Union Bank PPF Account Interest Rates 2024

For all those looking for a long-term investment plus tax-saving option, the Union Bank of India PPF account can be an excellent scheme. You can even opt for partial withdrawals under this facility from the 5th financial year onwards. For more details regarding this bank offering, keep reading this comprehensive guide on Union Bank PPF accounts. 

Here’s a table depicting some particulars about a UBI PPF account:

What is a Union Bank PPF Account?

The Union Bank of India Public Provident Fund is a savings instrument backed by the Central Government of India. 

You can open a PPF account linked with your existing UBI bank account either online or by visiting any branch. After being enrolled under this scheme, you can avail income tax deductions of up to ₹1.5 lakhs each year simply by depositing funds in this account. 

Key Features of Union Bank Public Provident Fund Account

Here you can go through the main features of a Union Bank of India PPF account:

1. The bank allows you to deposit money to your PPF account only 12 times a year.
2. In a fiscal year, you should contribute at least ₹500 to your PPF account to keep it active. The maximum deposit limit for a year is ₹1.5 lakhs.
3. As per Section 80C of the IT Act, you are not required to pay any tax on the interest earned through your PPF investment.
4. A PPF account matures in 15 years. However, you may opt for partial withdrawals from the fifth year.
5. After maturity, you can extend your PPF account’s tenure by a block of 5 years. During this time even if you do not make further deposits, then also you continue gaining interest based on the corpus. 
6. You can apply for a loan against your Union Bank of India PPF account between its third and sixth years. 

Union Bank of India PPF Interest Rates 2024

The RBI has mandated that all banks and post office branches providing PPF facilities should disburse the same interest rate. Here’s a quick overview of the interest rates applicable to the UBI customers:

How to Open a PPF Account in Union Bank of India Online?

Here you can refer to the steps involved in online PPF account opening in Union Bank of India:

• Step 1: Access your existing Union Bank account by visiting the official website. For this, you have to enter the correct login credentials.
• Step 2: Once the access is granted, continue by clicking on the ‘Deposit’ tab followed by ‘PPF Account’.
• Step 3: Here you will see an option reading ‘PPF Account and Remittances’. Click on it and after that again select ‘PPF account’.
• Step 4: Once again you will be asked to log in by entering the same login info. 
• Step 5: After completing the sign-in procedure, you will get a half-filled application form. Fill out the rest of it to provide important nomination and address details.
• Step 6: To proceed to the ‘Pay’ button, now check all the ‘Terms and Conditions’ boxes.
• Step 7: Deposit the first instalment in your PPF account via net banking.

By following this step-by-step guide, you can successfully create a PPF account with the Union Bank of India. Now, you can deposit monthly and track the transactions online till the time you wish to keep the account active.

How to Open a PPF Account in Union Bank of India Offline?

Besides the Union Bank PPF account opening online method, you can also opt for the conventional way by visiting the home branch. Here’s how:

• Step 1: Visit the nearest Union Bank of India branch and get in touch with the help desk personnel.
• Step 2: Procure the new PPF opening form from an official. You can also download the same by utilising the bank’s internet banking service (if activated for your savings or current account).
• Step 3: Fill it out and submit the form along with all the necessary documents. 

Documents Required to Open a PPF Account in Union Bank of India

Very few documents are needed to open a Union Bank of India PPF account. As you already maintain an account with the bank, most of your details are already on record. The major requirements are:

1. Duly filled PPF opening form
2. ID proof documents (PAN card, passport, Aadhaar card, driving licence)
3. Address proof documents (electricity bill, ration card, telephone bill) 
4. Pay-in slip

Eligibility to Open a PPF Account in Union Bank of India

Considering you are about to open a new PPF account, these are some eligibility criteria you must be aware of:

1. Individuals must singly apply for a PPF account. Union Bank of India does not accept a joint PPF account opening request.
2. You can only maintain one PPF account in your name. 
3. Minor PPF accounts are accepted only when one of their natural or legal guardians takes the responsibility to maintain such accounts.

Union Bank of India PPF Withdrawal Rules

The Union Bank has stipulated certain regulations for all its PPF customers. Here you can learn about them:

1. You can claim partial withdrawals anytime after your PPF account has aged more than 5 years. 
2. The 5-year calculation begins from the end of the financial year on which you decided to open the PPF. 
3. You cannot withdraw more than 50% of the accrued PPF wealth till the end of the 4th year from the account opening date. 

To apply for a PPF withdrawal, first, you must fill out the Form 2. By submitting it to the concerned branch, you can specify your desired mode of payment. 

Union Bank of India PPF Formula and Calculation

You can use an online calculator to determine the maturity value of your Union Bank of India PPF account. The process is very simple as it asks you to specify only two details – yearly investment and estimated time. 

