Axis NPS Calculator

National Pension Scheme offered by Axis Bank is regulated and administered by the Pension Fund Regulatory and Development Authority (PFRDA) and is, therefore, a completely reliable government plan.

Let us know more about the National Pension System focusing on the NPS calculator, benefits, and more offered by the Axis Bank.

What is Axis NPS?

National Pension System or popularly known as National Pension Scheme offers attractive returns to citizens of India after retirement. PFRDA (Pension Fund Regulatory and Development Authority) has Axis Bank as one of their POP (Point of Presence) for the National Pension System. NPS works upon 2 main models:

• All citizens model – It includes all the citizens of India

• Corporate sector model – It includes employees of corporate entities only

What is Axis NPS Calculator?

All the banks offering National Pension Scheme provide a calculator that helps in the calculation of the lump sum amount that an individual can expect at the age of their retirement as per their contribution made to date. The main advantage of using an Axis NPS calculator is that an individual will always be aware of the amount they will receive at the end which can help them make deposits keeping in mind their retirement goals and needs.

An easy-to-use and hassle-free tool, Axis National Pension Scheme Calculator calculates the lump sum amount to be received just by entering a few basic details related to the scheme. Here is the compound interest formula to compute the NPS amount:

FV = P (1 + r/n) ^ nt

Here,

FV = Final Value

P = Principal Sum

r = Rate of interest per annum

n = Total number of times the interest compounds

t = Tenure

For example,

Suppose Ramesh is 34 years old and his monthly NPS contribution to Axis Bank is Rs.3,000. Assuming that the Rate of Interest (ROI) is 10% annually, he needs to add the pension amount for the remaining 26 years of his retirement. As per the NPS formula,

• The total principal amount invested till the age of retirement will be around Rs.9.36 lakh (approximately)

• The total sum to be received at the time of maturity will be around Rs.44.35 lakh (approximately)

Some of the important details required while calculation of Axis Bank NPS are as follows:

• Current Age of the Axis Bank National Pension Scheme holder

• Investment type to be made (that is, monthly or yearly)

• Amount to be invested

• Choice of NPS option (Auto or Active choice)

The Process to Invest in Axis Bank NPS Account

Axis bank is one of the leading private sector banks that offer an individual to buy the National Pension Scheme for both all citizens sector and corporate citizen sectors. Here is the process of how Axis Bank works while you invest in an Axis Bank NPS account:

• Visit the https://enps.nsdl.com/eNPS/NationalPensionSystem.html page

• Follow the guidelines for the registration process

• Choose the suitable option for registration

• Enter all the required details like,

• Name

• Address proof

• Aadhaar card

• PAN Card

• Mobile number

• Age

• Email ID, etc

• Fill in the OTP (One Time Password) sent on your registered mobile number

• Select the type of investment account as per your suitability

• Select the investment strategy whether Auto or Active choice

• Enter the nominee details

• Once the registration process is complete, now you can access the Axis NPS Account

• PRAN (Permanent Retirement Account Number) is generated after the registration process is completed

Eligibility Criteria for Axis Bank National Pension Scheme

The following is the eligibility criteria for this government-backed scheme:

• Citizens of India residing here can open an NPS account

• The minimum age criteria for opening a National Pension Scheme account is 18 years

• The maximum age criteria for opening a National Pension Scheme account is 70 years

• KYC Compliance is compulsory before applying for an NPS account 

• The applicant is not allowed to own more than 1 NPS account

Benefits of Axis Bank National Pension Scheme Account

NPS is very fruitful in the long run and hence every Indian citizen should invest in the full proof government-backed scheme for safeguarding their financial future.

Here are some of the top benefits offered under the National Pension Scheme:

1. Liquidity

   Liquidity can never be an issue under the National Pension Scheme as contributors contribute systematically. To avail of the liquidity benefit, all the investors need to do is to have any of the below-mentioned accounts. Also, with the following account, a unique Permanent Retirement Account Number (PRAN) is compulsory while attaining the liquidity benefits

   1. Tier-I Account

      • This account works as a pension account

      • Withdrawn can be made but are subject to specific restrictions

      • A minimum deposit of 500 rupees is required for opening this account

   2. Tier-II Account

      • This account works as a voluntary account

      • Liquidity is provided through withdrawals and investments

      • A minimum deposit of 250 rupees is required for opening this account

      • To open a Tier-II account Tier-I account needs to be active

2. Portability

   National Pension Scheme unlike any other pension plan available, provides seamless portability when it comes to transitions. If a person switches from one job to another or moves from one location in India to another, the transfer of the NPS Account will be carried smoothly online without any hassles or burdens. As it is a PFRDA (Pension Fund Regulatory and Development Authority) regulated scheme, transparency is guaranteed.

3. Flexibility

   NPS is very flexible in terms of choices. To avail flexibility benefit, NPS offers the following choices under the scheme:

   1. Auto Choice

      • A default option if investors are confused between choices

      • Allocation of assets is directly related to the age of the investor

      • As it is auto choice, the proportion cannot be decided by the investor

   2. Active Choice

      • Assets can be allocated between

      • Equity

      • Corporate Bonds

      • Government Securities

      • Allocation can be made in different classes according to the investors will 

      • Under the equity choice, a maximum of 75% can be allocated

      • Investors can switch between investment options and fund managers as and when required

4. Tax Benefit

   Income Tax Act 1961	Tax Benefits
   U/S 80CCD (1)	1.5 lakh of tax is deductible within the total ceiling Under Tier-I investment
   U/S 80CCD 1(B)	Up to Rs.50,000 is allowed as deductions towards Tier-I investment
   U/S 80CCD (2)	For Tier-I investment, deductions up to 14% for central government and 10% for the rest are eligible

   “Tax benefit is subject to changes in tax laws. Standard T&C apply.”

5. Withdrawal Benefit

   If the amount is withdrawn before 60 years of age

   • 20% of the total corpus shall be received

   • 80% shall be annuitized compulsorily

   If the amount is withdrawn at 60 years or later

   • 60% of the total corpus shall be received

   • 40% shall be annuitized compulsorily

   Payments under the National Pension Scheme can only be made in Indian Rupees

In The End!

National Pension Scheme is a great scheme that offers fixed income after retirement. The main aim behind NPS is to create a financial corpus for individuals after their retirement so that they can lead a happy and financially settled life.

Axis Bank NPS Calculator helps in knowing the contributions made under the scheme to date and planning your new investment accordingly so that the investor has a corpus as per their future needs. It is important to keep all the future aspects in mind before making any kind of investment.