How timely PPF, SSY, and NPS contributions can maximise returns

Timing is everything when it comes to long-term savings. Whether you are investing in a Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), or National Pension System (NPS), making contributions early in the financial year can significantly boost your returns. These schemes calculate interest and benefits based on the timing of deposits, so even a delay of a few weeks can reduce the amount of interest earned for the year.

From the next financial year, it is important to make your deposit before April 5, 2026, rather than postponing it until March 2027. For instance, if you have ₹1.5 lakh to invest in a PPF account and you deposit it on April 20, 2026, you will miss out on interest for part of the financial year. Since PPF interest is calculated on monthly balances and the accounting year begins on April 1, a late deposit will earn interest for only 11 months. At the current rate of 7.1%, this would amount to ₹9,762.50 for FY2026-27.

Timely contributions are essential for parents who are saving through the SSY. In addition to keeping the account active, deposits of ₹250 or more maximise interest over the course of the 21-year term. The cost of reactivating a defaulted account is ₹50 for each year that it is skipped, which further lowers net returns.

The National Pension System (NPS) combines market-linked growth with tax benefits under Sections 80C and 80CCD(1B). Regular contributions before March 31 ensure you fully utilise your tax deductions while giving your retirement corpus more time to grow. This deduction is available only to those who have decided to go with the old tax regime.

Here are some tips for investors to maximise returns

• Making contributions at the start of the financial year helps compounding work its magic.

• Avoid branch queues, most banks allow PPF and SSY deposits via net banking or mobile apps.

• Keep a record to ensure all required deposits are made to maintain active status.

• Consider spreading your NPS contributions over the year instead of waiting for the deadline to maximise growth.