India Post also offers the facility of opening NPS accounts, among the many savings schemes that it offers.
If you're opening an NPS account with India Post, this is what you must know:
Services offered by India post for NPS subscribers
India Post allows subscribers to open new NPS (all citizens model) account, facilitates subsequent contributions, all types of service requests and exit / claim withdrawal requests, it stated on its website, indiapost.gov.in.
Types of accounts under NPS
There are two types of accounts that are opened under NPS: Tier I and Tier II. Tier I is a pension account and is mandatory. Tier II is a savings account and is optional.
There is an additional tax benefit up to Rs 50,000 for investment in NPS (All Citizen Model), said India Post.
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.|
Transactional Charges for NPS accounts
|Registration Charges||Rs. 200 (excluding taxes).|
|0.25 % 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 realization.|
Pension wealth under NPS accumulates over a period of time until retirement and grows with a compounding effect.
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