LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Personal Finance News

NPS: How to open National Pension Scheme account? Bank charges - SBI vs HDFC vs ICICI vs Axis

NPS account can be opened at various banks. NPS not only make a subscriber rich during retirement but also shields the future post work life.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
NPS: How to open National Pension Scheme account? Bank charges - SBI vs HDFC vs ICICI vs Axis
Lenders like HDFC Bank, ICICI Bank, SBI and Axis Bank among others do allow this facility, however, at a cost. Photo: PTI
Written By: Pooja Jaiswar
Updated: Thu, Apr 18, 2019
06:22 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
NPS vs Mutual Funds: How to pick better option, become rich as retirement kicks-in NPS vs Mutual Funds: How to pick better option, become rich as retirement kicks-in
NPS, APY Grievance Redressal ALERT: PFRDA appoints Ombudsman for resolving grievances under National Pension Scheme, Atal Pension Yojana NPS, APY Grievance Redressal ALERT: PFRDA appoints Ombudsman for resolving grievances under National Pension Scheme, Atal Pension Yojana
NPS Account: Nomination, joint holding and other basics that National Pension System beneficiary must know NPS Account: Nomination, joint holding and other basics that National Pension System beneficiary must know
National Pension System: NPS subscriber base logs 30 pct growth in Q1FY21 National Pension System: NPS subscriber base logs 30 pct growth in Q1FY21
NPS: Sit back and relax! This scheme will give you money when you stop working; check benefits for you NPS: Sit back and relax! This scheme will give you money when you stop working; check benefits for you

The National Pension Scheme (NPS) is among government’s most successful investment plan, along with PPF and small saving scheme among others. Having an NPS account is compulsory for government employees, however, it is voluntarily offered to private employees as well. The scheme most commonly referred to as retirement saving tool, where an employee invests a certain fraction from their salary in their NPS account. NPS account can be opened at various banks. NPS not only makes a subscriber rich during retirement but also shields the future post-work life. On maturity, an NPS proceeds are divided into two parts namely 40% is set aside for regular monthly pension and 60% can be withdrawn which are also tax-free. However, to avail these major fruits of NPS, one has to open an account with bank. But did you know there are various charges for your NPS account opening, and even for making transactions in it. Lenders like HDFC Bank, ICICI Bank, SBI and Axis Bank among others do allow this facility, however, at a cost. 

Firstly, one must note that the Pension Fund Regulatory and Development Authority (PFRDA) des allow NPS operations both offline and online. A customer can open an NPS account online on NSDL website, while they can do the procedure offline or manually. For the latter mode of account opening, a citizen will have to first visit a Point of Presence (PoP) which can be a bank as well. You can always check with your nearest bank branch, if they offer NPS account opening facility. 

Once searched a relevant PoP point, you will have to fill out a form and submit them along with your KYC papers. KYC norms include your Aadhaar card, address proof, PAN card, passport, voter id and passport size photograph. You can open the account with a minimum investment of Rs 500 or Rs 1,000 annually. 

After an NPS account is opened, your bank will give you a “Welcome Kit” containing the subscriber’s unique Permanent Retirement Account Number (“PRAN”) Card and the complete information provided by the subscriber in the subscriber registration form. Take note that, PRAN will be your vital tool for identifying and operating your account, hence, keep it always safe and secured. 

Apart from PRAN, the customer also gets a Telephone Password (“TPIN”) and Internet Password (“IPIN”) which can be used to access the account.

However, there are various fees that major lenders have levied during the above-mentioned process. Let’s find out! 

For NPS registration, lenders like HDFC Bank, Axis Bank, ICICI Bank and SBI levy Rs 200 each to subscribers. Also, minimum Rs 20 and maximum Rs 25,000 reflecting some 0.25% of the total contribution amount,  is levied per subscriber by these four banks. 

Watch Zee Business TV live streaming video below: 

However, if a subscriber makes any other transaction not involving a contribution from the subscriber, then these banks levy Rs 20 per subscriber. This type of transaction is defined as non-financial transaction. 

Furthermore, there is Rs 50 per annum levied by these banks for persistency of the NPS account. 

Interestingly, SBI apart from the above-mentioned charges also levies minimum Rs 20 and maximum Rs 25,000 indicating 0.25% of the total contribution amount as a part of subsequent contribution transaction charge per subscriber. On the other hand, HDFC Bank charges only 0.10% of total contribution which can be minimum Rs 10 and maximum Rs 10,000 on subsequent contribution. ICICI Bank and Axis Bank do not have such charges. 

Not just that, HDFC Bank also has a different set of charges for PRAN card which acts like your debit or credit cards in case of NPS account. For opening a PRAN, this private lender charges Rs 40. While for annual maintenance Rs 95 is charged, and Rs 3.75 is charged per transaction using PRAN. 

Unlike HDFC Bank, the SBI, ICICI and Axis Bank do not have any PRAN charges. Hence, before opening an NPS account make sure you are aware of the above-mentioned factors. 

NPS has given returns ranging from 8% to 14%. One of the key highlights is that this investment has 50% exposure of equity market. That means, not only one enjoys a traditional investment return, but also witnesses uproar of stock exchanges in their kitty. Even when equity markets are trembling down, the impact in NPS account will not be severe or heavy, as it is more diversified tool. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
National Pension SchemeSBIHDFC BankICICI BankAxis Bank
RELATED NEWS
NPS vs Mutual Funds: How to pick better option, become rich as retirement kicks-in NPS vs Mutual Funds: How to pick better option, become rich as retirement kicks-in
NPS, APY Grievance Redressal ALERT: PFRDA appoints Ombudsman for resolving grievances under National Pension Scheme, Atal Pension Yojana NPS, APY Grievance Redressal ALERT: PFRDA appoints Ombudsman for resolving grievances under National Pension Scheme, Atal Pension Yojana
NPS Account: Nomination, joint holding and other basics that National Pension System beneficiary must know NPS Account: Nomination, joint holding and other basics that National Pension System beneficiary must know
National Pension System: NPS subscriber base logs 30 pct growth in Q1FY21 National Pension System: NPS subscriber base logs 30 pct growth in Q1FY21
NPS: Sit back and relax! This scheme will give you money when you stop working; check benefits for you NPS: Sit back and relax! This scheme will give you money when you stop working; check benefits for you

LATEST NEWS

Airbag for front-seat passenger made mandatory from THIS date

7th Pay Commission: Central Government Employees' Dearness Allowance (DA) to become 25 pct from April 2021?

Stock Market Outlook: Anil Singhvi reveals Nifty, Bank Nifty support range, says investors should trade keeping volatility in mind

ITC Share Price: Experts give 'share to buy' tag; predicts up to 25% profit in three months

Gold Price Outlook: Yellow metal falls by over Rs 11,500 in last six months; may crash much more

Covid 19 Phase 2: These government employees to be reimbursed 'medical expenses' for coronavirus vaccination

PPF Calculator: You can double Public Provident Fund income and save income tax outgo - you will need this help

NEET 2021 exam: Check here the latest update on dates and all you need to know for registration before appearing in the test

Gold Price Outlook – Gold, Silver prices may see further fall next week; expert tells what to do to maximise gains

Solid Fuel Ducted Ramjet successful flight test : How it gives technological edge to DRDO and boosts its long range air-to-air missiles capabilities—EXPLAINED

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved