Open NPS Account in just 4 simple steps!

Keep the below given documents ready before starting the process:

 

In order to start you NPS Account Opening Journey, you need to select a CRA.

It is a Central Record Keeping Agency that stores all your data.

You may choose any CRA of your choice to proceed.

 

FAQ’s On NPS

How can I buy NPS?

1. 1. Register & Verify: Complete online registration with your email, selecting “Corporate Subscriber”. Verify using OTP.
   2. Complete KYC: Choose Aadhaar or CKYC option, verify details, and enter company information.
   3. Link Bank Details: Provide bank details for both Tier I and Tier II (if applicable) accounts.
   4. Add Nominee(s): Enter nominee details for both Tier I and Tier II accounts (if applicable).
   5. Choose Investment: Select your preferred investment option, allocation percentages, and upload required documents. Confirm and submit final application.

Difference between NPS tier I or NPS Tier II Account?

Tier I

• • Purpose: Primarily for retirement savings with tax benefits.
  • Eligibility: Open to all Indian citizens (resident and non-resident) between 18 and 65 years.
  • Contribution Limits: Minimum ₹6,000 per year, maximum 10% of basic salary (including Dearness Allowance) or ₹2 lakh per year, whichever is lower.
  • Lock-in Period: Mandatory lock-in until retirement (except for specific exemptions), with partial withdrawal options upon reaching 60 years or specific conditions.
  • Tax Benefits: Contributions up to ₹1.5 lakh qualify for tax deduction under Section 80C, additional deduction of ₹50,000 available under Section 80CCD(1B). Tax-free maturity if withdrawn as annuity and specific conditions are met.

Tier II

• • Purpose: Additional voluntary savings account with investment flexibility.
  • Eligibility: Requires existing active Tier 1 account.
  • Contribution Limits: No minimum, but cannot exceed employer’s contribution limit (subject to their policy).
  • Lock-in Period: No lock-in, partial withdrawals allowed after 6 years.
  • Tax Benefits: No tax benefits on contributions, only on maturity withdrawals under specific conditions.

 

How to start investing in NPS online?

• • Visit the HDFC Pension website.
  • Click “Open NPS Account” and choose “Individual (Tier I)” or “Corporate (Tier II)” based on your preference.
  • Enter your personal details and complete the KYC verification.
  • Choose your investment option (Equity, Auto Choice, etc.).
  • Set up your initial contribution amount and frequency (monthly, quarterly, etc.).
  • Link your bank account for online contributions.
  • Submit your application and verify it through OTP or e-signature.

What is the return of NPS in 20 years?

Disclaimer: NPS offers market-linked options with estimated returns ranging from 7% to 12%, depending on your chosen asset allocation. Past performance is not indicative of future results.

How can I get a ₹50,000 pension per month in NPS?

1. 1. Use the NPS calculator on the HDFC Pension website to estimate the required corpus based on your desired pension amount and retirement age.
   2. Calculate the monthly contribution needed to reach that corpus by considering the estimated returns and investment period.
   3. Adjust your contribution amount or desired retirement age based on the calculator’s output.

Disclaimer: This requires planning and understanding future uncertainties.

 

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