India Post or Department of Posts, the postal system of the country, offers several savings schemes. It also offers the facility of opening an account under National Pension System (NPS), said India Post its official website, indiapost.gov.in. NPS is a retirement savings scheme, which is regulated by the Pension Fund Regulatory and Development Authority. Under the system, contributions from subscribers along with matching contributions from respective governments as an employer, are collected and accumulated in an individual pension account.
Here are 5 things to know about Post office National Pension System (NPS):
1. Eligibility: All citizens who do not come under any NPS sector and are aged between 18 and 65 years of age can open a post office NPS account.
2. Services: India Post allows subscribers to open new NPS (all citizens model) account and make subsequent contributions. All types of service requests and exit or claim withdrawal requests are also offered.
3. Types of accounts: There are two types of accounts that are opened under NPS namely Tier I and Tier II. Tier I is a pension account and is mandatory. Tier II is a savings account and is optional.
4. Amount and charges: One has to pay Rs 500 for as minimum initial contribution with registration.
Finance cap on NPS accounts
|Minimum Initial Contribution with registration||Rs. 500 (excluding taxes)|
|Minimum Subsequent Contribution||Rs. 500 (excluding taxes)|
|Maximum Contributions||No limit|
|Minimum Contributions in a Financial Year||Rs.1,000 in Tier I|
|Minimum transactions in a Financial Year||One|
|Registration Charges||Rs. 200 (excluding taxes)|
|0.25 per cent of the contribution amount subject to minimum of Rs 20 (excluding taxes) and maximum of Rs 25,000 (excluding taxes)|
|All Service Charges||Rs 20 (excluding taxes)|
|Payment mode||Cash, cheque, DD subject to realisation|
5. Income Tax benefits: Customers get an additional tax benefit up to Rs. 50,000 for investment in NPS (All Citizen Model), said India Post on its portal.
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