Quick Steps To Open Govt-Backed National Pension Scheme (NPS) Account Online

National Pension Scheme (NPS) is key government backed retirement saving scheme that was introduced way back in 2004 for government employees. However, NPS saving scheme was opened for all citizens of Indian origin later in 2009. NPS scheme has been regulated by Pension Fund Regulatory and Development Authority or PFRDA.

NPS scheme, just like EPF and PPF, is an EEE instrument that helps you save tax at the time of maturity implying that the entire pension withdrawal amount becomes tax-free. EEE refers to tax-free status for investments.

Amid the availability of myriad of investment options in the market, it may become a herculean task to choose the right option that fits best for your needs. Out of the several available investment options, NPS and fixed deposits have emerged popular and reliable investment alternative that can help you significantly to fulfill your financial goals.

NPS offers individuals the much-needed financial security during their post retirement phase. NPS scheme not only provides several benefits but can also significantly help individuals escape tax from the entire corpus at maturity. It is worth noting that section 80C permits for tax deduction on contribution up to Rs 1.5 lakh within the overall limit.

Eligibility: Indian citizens that will also include non-resident Indian (NRIs) will be eligible to join NPS. Meanwhile, Overseas Citizen of India or OCI cardholders will not eligible to join the tax saving scheme. The individuals opting for NPS scheme should be between 18 year to 70 years of age.

Documents Required: The following documents given below will be needed for NPS saving scheme:

• Identity Proof such as PAN Card, Aadhaar Card, Passpost, Driving License, and Voter ID
• Address Proof: The individual must provide proof of address that may include bank statement, rental agreement, Government issued address proof, or electricity bill, water bill, and gas bill.
• Age Proof: The individual must provide birth certificate, PAN card, Passport, or any other age proof that is valid
• Latest passport size photograph

Steps to create National Pension Scheme (NPS) account online:

• You need to visit official website of eNPS i.e. enps.nsdl.com
• Navigate to Registration or click the option of "Open Your NPS Account"
• Select between Corporate Subscriber and Individual Subscriber
• Fill online form with details such as personal, bank, and contact information
• You need to upload the scanned images of necessary documents
• Start with initial contribution with a minimum of Rs 500 for Tier I and Rs 1000 for Tier II
• You will get an acknowledgement number that can be used for tracking your application status
• Once registration process has been completed all documents have been verified, you will receive a Permanent Retirement Account Number also known as PRAN that you can use for all future transactions and inquiries pertaining to NPS account

Interest rate for NPS: It is vital to note that there is no singular rate of interest for NPS scheme. The reason behind it is because NPS is a market linked implying the interest rate for the returns depends on performance of the assets that individuals invest in.