Union Bank PPF Account is a savings-cum-tax efficient avenue sponsored by the government. It can be opened by individuals for a minimum period of 15 years at any of the UBI branches across the nation. The minimum amount that one can be deposited starts from as low as Rs. 500 to a maximum of Rs. 1,50,000. The maturity amount and interest earned on it is exempted from tax. Owing to these benefits, PPF is considered as one of the most tax-efficient and popular saving schemes in India.
Key Features of UBI PPF Account
- An attractive interest rate of 7.1% fully exempted from income tax under section 80C
- Long-term investment period 15 years develops the habit of savings in depositors
- The deposit starts from as low as Rs.500 and goes up to a maximum of Rs.1,50,000 in one financial year
- PPF deposits can be done in a maximum of 12 transactions
- A loan can be availed between the 3rd to the 6th financial year against your Union PPF deposit
- The partial withdrawal facility is available from the 5th financial year onwards
- The PPF account can be extended in a block period of 5 years after the maturity period
How to Open PPF Account in Union Bank of India?
At present, Union Bank of India does not provide the facility to open Union Bank of India PPF account online. You can still approach the authorized UBI branches which accept applications for PPF accounts and complete the formalities to open a new PPF account. However, if you are an existing customer with your savings account in Union Bank and an active internet banking service, you can download the account opening application form and submit the duly filled form to the relevant branch.
Documents needed to open a PPF account in UBI
Below given are the documents required to open a PPF account at Union Bank:
- The PPF account opening form or Form A
- A passport-size photograph
- Any address proof as per the KYC norms
- Nomination form
- Copy of your PAN (Permanent Account Number)
Important Points to Keep in Mind while Opening a UBI PPF Account
- Only one PPF account is allowed per individual
- Minimum deposit starts from Rs. 500 and maximum is 1.5 Lakhs
- A PPF account for Minors can’t be opened via online mode. You must visit any of the UBI Bank branches.
- NRIs are not allowed to open a PPF account.
- You can visit your nearest UBI Bank branch for nomination updating /change (if required).
- Joint-account holders also cannot open a PPF account online.
- To obtain the PPF account passbook, a customer must visit the branch
Union Bank of India PPF Account – Modes of Deposit
UBI PPF deposits can be made through both Online and Offline methods:
Online deposit: You must have a savings bank account with Union Bank with internet banking to make deposits online from your account.
Offline deposit: You can visit any relevant branch of Union Bank and deposit the funds through cheque or pay-in-slip available at the counter.
How to transfer Union Bank PPF Account?
PPF account transfer can be done in two ways- Either one can transfer within the same bank or Post Office and Transfer from Post office to Bank or vice versa
PPF Account Transfer to Other Bank or Post Office
- Write an application stating the reason of the transfer
- You have to mention the following details: Branch Name, Address & IFSC Code of the current branch and the branch to which it is supposed to be changed
- The application needs to be signed by the account holder
- After filling the form and signing it, submit the application to the current bank branch where the account is held
PPF Account Transfer from Post Office to Bank
- Go to your nearest post office where the account is currently held along with the PPF passbook
- Write an application regarding the transfer specifying the full address of the post office/bank’s branch where you wish to transfer your PPF account with your signature
- Your request is processed and the necessary documents are shared with the changed branch
- Subsequently, you need to submit a fresh account opening form along with all the necessary documents to open the account at the new branch/post office
- The time taken for the transfer to happen is about 30 days
Union Bank of India – Frequently Asked Questions
Ques. How is the PPF interest rate calculated?
Ans. The interest is compounded annually for PPF and is calculated every month but credited to the depositor’s account at the end of the year on the 31st of March. The
Ques. Can we have more than one Public Provident Fund (PPF) account under a single name?
Ans. No, an individual can open only one PPF account under one name.
Ques. What is the Union Bank PPF account interest rate currently?
Ans. The Union Bank PPF interest rate is 7.1%.
Ques. Can I withdraw my PPF amount before 5 years?
Ans. No. Partial withdrawals before are not allowed before the completion of five years under this scheme. Even after five years, PPF has a restriction on the withdrawal limit.
Ques. How much return can I expect on PPF after 15 years?
Ans. The depositor receives the matured amount in the PPF account after 15 years which is the principal amount invested and the interest earned on it.
Ques. Are there any conditions for partial withdrawal from the fund?
Ans. Partial withdrawals are allowed anytime after the completion of 5 years from the end of the year in which initial subscription was made.
Ques. Can I close my account after 5 years?
Ans. In case of a medical emergency / serious ailment / critical illness or higher education of the minor child, the PPF account can be closed after 5 years (Valid documents / Proof to be submitted)