Types of National Pension System Accounts – Tier 1 & Tier 2 NPS Accounts
NPS offers a subscriber the option to save for retirement as well as for emergency needs.
These are two NPS accounts Tier I and Tier II. Tier I account is used for retirement savings, Tier II account can be used for savings for emergency needs. Operating guidelines for Tier I and Tier II account are as mentioned below:
Tier I NPS Account
It is mandatory to open Tier I NPS account if you wish to join NPS
Withdrawal from this account is restricted and conditional.
You can open Tier I NPS Account with a contribution as low as Rs.500/-. To keep the Tier I NPS Account active, you need to deposit a minimum of Rs.1,000 each year.
Tier II NPS Account
Tier II NPS Account is optional and can be opened either at the time of Tier I NPS Account opening or later.
You can withdraw from this account anytime.
Tier II NPS Account can be opened with initial minimum contribution of Rs.1,000/-. There is no requirement of depositing any minimum amount each year to keep the Tier II NPS Account active.
Tier I NPS Account
It is mandatory to open Tier I NPS account if you wish to join NPS
Withdrawal from this account is restricted and conditional.
You can open Tier I NPS Account with a contribution as low as Rs.500/-. To keep the Tier I NPS Account active, you need to deposit a minimum of Rs.1,000 each year.
Tier II NPS Account
Tier II NPS Account is optional and can be opened either at the time of Tier I NPS Account opening or later.
You can withdraw from this account anytime.
Tier II NPS Account can be opened with initial minimum contribution of Rs.1,000/-. There is no requirement of depositing any minimum amount each year to keep the Tier II NPS Account active.
