How to Open NPS Account in Union Bank of India?

Union Bank of India is one of the vendors that can provide you with the NPS Account Opening. If you are an account holder of Union Bank and want to open an NPS account then you should definitely follow along.

Here, we provide you with the step-by-step process on how to open an NPS account in Union Bank of India. NPS stands for National Pension Scheme which is a Government of India backed savings scheme for individuals wanting to save funds for retirement.

Like any retirement savings account the interest rate offered in this account is high and offers security as it is backed by the government, hence, making it one of the best options for you to invest in.

Let’s dig deep into the NPS account, its features, and its benefit for NPS subscribers.

How to Open NPS Account in Union Bank of India

Benefits of an NPS Account

There are a lot of benefits for the NPS Account subscribers which makes it one of the best instruments of investment. Here, we list out some of the benefits that you will find in an NPS Account-

  • The account holders of NPS get attractive interest rates on their investment which is backed by the Government of India. The interest rate also comes with the power of compounding meaning you’ll earn compounding interest rates
  • NPS Subscribers can claim up to Rs.1.5 lakhs under the Sec 80 CCD (1) of the Income Tax Act along with an additional Rs.50,000/- of benefit under section 80CCD (1B)
  • The maturity amount of the NPS account is tax exempted for up to 40% of the amount
  • The NPS subscriber is required to purchase an annuity scheme with at least 40% of the maturity amount and he/she will receive a pension from that corpus

Types of NPS Account

Before applying for the NPS Account, you should know the different types of NPS accounts available. The following are the two different types of NPS Accounts-

TypeTier-ITier-II
Minimum Contribution AmountRs.500/-Rs.1000/-
Maximum Contribution AmountNot anyNot any
LiquidityLiquefying is allowed after 25 years with a 50% withdrawal limitLiquify anytime you want
Interest Rate Offered (10 years)9.57%-10.86%9.59%-10.58%

How to Open NPS Account in Union Bank of India?

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

  • Visit the official website of Union Bank of India and the eNPS page and click on the apply online button
  • After clicking on the apply online button, you’ll be redirected to a new page where you’ll have to enter your name, number, email ID, etc.
  • An OTP will be sent on your mobile number which you’ll have to enter in the given field
  • After entering the OTP, you’ll be redirected to a new form in which you’ll have to fill and chose the type of account you want
  • Now, provide your Aadhar card number, and PAN Card number and click on the Next button
  • After clicking on the Next button, a partially filled form will appear which you’ll have to complete with proper details
  • An acknowledge number will be generated against your NPS application request and you’ll have to click on the continue button
  • Now, provide your bank details including the Bank IFSC Code followed by clicking on proceed button
  • A nomination form will appear where you’ll have to provide the information about your nominee
  • Now, you’ll have to upload the documents mentioned below in the relevant spaces followed by clicking on the continue button
  • After clicking on the continue button, you’ll have to pay the initial deposit amount via online means
  • After successful payment, your account will be successfully opened and you can now start using the NPS account

List of Pension Fund Managers in NPS Account

While filling out the form, you’ll have to choose the pension fund manager who will manage your investment. By default, SBI manages the funds, if you want to change that then you have the following 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 NPS Account in Union Bank of India

Here is the list of documents that you’ll have to upload while filling out your online NPS application form-

  • Identity Proof- Aadhaar Card, Class 10 and 12 certificates, PAN Card, Passport, etc.
  • Residence Proof-Electricity bill, Utility bills, Bank Passbook first page, etc.
  • Application Form for opening NPS Account
  • PAN Card (Mandatory) scanned
  • Aadhaar Card (Mandatory)
  • Canceled Cheque
  • Scanned passport size image
  • Scanned Signature

FAQ

Can I retire early i.e. before 60 years and still get the pension?

Yes, you have an option to retire early and your NPS can also be withdrawn prematurely however, at least your NPS account should’ve attained 10 years of maturity, and the lump sum amount that you can withdraw is 20% and the rest of the funds must go for purchasing of an Annuity plan.

Do NPS returns guaranteed?

No, NPS returns are not guaranteed because this pension scheme is market-linked and offers funds according to the performance of the market, but, since the Indian Economy is the fastest growing economy in the world the return of the market will be very high and lucrative.

Can NRI or Indians living outside India invest in an NPS account?

Yes, NRIs and Indian living outside India can invest in the NPS account, however, the account will instantly lapse if the account holder changes his/her nationality.

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