The Union Bank of India PPF account is a government-backed savings deposit scheme that offers a range of benefits including high interest rate and tax benefits. This account is meant for individuals only and offers tax-free interest to customers. Union Bank of India PPF account can be opened for a minimum tenure of 15 years and can be opened at select branches of the bank across the country.
How to open Union Bank of India PPF account online?
Currently, the Union Bank of India does not provide online account opening facility for PPF accounts. You can still approach the pre-listed branches which accept applications for PPF accounts and complete the formalities to have your own account within a short time. However, if you have a savings account in Union Bank with internet banking service enabled, you may be able to download the application form and fill it up and submit it to the relevant branch.
Documentation required to open Union Bank of India PPF account
Customers have to submit minimal documents while opening a PPF account in Union Bank. The major requirements include:
- Filled in account application form.
- Identification proof such as PAN card, driving license, passport, Aadhar card, voters’ ID etc.
- Address proof such as telephone bill, ration card, electricity bill etc.
- Pay-in slip.
Union Bank of India PPF account opening form
The account opening form can be collected from the listed branches of Union Bank. The form typically consists of the following fields, though you may be required to furnish less or more information as per the latest form.
- PAN card details
- Branch name
- Initial fund value
- Debit account details
- Standing instructions
Union Bank of India PPF rules and guidelines
Major rules and guidelines governing Union Bank PPF accounts are:
- Duration of Union Bank PPF scheme: The account can be opened for a minimum tenure of 15 years, which can be stretched in segments of 5 years.
- Eligibility: Individuals can open this account, however they should ensure that this is the only PPF account in their name. Joint accounts are not permitted. Minors can have this account if natural or legal guardian backs them for it.
- Withdrawals: No withdrawal is allowed till the completion of 5th year of account inception. After the 5th year, partial withdrawals are allowed. Full withdrawal can only be made after completion of the 15th year.
- Investment limit: The minimum amount to open the account is Rs.100, however Rs.500 has to be maintained in a year to earn interests and not accrue penalties. The maximum investment limit is Rs.1.5 lakhs.
Union Bank features and benefits
Major features and benefits of Union Bank PPF accounts are:
- Loans: Loans are available after completion of first year of account but before completion of 5th year of the account. Loans in this case will be provided up to 25% of the balance at the end of 2nd year that precedes the application year for the loan.
- Tax benefits: Tax exemptions are available under Section 80C of the Income Tax Act, 1961. Interest earned from the account is tax-free.
- Nomination facility: You can nominate one or more persons for the account, however minor accounts cannot avail this facility.
Union Bank of India PPF interest rateThe present Union Bank PPF interest rate is 8.70% p.a. This interest rate is subject to revision as per time-to-time notifications from the government. The accrued interest is paid out on 31st March of every year. Interest is calculated on funds in the account till the 5th of every month.
Union Bank of India PPF calculator
PPF calculations can get tedious if you are doing it on your own. A better option is to use a PPF calculator online which gives you the option to mix-and-match combinations so that you can come up with an optimized plan. A PPF calculator will give you the maturity amount once you feed it details such as:
- Amount invested
- Subscription option including monthly, quarterly, half-yearly or yearly.
How to deposit money in your Union Bank of India PPF account?
Deposits can be made in the following ways:
- Online deposit: If you have a savings bank account with Union Bank with internet banking enabled, you may be able to make deposits online from your account.
- Offline deposit: Offline deposit can be done by going to the relevant branch of Union Bank and depositing the funds through cheque or pay-in slip available at the counter.
How to transfer your PPF account from post office to Union Bank of India?
PPF accounts used to come under the domain of post offices. However, now you can transfer your post office PPF account to Union Bank for a small fee. The process of transfer includes submitting a written request as well as transfer form to the post office. After your request has been processed, the post office will send a check to the concerned bank along with some policy documents. The process is simple and can be completed soon.
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