SBI Yono: Quick Steps To Open NPS Account Online With SBI Yono

NPS (National Pension Scheme) can be described as a pension scheme that Indian government launched in 2004. NPS is managed by the Pension Fund Regulatory and Development Authority (PFRDA) to provide long-term retirement assistances for citizens. NPS allows investors to invest in various types of funds and instruments depending on their financial targets and risk appetite.

There are specific NPS charges linked with using this retirement scheme. It may include administrative fees, fund management fees, and pension fund charges, among others. It is important to find out the various types of charges linked with NPS as it can help investors make informed decisions.

There are 2 types of accounts provided by the National Pension Scheme known as Tier 1 and Tier 2. Under Tier 1, the account provides long term retirement savings and cannot be withdrawn while in Tier 2, flexibility is available and investors will be able to withdraw funds at any point of time. Tier 2 account serves as a voluntary savings account as well.

The scheme is equipped with several investment alternatives that may include debt, equity, government securities where subscribers may choose their respective asset allocation as per their risk-taking appetite. The scheme is available with tax benefits thus making it an attractive investment option for retirement planning.

How To Open NPS Account Online With SBI Yono: Step By Step Guide
You can open either a Tier I - Pension account or a Tier II - Investment account. Under Tier I, minimum contribution will be Rs 500, while under Tier II, there will be a minimum contribution of Rs 1,000.

• You need to open the SBI Yono App and go to "Investment" section
• You may also visit www.onlinesbi.com and press on the option "NPC Contribution" available under "Payments/Transfers" menu
• Click on "NPC Account Opening" option
• Click on "e-Services and choose "NPS Registration" or "Nearest SBI Branch" option
• Fill the necessary information required for registration and make necessary contribution for application
• You may also select "Pension Fund Manager (PFM) after opening the account that can be changed only once every financial year

Customers can also open the NPS account by visiting nearby SBI Branch (PoP-SP)
It is worth mentioning that under NPS, the pension wealth, that gets accumulated over a period of time till retirement will grow with a compounding effect.

Contribution to NPS Tier-I account will be eligible for tax deduction under the Income Tax Act, 1961. An additional tax rebate of Rs 50, 000 will be permitted for contributions made to NPS Tier-I under Section 80CCD (1B) of the Income Tax Act, 1961.

Eligibility

• Individuals aged between 18-70 years
• All citizens of India including RIs and Non-Resident Indians (NRIs)
• Individuals covered under any pension scheme.