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2 mins Read | 8 Months Ago

Reasons why ICICI Bank’s National Scheme (NPS) stands out – ICICI Blog

How does one invest in NPS online?

The National Pension System (NPS) is governed by the Pension Fund Regulatory and Development Authority (PFRDA). This scheme allows individuals to contribute towards their retirement funds. Read on further to know why the scheme stands out from the rest.

Investment is one of the key aspects of financial planning. Many of us prefer to make investments, especially to save taxes and to fund our long-term goals. One of the schemes that allow you to gain more is the National Pension System (NPS).

What is NPS?

The National Pension System allows subscribers to contribute regularly for retirement. Every NPS Account holder gets a Permanent Retirement Account Number (PRAN), which is a unique number that remains with the subscriber throughout his lifetime. As part of the scheme, a subscriber can contribute to the scheme regularly during their working life. Post-retirement, the subscriber can use the corpus in lump sum and use the remaining funds to buy an Annuity Plan.

What are the types of NPS offered by ICICI Bank?

The National Pension System (NPS) encourages people to invest in a Pension Account at regular intervals till the time of retirement. It has Tier I and Tier II Accounts. At ICICI Bank we offer two types of NPS Accounts.

  • Tier I Tier I is a mandatory NPS Account. An individual can open this type of an NPS Account with a minimum contribution of Rs 1,000 in a financial year.

  • Tier II This Account type can be opened voluntarily by individuals who already have a Tier I Account. At the time of account opening, you can start with a minimum investment of Rs 1,000.

What are the tax benefits of NPS?

NPS Tier I Account holders can claim tax deductions up to Rs 1.5 lakh and an additional Rs 50,000 in a financial year under Section 80CCD (1) and Section 80CCD (1B) of the Income Tax (IT) Act. For Tier II Account holders, there are no tax benefits. With respect to withdrawals, there is no tax applicable for the 40% lump sum withdrawal & 60% annuity purchase model.

Some of the advantages of opening an NPS Account with ICICI Bank are:

  • ICICI Bank is one of the top Points of Presence (POP) in private sector NPS services

  • A dedicated NPS team for each state and branch network PAN India

  • Online PRAN generation through ICICI Bank Net Banking or the iMobile Pay app

  • The Bank has a subscriber base of more than 2.5 lakh

  • It is a flexible investment option for both risk-averse investors helping them create a substantial corpus for retirement.

How does one open an NPS Account with ICICI Bank?

If you are looking to invest in a long-term investment option, National Pension Scheme is the best plan. Any resident Indian between the age of years and years can apply for NPS online or offline with ICICI Bank Net Banking or the iMobile Pay app. To get started, visit https://bit.ly/39jNpFh.

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