When you think about retiring, do you envision long holidays with loved ones and unlimited free time to pursue your hobbies? Enjoying the perks of retired life requires prudent planning today. The National Pension System (NPS) helps you build a corpus for your golden years. If you’d like to retire confidently, you must contribute to the NPS regularly. Here’s everything you need to know about online and offline contributions.
How to Make an Online NPS Contribution
In today’s digital world, most people make quick transactions online. You can contribute to your NPS account online by following these steps:
Step 1: Visit the HDFC Pension website.
Step 2: Select the ‘Contribute to NPS’ option and choose how you’d like to make a contribution.
Step 3: Enter your PRAN and date of birth. Choose the means by which you want to receive the OTP.
Then enter the Captcha code and select the Verify button.
Step 4: Authenticate your account via the OTP to reach the contribution page. Contribute to your Tier I or Tier II account and complete the transaction via a debit card, credit card or internet banking.
Online NPS Contribution Charges
An online NPS contribution attracts a few charges. Payments made via internet banking attract charges of Rs. 3.5 per transaction. If you pay with a credit card, the charge is 0.85% of the total contribution amount. However, RuPay debit card and UPI payments do not attract additional charges.
How to Make an Offline NPS Contribution
If you prefer to make contributions offline, don’t worry. The NPS facilitates both online and offline transactions. However, you must start the offline process by visiting the HDFC Pension website to download the NPS Contribution Instruction Slip (NCIS). Fill out the form with your full name, PRAN, contribution amount and the Demand Draft (DD) or cheque number. Government employees contributing to the NPS also have to provide their date of joining since only those who registered for the NPS before 1st January 2004 are eligible to make a contribution to their Tier I account offline. Those who joined after 1st January 2004 can only make Tier II NPS contributions offline. If you’re contributing more than Rs. 50,000, you must submit a copy of your PAN with the NCIS to the nearest POP-SP.
Offline NPS Contribution Charges
Offline contributions attract a charge of 0.50% of the contribution amount, regardless of whether you pay by cash, DD or cheque. The fee is subject to a minimum of Rs. 30 and a maximum of Rs. 25,000 per transaction.
With the NPS, building a corpus for your retirement becomes easy. Get into the habit of contributing to the NPS regularly for a financially secure future. Remember, you must contribute Rs. 1,000 to your Tier I account every year. Whether you complete the process online or offline, ensure you contribute enough to fulfil your dreams once you retire.