PPF that you might find useful:

5 Ways To Make The Most Of Your PPF Account

Ways Your PPF Account Can Become Idle

If you have any other personal finance queries, reach out to me on Twitter @adhilshetty and I’ll be happy to answer them for you.