ICICI NPS Calculator

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

What is ICICI NPS?

The PFRDA (Pension Fund Regulatory and Development Authority) has come up with a scheme that offers benefits to all the Indian residents once they cross their retirement age, known as National Pension Scheme. Any individual aged between 18 years and 60 years can open the National Pension Scheme Account. An eNPS account can also be opened if you have Pan Card or Aadhar Card.

What is ICICI 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 ICICI NPS calculator is that an individual will always be aware of the amount they will receive at the end. This estimation can help them make deposits keeping in mind their retirement goals and needs.

An easy-to-use and hassle-free tool, ICICI National Pension Scheme Calculator calculates the lump sum amount to be received just by entering a few basic details related to the scheme. Some of the important details required while calculation of ICICI NPS are as follows:

• Current Age of the ICICI 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)

Why ICICI for NPS?

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

• Log in to the ICICIdirect.com account
• Subscribe to the account by creating your credentials
• Enter all the important details like
• Personal details
• Nominee details
• Select the scheme preference
• Enter the amount you are willing to contribute
• Submit all the authorization and declarations required by the ICICI bank
• Upload the required documents and eSign the forms
• Your ICICI NPS account is now activated
• Make payment and keep a check on your account from anywhere around

Eligibility Criteria for ICICI National Pension Scheme

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

• Citizens of India residing in India 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 65 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 ICICI 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

5. Deposit Benefit

   Deposit benefits under the National Pension Scheme are:

   • There is no fixed time to make financial contributions. Can be made any time of the year
   • The amount to be deposited is not fixed and can vary as per the contribution will of the investor

6. 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.

ICICI 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.