How to Open NPS Account in the Bank of Baroda? Documents Required, Process, etc.

National Pension Scheme or NPS is a retirement scheme provided to a young individual who wants to save funds for retirement.

Any individual interest can opt to invest in this scheme and reap benefits at the time of maturity of the account.

This account can be exciting as the interest rate offered by the NPS is really attractive. Also, this account comes with Exempt exempt exempt status which means the interest earned, principle, and maturity amount are all exempted from tax.

Apart from EEE status, you’ll also get a tax benefit at the time of filing ITR up to Rs.1.5 lakhs/- per annum. 

You can open this account in various banks in India, especially in all the Government Banks in India. One such bank that provides an NPS account opening facility is the Bank of Baroda.

In this column, we will discuss How to Open NPS Account in the Bank of Baroda? Documents Required, Process, etc.

Interest rate Offered by NPS Account

NPS account is a market-linked scheme therefore, the interest earned can be difficult to predict but, the investment is expected to grow over time. The following are the interest rate (estimated) offered by the NPS Account-

NPS Tier I Returns

Asset Classes	1-year Returns(%)*	5-year Returns(%)*	10-year Returns(%)*
Equity	15.33%-18.81%	13.11%-15.72%	10.45%-10.86%
Corporate Bonds	12.46%-14.47%	9.27%-10.15%	10.05%-10.64%
Government Bonds	12.95%-14.26%	10.29%-10.88%	9.57%-10.05%
Alternative Assets	3.98%-16.73%	NA	NA

NPS Tier II Returns

Asset Classes	1-year Returns(%)*	5-year Returns(%)*	10-year Returns(%)*
Equity	15.19%-17.92%	13.05%-15.83%	10.35%-10.58%
Corporate Bonds	12.71%-16.36%	9.55%-10.17%	9.86%-10.60%
Government Bonds	12.61%-13.42%	10.40%-12.00%	9.59%-10.07%

Types of National Pension Scheme Account

The following are the types of NPS accounts-

Tier-I

• This account is a mandatory account that every individual investing in an NPS account is required to open
• Premature withdrawal is only allowed under certain circumstances also the account must be at least 25 years old and only 50% can be withdrawn
• The minimum contribution amount per year is Rs.500/-

Tier-II

• This account is an optional account which you can opt to open
• You can liquidate this account whenever you want and the minimum deposit amount for a Tier-II account is Rs.1000/-

Why Choose NPS Account for Retirement?

The following are the reasons why an NPS account is a better option for investment for retirement-

• NPS Account is a market-linked account that marks the returns on investment as highly attractive. India is a growing economy and therefore, the stock market of India can give you surprising returns.
• You can open NPS Account easily via online means, this account is operated by multiple banks and post offices hence, reachability is not an issue.
• A regular income after retirement helps you stay financially independent

How to Open NPS Account in the Bank of Baroda?

The following are the step by step instructions on how to open an NPS account in Bank of Baroda-

• Visit the official Bank of Baroda National Pension Scheme portal by clicking the link- https://mynps.nsdl.com/myNPS/NationalPensionSystem.html?appType=main&authId=c3JnelhON0sxeHNUM1BDNXJrN29LZz09
•  Now, click on the Registration button and you’ll be redirected to a small application form
• Fill out the application form with correct details like Aadhaar number, mobile number, Aadhaar Paperless Offline e-KYC ZIP file(upload), and Share Code for your Paperless Offline eKYC. Below we have mentioned how to download the Aadhaar Paperless Offline e-KYC ZIP file
• After filling out the application form, click on the continue button and you’ll be redirected to a partially filled application form
• Here, all the demographic details like name, address, Gender, Date of Birth, photo, etc. will be automatically filled in, you’ll have to complete the application form with other details like a nomination, father’s name, mother’s name, etc.
• You’ll also have to choose the pension fund manager and the type of investing you need i.e. equity, corporate, or government. You can also choose in a combination.
• Now, upload the documents mentioned below followed by clicking on the payment button
• You can make the initial contribution using net banking, UPI, Credit card/debit card, etc.
• After successful payment, you’ll receive a PRAN number which you can use for contributing to the NPS account and for keeping track of your account

List of Pension Fund Managers in NPS Account

The following are the list of pension fund manager in the NPS account-

• SBI Pension Funds
• LIC Pension Fund
• UTI Retirement Solutions
• HDFC Pension Fund
• ICICI Prudential Pension Fund
• Kotak Pension Fund
• Reliance Capital Pension Fund
• Birla Sun Life Pension Management Ltd.
• Indian Post Office

Documents Required for Opening NPS Account

The following are the documents required for opening an NPS account in Bank of Baroda-

• Passport
• Driving license
• Voter’s ID card
• PAN card
• Job card issued by NREGA signed by the State Government officer
• Letter issued by the National Population Register containing details of name and address)

For minor PPF accounts, the following are the documents required-

• Proof of Date of Birth i.e. Birth Certificate of the Minor
• Details of Guardian (Natural/Legal) along with KYC documents

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