National Pension System is a market-linked investment account that offers individuals amazing returns on the investment made.
NPS is a type of retirement savings fund account that will save money that you invest in the account and you’ll get high returns at the time of maturity.
If you are a young individual then you should invest in the NPS account as India is a growing economy hence, the returns that you’ll get will also be very high.
You can open the NPS account in various banks and Post offices including the UCO Bank. In this article, we will discuss how to open an NPS account in UCO Bank, Documents required, Pension fund manager list, etc.
Eligibility Criteria for NPS Account
The following are the eligibility criteria for the NPS Account-
- The subscriber must be a citizen of India
- The age limit for opting for the NPS account is from 18 years of age up to 60 years of age
Type of NPS Account
The following are the types of NPS accounts that you can choose from-
| Features | Tier-I | Tier-II |
| Account | Mandatory Account | Optional |
| Liquidity | No | Yes, whenever you want |
| Tax benefit | Up to 1.5 Lakhs/- with additional Rs.50,000/- | No Tax Benefits |
NPS Account Interest earned
The following are the interest earned by the NPS account in the following years-
Tier-I
| Pension Fund Managers | Returns* | |||
| 6-month | 1-year | 3-year | 5-year | |
| HDFC Pension Fund | 9.16% | 9.56% | 14.72% | 11.90% |
| UTI Retirement Solutions | 7.71% | 8.77% | 13.50% | 11.85% |
| SBI Pension Fund | 8.26% | 9.73% | 13.49% | 11.38% |
| ICICI Pension Fund | 9.56% | 9.30% | 13.11% | 11.12% |
| Kotak Mahindra Pension Fund | 9.30% | 9.28% | 13.00% | 11.12% |
| Reliance Pension Fund | 7.51% | 9.15% | 12.05% | 10.32% |
| LIC Pension Fund | 7.07% | 8.13% | 11.86% | 10.22% |
| Aditya Birla Pension Fund | 6.22% | 7.12% | NA | NA |
Tier-II
| Pension Fund Managers | Returns* | |||
| 6-month | 1-year | 3-year | 5-year | |
| HDFC Pension Fund | 9.20% | 9.47% | 14.87% | 11.50% |
| UTI Retirement Solutions | 7.54% | 9.39% | 13.66% | 11.96% |
| SBI Pension Fund | 8.24% | 9.71% | 13.50% | 11.39% |
| ICICI Pension Fund | 9.64% | 9.32% | 13.16% | 11.14% |
| Kotak Mahindra Pension Fund | 9.29% | 9.54% | 13.03% | 11.12% |
| Reliance Pension Fund | 7.34% | 8.94% | 12.08% | 10.32% |
| LIC Pension Fund | 6.83% | 8.51% | 11.74% | 8.97% |
| Aditya Birla Pension Fund | 5.81% | 6.61% | NA | NA |
How to Apply for an NPS Account in UCO Bank?
You can follow these steps to apply for the NPS Account in UCO Bank-
- Visit the official website of the UCO Bank NPS account and click on the New Registration button
- Now, a small form will appear which you’ll have to fill with details like name, application number, Aadhar card, etc.
- After filling out the application form, click on the continue button
- An OTP will be sent on your registered mobile number which you’ll have to fill in the relevant space
- After entering the OTP, you’ll have to fill out the application form with other details like name, address, contact details, nominee details, etc.
- After filling out the application form, an acknowledgment number will be generated, keep it safe
- Now, you can choose the pension fund manager or by default the SBI fund manager
- After choosing the pension fund manager, you’ll have to select the investment strategy that you want to pursue
- Now, you can eSign the NPS form using your Aadhar Card number easily
Documents Required for NPS Account
The following are the documents required for opening the National Pension System Account-
- Aadhar Card (registered with Banks and Aadhar Card)
- PAN Card
- Email Id
- Mobile Number
List of Pension Fund Manager
The pension fund manager is an organization that professionally manages your investment money by investing strategically into the instruments of your choice. The fund managers will analyze the market and try to invest in quality stocks to earn maximum profits.
The State Bank of India fund manager is selected by default and you can change your fund manager as per your requirements. The following are the list of pension fund manager that you can choose from-
- LIC Pension Fund Limited
- SBI Pension Funds Private Limited
- HDFC Pension Management Company Limited
- ICICI Pension Fund Management Company Limited
- UTI Retirement Solutions Limited
- Kotak Mahindra Pension Fund Limited
- Reliance Capital Pension Fund Limited
- Birla Sunlife Pension Management Limited
Investment Strategy
An investment strategy is an instruction that you set while opening the NPS Account. You can reset the strategy whenever you want. The investment that you make will be invested in three types of instruments- Government Banks, Corporate Bonds, and Stock Investments.
You can set the percentage of investment amongst each investment and plan your investment easily. Now, you should consider the investment strategy based on your age i.e. if you are young then you should invest in stock more, and bonds less. If you are old then playing it safe is the best strategy and invest more in bonds.
FAQ
Yes, non-resident Indians can also invest in the NPS Account however, the account will immediately collapse if he/she accepts any other citizenship.
There is no maximum limit for the investment, and the minimum investment amount is Rs.1000/-.
No, you cannot open more than one NPS Account and if you have more than one account then the oldest account will be considered as only account, and the rest of the accounts will collapse. No, interest will be paid.
No, you can invest in other pension fund accounts like PPF Account. You can only have one NPS account that is the only restriction this account implements.
