Secure Your Retirement with NPS
Build a retirement corpus with India's lowest-cost pension scheme. Get additional tax benefits of up to Rs 50,000 beyond the Section 80C limit, all with professional guidance.
Open NPS AccountA Government-Backed Pension Scheme
The National Pension System (NPS) is a voluntary, long-term retirement savings scheme regulated by PFRDA (Pension Fund Regulatory and Development Authority). It is open to all Indian citizens between 18 and 70 years of age.
Unlike traditional fixed-return instruments, NPS invests your money across equity, corporate bonds, and government securities based on your chosen allocation. This market-linked approach has historically delivered higher returns than PPF or FDs over long periods.
NPS is one of the most cost-efficient investment vehicles in India, with fund management charges as low as 0.01% — a fraction of what mutual funds charge. Combined with its exclusive tax benefits under Section 80CCD(1B), NPS is a powerful tool for retirement planning.
Government Backed
Regulated by PFRDA under the Ministry of Finance. Your money is safe and well-governed.
Extra Tax Savings
Save up to Rs 50,000 additionally under 80CCD(1B), over and above the 80C limit.
Low Cost
Fund management charges as low as 0.01%. No other investment product comes close.
Flexible Allocation
Choose your mix of equity, bonds, and government securities. Change fund managers anytime.
Tier I vs Tier II
NPS offers two types of accounts with different purposes and rules. Most people need only Tier I for retirement and tax savings.
Tier I Account
The primary pension account. Mandatory for accessing NPS tax benefits.
- Tax deduction under 80CCD(1) and 80CCD(1B)
- Employer contribution deductible under 80CCD(2)
- Lock-in until age 60 (partial withdrawal allowed after 3 years for specific purposes)
- Minimum Rs 1,000 per year contribution
- 60% lump sum tax-free at retirement, 40% used for annuity purchase
Tier II Account
A voluntary savings account with full withdrawal flexibility. Requires an active Tier I account.
- No additional tax benefits (except for government employees)
- No lock-in period — withdraw anytime
- Same low-cost fund management as Tier I
- Minimum Rs 250 per contribution
- Works like a savings account with market-linked returns
Triple Tax Advantage
NPS offers three separate tax deduction sections, making it one of the most tax-efficient investments available.
Section 80CCD(1)
Up to 10% of Salary
Employee's own contribution to NPS. Deductible up to 10% of basic salary + DA. This falls within the overall Rs 1.5 lakh limit of Section 80C.
Section 80CCD(1B)
Additional Rs 50,000
An exclusive NPS benefit. This Rs 50,000 deduction is over and above the Rs 1.5 lakh limit of Section 80C. Available only for Tier I contributions.
Section 80CCD(2)
Up to 14% of Salary
Employer's contribution to your NPS. Deductible up to 14% of basic salary + DA (10% for non-government employers). No cap within the overall limit.
EET Taxation: NPS follows Exempt-Exempt-Taxed treatment. Contributions and growth are tax-free. At maturity, the 60% lump sum withdrawal is tax-free, but the annuity income from the remaining 40% is taxable as per your income slab.
Get Started in 3 Simple Steps
We handle the paperwork and account setup. You just share your documents and start investing.
Share PAN & Aadhaar
Upload your PAN card and Aadhaar through our secure document portal. We verify your identity for the NPS registration.
We Open Your NPS Account
We complete the eNPS registration, select the right pension fund manager and asset allocation based on your age and risk profile.
Start Contributing Monthly
Set up auto-debit for monthly contributions. We review your allocation annually and help you claim tax deductions during ITR filing.
Frequently Asked Questions
For Tier I, the minimum initial contribution is Rs 500, and the minimum annual contribution is Rs 1,000. For Tier II, the minimum contribution per transaction is Rs 250. There is no upper limit on contributions for either account.
Yes. You can switch your Pension Fund Manager (PFM) once per year at no additional cost. You can also change your asset allocation (equity, corporate bonds, government securities) once per year. We help you evaluate fund performance and make the switch if needed.
At age 60, you can withdraw up to 60% of your corpus as a tax-free lump sum. The remaining 40% must be used to purchase an annuity plan from an empaneled insurance company, which provides a regular pension income. If the total corpus is Rs 5 lakh or less, you can withdraw the entire amount as a lump sum.
Partial withdrawals from Tier I are allowed after 3 years of account opening, for specific reasons like children's education, marriage, home purchase, or medical treatment. You can withdraw up to 25% of your own contributions (not including employer contributions or returns). A maximum of 3 partial withdrawals are allowed during the entire tenure. For premature exit (before 60), at least 80% of the corpus must be used for annuity purchase.
They serve different purposes. PPF offers guaranteed, tax-free returns (EEE status) with a 15-year lock-in, making it suitable for risk-averse investors. NPS is market-linked with potentially higher returns over the long term, and offers an additional Rs 50,000 tax deduction under 80CCD(1B). However, NPS has EET taxation — the annuity portion is taxable. For most salaried individuals, having both PPF and NPS is the optimal strategy: max out 80C with PPF/ELSS, then invest Rs 50,000 in NPS for the extra 80CCD(1B) deduction.
NPS offers four asset classes that you can mix according to your risk appetite:
- Class E (Equity): Invests in index funds (Nifty 50, Sensex). Maximum 75% allocation allowed, reducing by 2.5% per year after age 50.
- Class C (Corporate Bonds): Invests in bonds issued by corporates and PSUs. Moderate risk, moderate returns.
- Class G (Government Securities): Invests in central and state government bonds. Lowest risk, stable returns.
- Class A (Alternative Assets): Invests in REITs, InvITs, and similar instruments. Maximum 5% allocation allowed.
You can choose Active Choice (set your own allocation) or Auto Choice (lifecycle-based allocation that automatically reduces equity exposure as you age).
Ready to Start Your Retirement Planning?
Open your NPS account today and start saving up to Rs 50,000 in additional taxes every year. We handle everything from registration to annual reviews.
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