National Pension Scheme (NPS) ForIndividuals (Non Government)
Age Limit: 18-60 years. 2 Types: Tier 1 & Tier 2
NPS Tier I (With Tax Advantage)
– Where To Open: Banks, Post Offices. Registration with ID, Address Proof, 2 Photos.
– Minimum Contribution At A Time: ` 500 (On Account Opening And Thereafter).
– Minimum Yearly Contribution: ` 6,000.
– Maximum Limit: None.
– Tax Deduction: ` 200,000 (150,000 U/S 80CCE And ` 50,000 U/S 80CCD).
– Portfolio: Mix Of Equity (15%), Govt. & Corporate Bonds / Fixed Deposits / Liquid Funds (85%). Managed By SBI / UTI / LIC / ICICI PFMs etc. Fund
Management Fee: 0.01% of Net Assets Managed. o No Assured Returns.
– Premature Withdrawal: Before attaining 60 Years’ Age, At Least 80% Of The Accumulated Value To Be Reinvested In Specified Annuity Schemes.
– Maturity: At 60 Years Age, At Least 40% To Be Reinvested In Specified Annuity Schemes (Monthly Income Schemes). NPS Corpus up to ` 2 lakhs is allowed to be fully withdrawn. In Case Of Death, 100% (Accumulated Value) Paid To The Nominee.
– Monthly Pension After Retirement: To the Person/ Spouse/ Dependent Parents Depending On The Chosen Annuity Scheme.
NPS Tier II (No Tax Advantage)
– Where To Open: Banks, Post Offices. Registration with ID, Address Proof, 2 Photos.
– Bank A/c: Mandatory.
– Minimum Contribution: At The Time Of Account Opening: ` 1000. o Minimum Balance: At The End Of Each Financial Year: ` 2000.
– Minimum Contribution At A Time: ` 250. o Minimum Yearly Contribution: ` 250.
– Maximum Limit: None.
– Tax Deduction: None.
– Portfolio: Mix Of Equity, Govt.Corporate Bonds, Fixed Deposits, Liquid Funds. Fund Management Fee: 0.01% of Net Assets Managed.
– Portfolio Mix: At Your Choice- Equity (Up To 50%), Corporate Bonds (Up To 100%), Govt. Securities (Up To 100%), Automatic (Calculated By The System Based On Your Age).
– Portfolio Managers (PFMs): Choice Of SBI / UTI / LIC, ICICI PFMs etc.
– Withdrawal: Any Time, Any Amount Subject To A Minimum Balance Of ` 2000 At The End Of Any Financial Year.
– No Assured Returns.