SBI National Pension Scheme Complete Details
Sahdev just joined as a working professional at a private company and is advised by the elders to choose an ideal savings/investment option for a better and protected life ahead. Seeking advice, Sahdev researched all the viable options he could choose from to invest his savings in. Following were his findings for the best saving investment in National Pension Schemes:
What is the National Pension System Scheme?
National Pension System is a central government’s defined contribution pension system initiative. It is administered and regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
The National Pension System is a long-term savings plan that contributes to the smoother proceedings of life of a working professional after retirement. Investments are always a wise choice, and if this investment can support you throughout your future, always go for it. Similarly, a pension scheme is a long-term savings investment that aids you in saving money throughout your working phase and later reaping the benefits after your retirement. Plus, the tax-efficient savings are additional benefits.
How does the National Pension System Work?
A social initiative by the central government, the National Pension System scheme is one of the most viable and tax-efficient savings options. Pension Fund Regulatory and Development Authority (PFRDA) regulates all the operations of the National Pension System. The NPS services for account opening are available both offline and online.
There are two primary accounts under the National Pension System, Tier I and tier II.
Tier I is a default account and does not permit withdrawals, whereas the Tier II account is voluntary with permissions to carry out withdrawals.
The minimum NPS contribution for tier I varies from Rs. 500 or Rs. 1000 per annum, whereas the minimum contribution amount for the tier II account is Rs. 250. Both tier accounts have no maximum limit on the amount. Any account subscriber can easily calculate their monthly pension and the tax benefits and other details using a National Pension System Calculator. This calculator can be simply accessed online and makes calculating NPS effortless.
National Pension System Scheme by SBI
SBI offers National Pension System Scheme at one of the world’s lowest management fees, 0.01% per annum. The ultra-low-cost, flexible, portable, and straightforward retirement solutions by SBI are ideal for all those who need viable and efficient savings options.
Features of NPS Scheme by SBI
- Low-cost products and services with Fund Management Charges at just 0.01%.
- One-time shift to National Pension System – Existing Corpus under Superannuation can be transferred to NPS without any Tax Inclusion.
- After retirement, the National Pension System scheme provides Provision to contribute till 70 years or defer Withdrawal up to 70 years.
- A minimum contribution of Rs. 1000 in the Financial Year.
Benefits of NPS Scheme by SBI
- Enchanting market-linked returns
- Easy accessibility across jobs and all geographic regions
- 24 x 7 Web & Mobile App of Central Recordkeeping Agency (CRA) throughout the year.
- NAV-based product and service with market-determined returns.
- Withdrawal of 40 % of the Corpus is tax-exempt.
Steps to open an SBI NPS Account
1. SBI-E-Services through the link available at onlinesbi.com
Pay a visit to any State Bank of India branch.
- Vesting criteria at the age of 60 years
- Lump-sum Withdrawal of 60 % of the Corpus
- Annuitisation of a minimum of 40% of Corpus
- Complete Withdrawal, if Corpus is below Rs. 2 lacs
- Tax-Free Withdrawal up to 25% of own contribution for three times
- A lock-in period of 3 years
- Individuals in the age group of 18 – 65
- No Non-Resident Indian customers are not eligible for an NPS account.
- Individuals falling under any pension scheme
Investing in the suitable National Pension System Scheme is crucial for a safe and secure future. This article highlights all the details of the NPS scheme plan provided by the State Bank of India. A bank with one of the lowest service charges and efficient availability of the staff and resources.
Can one make subsequent contributions to SBI's NPS scheme?
Yes, the account holders can make subsequent contributions via online and offline modes. Online Mode, the subscriber may visit www.onlinesbi.com and click on 'NPS Contribution,' available under the 'Payments/Transfers' menu. In Offline Mode, the subscriber may visit the nearest registered State Bank of India branch for NPS and submit NPS Contribution Instruction Slip (NCIS) along with the contribution amount.
Do SBI avail of Standing Instruction (SI)?
Yes, the State Bank of India avails Standing Instruction functionality available at an average purchase cost similar to Systematic Investment Plan open in Mutual Funds.