However, you can also calculate the returns manually by implementing this formula:

F = P [({(1+i) ^n}-1)/i]

In the above equation, the variable F represents your PPF account’s maturity value. Whereas, P, n and i denote annual investments, rate of interest and total number of years respectively. Let us understand this formula with the help of an example. 

Suppose you want to invest ₹1.5 lakhs in the Union Bank of India PPF scheme for 15 years. 

As per the formula, the maturity value of such an investment can be calculated. 

F = 1,50,000  [({(1+7.1) ^15}-1)/7.1] = ₹40,68,209.

How to Use a Union Bank of India PPF Calculator?

If you want to compute your PPF maturity balance in an error-free manner, make sure to follow this two-step process:

• Step 1: Open an online PPF calculator and type in your intended yearly investment amount. You can also use the slider to adjust the investment value.
• Step 2: Mention the time for which you wish to stay invested.

After fetching the above-mentioned inputs, the calculator will automatically display your cumulative deposit amount, total interest earned and finally the end value after your PPF account matures. 

Steps to Access Union Bank of India PPF Passbook Online

The Union Bank of India has introduced the mPassbook, a mobile application that simplifies checking your PPF passbook details online. 

Here you can see the steps to activate and start using your virtual passbook:

• Step 1: Download the Union Bank mPassbook app from either the App Store or Play Store.
• Step 2: After selecting a language you will be asked to enter your account-registered phone number. Enter it to get the login OTP.
• Step 3: Set a 4-digit MPIN to continue.
• Step 4: Now, you can see the PPF passbook as your PPF account is already linked to the UBI bank account associated with your phone number. 

Steps to Check Union Bank of India PPF Balance 

These are a few ways to check the account balance in your Union Bank of India PPF account:

1. Via Net Banking

• Step 1: Visit the official website of Union Bank of India and click on ‘Internet Banking’.
• Step 2: Select the option ‘Retail Login’.
• Step 3: Enter the user credentials to complete the login procedure.
• Step 4: Select your PPF account to see the account balance.

2. Via Whatsapp Banking

• Step 1: Send a ‘Hello’ to the official banking number of UBI – 9666606060. Next, you will receive a set of options.
• Step 2: Select an appropriate action to know the PPF account balance.

After this, you can see the account balance in the same Whatsapp chat. 

3. Via SMS 

• Step 1: Send a message by typing ‘UBAL’ <space> ‘Account number’ to 09223008486.
• Step 2: You receive a response from the bank’s end along with the available balance. 

How to Download Union Bank of India PPF Account Statement?

Any Union Bank customer can check their PPF account statement and also download it by following these steps:

• Step 1: Activate the net banking facility for your PPF-linked bank account. 
• Step 2: Log in to this account using user ID and password.
• Step 3: To see the transactions click on ‘View Statement’ after selecting your PPF account. You may even save it on your smartphone by clicking on the ‘Download’ button. 

Extension of Union Bank of India PPF Account 

Here are some noteworthy pointers, especially, if you wish to extend your PPF tenure:

1. While opening a PPF account with UBI, you must agree to an initial lock-in period of 15 years. 
2. Before these 15 years, you cannot fully withdraw the accumulated corpus.
3. After 15 years you can extend the tenure by a block of 5 years. 
4. During the extended period, you can simply retain the corpus and enjoy the interest earnings as applicable even without contributing further. 

Things to Note While Opening Union Bank of India PPF Account

As you are planning to open a Union Bank PPF account, these are some additional pointers to keep in mind:

1. For account opening in case of a minor, you must visit the concerned branch accompanied by the intended account holder.
2. The Union Bank of India does not allow NRIs to deposit in a PPF account.
3. You can add up to 4 nominees to a PPF account.
4. To collect the physical passbook, you have to visit the home branch. 

How to Transfer Union Bank of India PPF Account?

Kindly follow these steps to transfer your PPF to some other bank or post office:

• Step 1: Frame a letter stating the reason for the transfer.
• Step 2: In the application mindfully include all these details – IFSC code, branch name and address of the Union Bank as well as the branch specifications of the institution where you want to shift your account. 
• Step 3: Sign the application letter and submit it to the current branch. 

Loan Against Union Bank of India PPF

After 5 years since the initial investment, you can avail a loan of up to 25% of the PPF money till the time one year is left from the date of expiry. Most importantly, to get the loan approved, you must fill out Form 2 and submit it to a designated official. 

Final Word

Opening a Union Bank of India PPF account is an excellent step forward towards building a secure retirement life. Also, it comes with many value-added features like a loan against PPF and partial withdrawal facilities that make wealth management much easier. 

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Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.