National Pension System (NPS): How to Open an Account Online
Learn how to open an NPS account online in 2024, including benefits, eligibility, and step-by-step guidance.
The National Pension System (NPS) is a voluntary, government-backed savings scheme that provides a regular income post-retirement. It’s a low-cost, tax-saving investment option for Indians. This blog explains how you can open an NPS account online in 2024 and secure your future.
Benefits of NPS
Tax Savings:
- Contributions are eligible for tax deductions up to ₹2 lakh under Sections 80C and 80CCD(1B).
Flexible Investments:
- Options to invest in equity, corporate bonds, or government securities.
Pension for Life:
- A portion of the corpus is used to purchase an annuity, ensuring lifelong pension.
How to Open an NPS Account Online
Eligibility:
- Indian citizens aged 18–65 years.
Steps to Register:
- Visit the official NPS portal: www.enps.nsdl.com.
- Choose ‘Registration’ under the eNPS section.
- Fill in Aadhaar or PAN details and upload a scanned signature.
- Make the initial contribution (minimum ₹500 for Tier I accounts).
- Generate your Permanent Retirement Account Number (PRAN).
KYC Verification:
- Link with your bank for KYC validation.
NPS Account Types
- Tier I Account: Mandatory, tax-saving option with withdrawal restrictions.
- Tier II Account: Optional, with no withdrawal restrictions, ideal for short-term savings.
FAQs
What is the minimum contribution?
- ₹500 for Tier I and ₹250 for Tier II.
Can NRIs open an NPS account?
- Yes, Non-Resident Indians are eligible.
Important Links: