Axis Bank NPS Calculator

What is the Axis Bank NPS Scheme?

Axis Bank NPS Scheme is essentially an account you can open with Axis Bank to participate in the National Pension System (NPS) launched by the Government of India. The NPS is a voluntary retirement savings scheme that helps you accumulate savings throughout your working life to provide you with a pension after retirement.

NPS Axis Bank works upon 2 main models:

• All citizens model – It includes all the Indian Citizens

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

What is the Axis Bank NPS Calculator?

Axis Bank NPS Calculator helps you estimate the potential retirement lump sum amount from your Axis Bank NPS Account. It ensures easy retirement planning by projecting future payouts based on individual contributions. With minimal input, the Axis NPS Calculator assists you in making informed decisions about the level of contributions and the choice of investment options within NPS.

What are the Steps to Invest in an 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. Follow these steps to start Investing in Axis Bank NPS:

• Open an account: Open an online NPS account through the Axis Bank website or visit the nearest branch.

• KYC Verification: Submit PAN, Aadhaar, etc.

• Select Pension Fund Manager: Choose from various pension fund managers like, LIC Pension Fund, UTI Retirement Solutions, or SBI Pension Funds.

• Choose investment allocation: You can allocate your investments among the E (Equity), C (Corporate Debt), and G (Government Bonds) funds.

• Start contributing: Minimum balance to invest in this best pension plan is Rs. 500.

• Maintain minimum balance: Rs. 1,000 annually.

How Does the Axis Bank NPS Calculator Work? 

The compound interest formula used in the NPS calculator axis bank to compute the NPS amount is as follows:

For Example,

Ramesh, who is 34 years old, contributes in his Axis Bank NPS Account as per the following details:

• Contribution Amount= Rs. 3,000 per month

• He plans his retirement age= 60 years

• Estimated annual interest rate= 10% p.a.

Here is what he can expect:

• Total amount he will invest by retirement: around Rs. 9.36 lakhs.

• Total amount he will receive at retirement: around Rs. 44.7 lakhs.

Axis Banks NPS Calculator Requirements

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

• Age

• Monthly Investment

• Expected Rate of Return

• Percentage of Amount Allocated for Pension

• Expected Return on Annuity

What is the Eligibility Criteria for NPS in Axis Bank?

The following is the eligibility criteria for NPS Axis Bank:

• Minimum age: 18 

• Maximum age: 70

• Indian residents are eligible for Axis Bank NPS

• KYC required for NPS in Axis Bank application

• One person, one NPS account

• NRIs can open an NPS Axis Bank account under the All Citizens Model.

What are the Benefits of an Axis Bank NPS Account?

Following are the benefits of an Axis Bank NPS Account:

• Flexible Contributions: Contributors can decide how much and how often to contribute, allowing for customization based on personal finances.

• Investment Options: Offers a variety of investment choices across stocks, bonds, and government funds, managed by experts to maximize returns.

• Systematic Savings: Promotes regular, long-term saving habits, ideal for securing a pension and steady income in retirement.

• Portable and Transferable: Easily transferable between jobs and locations, ensuring nationwide acceptance and hassle-free mobility.

• Regulated and Secure: Supervised by the Pension Fund Regulatory and Development Authority (PFRDA), guaranteeing secure online access and regular updates.

• Annuity Options: Requires buying an annuity to ensure regular post-retirement income, with various plans to suit individual preferences.

• Tax-Efficient Withdrawals: Permits partial withdrawals for specific needs, offering tax benefits on lump sum withdrawals at retirement.

• Low-Cost Structure: Features a cost-effective setup with competitive management fees, providing transparency for better financial decisions.

• Withdrawal Benefit:

  • Before age 60: Withdraw 20% as a lump sum and annuitize 80%.

  • At age 60 or later: Withdraw 60% as a lump sum and annuitize 40%.

Tax Benefits:

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

Conclusion

The Axis Bank calculator helps you in strategic financial planning, optimizing contributions, and maximizing returns. Axis Bank NPS ensures a secure and tailored approach to retirement savings, empowering individuals to achieve their financial goals efficiently.