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ET Money Exclusive 
National Pension System
Invest for retirement and save ₹62,400 in taxes every year
India's own Pension System to prepare you for retirement
Save tax up to ₹62,400 every year on investing ₹2 lakh
Get tax-free amount at maturity when you reach 60 yrs
Also keep getting regular income for a stress-free retirement
What is National Pension System?
National Pension System (NPS) is a pension cum investment scheme launched by Government of India to provide old age security to Citizens of India. It brings an attractive long term saving avenue to effectively plan your retirement through safe and regulated market-based return. Upon maturity, individual gets a lump sum amount along with regular income for a stress-free retirement.
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Benefits of NPS
World's cheapest retirement plan
You pay less than 0.02% of your investment value as annual fees
Better returns than traditional options
A mix of stocks & FD-like investments results in a bigger bank balance
Unique way to reduce risk
Automatically increases allocation to FD-like investments as you reach closer to retirement
Managed by professionals
Your money is invested & managed by India's best pension fund managers
Enforces investment discipline
Your investment is locked-in until you turn 60 years. Plus, a minimum yearly investment of Rs.1,000 is compulsory
Additional tax benefits
EEE savings Your investment amount, returns earned & maturity amount are all TAX FREE!
Save tax of ₹15,600
Investment up to ₹50,000/year is eligible for tax exemption u/s 80CCD (1B)
Save tax of ₹46,800
Investment up to ₹1.5 lakh/year is eligible for tax exemption u/s 80CCD(1)
*as an alternate to 80C
NPS Calculator
Maturity is calculated as 60 years of age. These calculations are tentative and on the basis of assumed rate of interest of 12.0% p.a.
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Maturity is calculated as 60 years of age. These calculations are tentative and on the basis of assumed rate of interest of 12.0% p.a.
How NPS works
18
Start investing and continue
every year until
you turn 60 years of age
60
Retirement age. Withdraw up to
60% of the corpus tax-free
and invest rest for regular income
Enjoy monthly
pension for a
stress-free retirement
NPS Vs other retirement schemes
Why save for retirement?
How your money is invested
Your money is invested in varied asset classes based on your investment plan and age
Who will be managing your funds
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Why buy on ET Money?
- Exclusive
Make monthly instalments to your NPS account
Fast, easy & paperless
Instant tax proof
Track all your investments in one place
One click payment via EasyPay
Frequently asked questions
Any citizen of India, aged between 18-65 years as on the date of submission of his/her application can invest in NPS. The citizens can join NPS either as individuals or as an employee-employer group(s). However, OCI (Overseas Citizens of India), PIO (Person of Indian Origin) card holders and HUFs are not eligible for opening an NPS account.
Currently, investment in NPS on ET Money platform is available for Indian citizens who are resident and pay tax in India.
User can make investment of up to ₹2,00,000 to be eligible for tax saving of ₹62,400
- Investment of up to ₹50,000 to be eligible for tax deduction u/s 80CCD (1B) - Tax saving of ₹15,600
- Investment of up to ₹1,50,000 to be eligible for tax deduction u/s 80CCD (1) - Tax saving of ₹46,800
Tax saving of ₹46,800 under u/s 80CCD (1) is an alternative to saving of ₹46,800 on ₹1,50,000 under 80C
Under NPS account, there are two type of accounts - Tier I & II.
Tier I account is mandatory for investing in NPS and all the tax-saving benefits are applicable on this account type. However, it is a restricted and conditional withdrawable retirement account which can be withdrawn only upon meeting the exit conditions prescribed under NPS.
Tier-II account is optional in nature and is available as an add-on to any Tier-1 account holder. Subscribers are free to withdraw their savings from this account whenever they wish, however, there are no tax benefits on investing in Tier II account.
Currently user can invest only in Tier I account on ET Money.
No, multiple NPS accounts for a single individual are not allowed as NPS is fully portable across sectors and locations, hence, user need not apply for new account incase of change in job or location. In case you already have an NPS account outside of ET Money, you can easily switch the same to ET Money and manage all your transactions in one place. Please reach out to npssupport@etmoneycare.com for further details.
NPS is a Government of India initiative to provide old age security to Citizens of India, however, Government will not be making any contribution to your NPS account. The contribution in NPS account is made only by the individual under the "all citizens of India" model or by the employee-employer group under the corporate model.
Currently you can invest only under "all citizens of India" model on ET Money.
NPS is a retirement product and investment is done by users with an objective of saving for the post retirement years. As per PFRDA Regulations 2015, subscriber can withdraw money as per following conditions:
Upon Superannuation - When a subscriber reaches the age of 60 years of age, he or she can withdraw up to 60% of the accumulated corpus as lumpsum and remaining share is invested for regular monthly/quarterly pension for period as chosen by the user. If the total accumulated pension corpus is less than or equal to ₹2 lakh, subscriber can opt for 100% lumpsum withdrawal.
Pre-mature Exit - In case a need arises for early withdrawal, user can opt for pre-mature exit after completing 10 years in NPS. User can withdraw up to 20% of the accumulated corpus as lumpsum and remaining share is invested for regular monthly/quarterly pension for period as chosen by the user. If the total corpus is less than or equal to ₹1 lakh, subscriber can opt for 100% lumpsum withdrawal.
Upon Death of Subscriber - The entire accumulated pension corpus (100%) would be paid to the nominee/legal heir of the subscriber.
NPS qualifies as EEE product, where in your investment is completely tax-free at all stages. Your invested amount, return earned and maturity withdrawal are all completely tax-free.