Introduction
NPS, or National Pension Scheme is a retirement saving scheme given by the government of India. The NPS scheme was started for employees only. Later on, it was made available to the public as well.
NPS gives you two types of investment accounts- NPS Tier I account and NPS Tier II account.
Tier I account- NPS Tier I account is mandatory and must be opened by each and every individual who wishes to be a part of NPS scheme.
Tier II account- NPS Tier II account is optional in nature. You can choose to open an NPS Tier II account after you have opened a Tier I account. NPS Tier II account comes with various benefits. Let's look into it.
Benefits of NPS Tier II
No additional maintenance charge.
Flexible withdrawal facility, no other government scheme provides this.
NPS Tier II account can be used to fund emergency expenses because of the easy withdrawals.
You have the option to transfer funds from NPS Tier II account to Tier I account.
Investment in an NPS Tier I account can be done in the similar way investment in a Tier I account is done.
You do not need to maintain a minimum balance in an NPS Tier II account.
You can nominate a person to accept the amount proceeds in the case of your demise.
Who is eligible to open an NPS Tier II account?
Any resident of India in the age group of 18-60 years.
You must have an NPS Tier I account and a PRAN number must be allotted to you.
To open an NPS Tier II account, you must deposit a minimum amount of ₹1000.
How to open an NPS Tier II account?
Step 2 - Enter the PRAN number allotted to you when you opened Tier I account
Step 3 - Enter your DOB, PAN card number and Captcha code.
Step 4 - Once PRAN number is verified, you need to make the minimum deposit to open Tier II account.
Conclusion
NPS Tier II account comes with various benefits for individuals. To know more about NPS, visit PensionBox.
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