National Pension System or NPS is a savings scheme targeted as a retirement investment for young individuals.
You can invest in the NPS account during the young days and reap the benefit after you’ve retired from your job.
The interest rate offered by the NPS account varies and is controlled by the Market speculations meaning the NPS account is a market-linked scheme and the investment you’ve made will be invested in the market.
India is a developing country and the companies in India have a huge potential when it comes to market performance hence, the investment you’ll make in the NPS account is highly beneficial for you.
You can open the NPS Account in any of the banks as well as a post office. One such bank is Punjab and Sind Bank which is one of the best Government Banks in India.
In this column, we will discuss How to Open NPS Account in the Punjab and Sind Bank? Documents Required, Process, etc.
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
- You are not allowed to withdraw prematurely however, under certain conditions you might withdraw the account
- The minimum contribution is Rs.500/- per annum
Tier-II
- This account is an optional account that can be opened if you want to
- You can withdraw the funds easily from this account
- The minimum deposit amount is Rs.1000/- per annum
Interest rate Offered by NPS Account
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% |
How to Open NPS Account in the Punjab and Sind Bank?
The following are the step-by-step instructions on how to open an NPS account in Punjab and Sind Bank-
- Visit the official website of Punjab and Sind Bank NPS Account online portal
- Now, click on the Registration button followed by selecting the basic NPS account details, Account type, Aadhar Card details, and clicking on the continue button
- Now, you’ll be redirected to a new form which will be partially filled with the details mentioned on your Aadhar card or PAN Card.
- While filling out the application form, you’ll also have to upload the documents mentioned below and select the pension fund manager and strategy for investment
- After filling out the form, you’ll have to pay for the initial deposit amount using your debit card, net banking, etc.
- After successful payment, you’ll be issued with a PRAN number using which you can access your NPS account easily
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 Punjab and Sind Bank-
- 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
FAQ
In case, you’ve retired early then you can partially withdraw given the account has matured for at least 25 years and the maximum withdrawal will be 80% of the funds in the NPS Account and that too must be invested in an Annuity Program.
NPS Account is a market-linked scheme that offers returns as per the performance of the market in India. When it comes to NPS accounts higher returns can be expected especially given the fact that India is the fastest-growing major economy with huge potential.
Yes, you can update your information in your NPS Account. For updating the information, you’ll have to visit the official bank premises of the Punjab and Sind Bank or any other POS you’ve used.
In case of the sudden death of the individual, the account will immediately collapse and the funds accumulated in the NPS account will be provided to the nominee of the account.
