How does one invest in NPS online?

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The National Pension System (NPS) is governed by the Pension Fund Regulatory and Development Authority (PFRDA). This scheme/system allows individuals to contribute towards their retirement fund. Investing in NPS has become very easy due to the easy online access.

TIn this article, we will explain how to invest in NPS online.

In order to build a retirement fund for working professionals, the Government of India has launched the National Pension System. It is a unique Pension Scheme/System that allows individuals to effectively plan for their retirement through safe and reasonable market-based returns.

Types of NPS Account:

There are two types of NPS Accounts-

Tier I This type of NPS Account is mandatory with a controlled withdrawal benefit. You can invest in an NPS Tier I Account with a minimum investment of Rs 1,000 in a year. However, subscribers are allowed to make partial withdrawals post the completion of 3 years. Subscribers can withdraw only 25% of their self-contribution to fund their personal or business requirements.

Under Section 80CCD (1), an individual can avail a tax deduction of up to Rs 1,50,000 by contributing towards an NPS. In addition to this, subscribers can also avail a deduction of up to Rs 50,000 on NPS contribution under Section 80CCD (1B).

Tier II In case of the Tier II Account, subscribers are allowed to make unlimited withdrawals. However, a subscriber can open this Account only if he/she has a Tier I Account. The Tier II Account does not provide any tax benefits. A subscriber is required to make an initial contribution of Rs 1,000 for a Tier II Account at the time of registration.

Things to keep in mind about NPS:

• Anyone between 18 to 70 years of age can open an NPS Account online

• NPS offers subscribers the flexibility to select their investment options

• Earn attractive market-linked returns 

• Account holders can operate their Account from anywhere in India

• Subscribers can switch between different funds

• Account holders can select or change their investment pattern, Fund Manager and Point of Presence (POP).

How does one contribute to an NPS online?

You can apply for and contribute to NPS easily online. Let’s take a look at how you can contribute to NPS online.

You can enrol to an NPS using the below channels:

Via Mobile Apps:

1. Log in to iMobile: Download and log in using your bank customer ID and password via the App Store or Google Play Store.
2. Go to 'Invest': Select the 'NPS' tile.
3. On the next screen click on the "Invest Now” and choose Individual/Corporate Subscriber. 
4. Enter Details: Provide personal and on the next page fill your nominee details for the NPS account and then click proceed.
5. Next, you have to choose your fund manager and your scheme preference, and then click on submit.
6. Final step, Upload your photograph and signature and click on continue - then sent an OPT which you will fill in to complete your journey,
7. Confirm and Submit: Review the information and submit your application.

iMobile Pay

1. Log in to Net Banking: Access your bank's website and log in with your user ID and password.
2. Navigate to 'Investments and Insurance': Select 'National Pension System' under this section.
3. On the next screen choose Individual / Corporate Subscriber.
4. Enter Details: Fill in personal and nominee information.
5. Final step, Upload your photograph and signature and click on continue - then sent an OPT which you will fill in to complete your journey.
6. Confirm and Submit: Verify the details, submit the application, and track your NPS request.

Conclusion:

Wish to save for a comfortable retirement? Start investing in NPS through ICICI Bank Net Banking and iMobile Pay app. 

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