Bank of India National Pension Scheme

NPS Scheme Overview

The National Pension System (NPS) is a government-backed retirement plan scheme aimed at building a retirement corpus through regular investments. Offering market-linked returns during the accumulation phase, the NPS provides a source of lifelong income post-retirement in the form of a pension.

BOI NPS Calculator

Your Age

Years

18 Years 59 Years

Enter Your Age

Monthly Investment

₹

₹500 ₹10L

Enter Investment Per Month

Expected Return on Investment

%

5% 15%

Expected Return on Investment

Percentage of Corpus Allocated for Pension

%

40% 100%

Enter Corpus Percentage

Expected Return from Pension

%

5% 15%

Enter Annuity Return

₹0

Your Monthly Pension

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₹0

Your Monthly Pension

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Your Pension Calculation

Total Investment

Returns Earned

Maturity Amount

Maturity Amount split (Lumpsum & Pension)

60%

Lumpsum Amount

At the age of 60 Yrs

40%

Pension Wealth

At the age of 60 Yrs

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Bank of India NPS

The NPS scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), which authorizes financial institutions like Bank of India to act as Points of Presence (PoP) for offering NPS investments. This makes it convenient for customers to apply for the NPS Bank of India scheme through online or offline channels.

To invest online, visit the Bank of India official website. For offline applications, customers can visit designated Bank of India branches. The branch list is available on the NSDL website (https://www.npscra.nsdl.co.in/pop-sp.php).

Simply choose your state and location to view the list of branches that accept NPS subscriptions. At the branch, fill in the registration form, submit KYC documents, make your contribution, and pay the relevant charges. After verification, your Bank of India NPS account will be activated.

Eligibility Criteria to Open a BOI NPS Account

To invest in the Bank of India NPS scheme, individuals must meet the following criteria:

• Age Limit: 18 to 70 years.

• Residency: Indian citizens, NRIs, and OCIs can apply.

• Minimum Contribution: Rs. 500 for Tier I accounts and Rs. 1000 for Tier II accounts.

• KYC Compliance: Must adhere to the bank’s KYC norms.

• Required Documents: Identity proof, address proof, age proof, and photographs.

Features of Bank of India NPS

Here are some key highlights of the NPS Bank of India scheme:

• Regular Contributions: A minimum contribution is required annually until the age of 70.

• Account Types:

  • Tier I Account: Mandatory with restricted withdrawals except under specific conditions.

  • Tier II Account: Optional with flexible withdrawals, functioning like a savings account.

• Investment Allocation: Funds are allocated into equity (E), corporate debt (C), and government securities (G).

• Investment Strategies:

  • Active Choice: Choose asset classes manually.

  • Auto Choice: Funds are allocated automatically based on age.

• Fund Management: Choose among PFRDA-approved pension fund managers.

• Flexibility: Switch between investment strategies, funds (in Active Choice), and fund managers.

• Maturity: The scheme matures at 70 years, extendable by 10 years.

• Withdrawal Options:

  • Up to 60% of the accumulated corpus can be withdrawn as a tax-free lump sum.

  • The remaining funds provide a lifetime pension.

Tax Benefits Under BOI NPS

Investing in a Bank of India NPS account offers substantial tax benefits:

• Section 80CCD (1): You can claim a tax deduction of up to Rs. 1.5 lakhs on your contributions to the Tier I account.

• Section 80CCD (1B): Additional deduction of Rs. 50,000 for NPS Tier I Account contributions.

• Section 80CCD (2): Employer contributions (under the employer-employee model) are tax-deductible up to 10% of basic salary plus dearness allowance.

• Government Employees: Government employees can claim tax deductions on contributions to both Tier I and Tier II accounts in NPS.

Conclusion

The Bank of India NPS scheme is an ideal choice for building a secure retirement corpus while benefiting from lifelong pension income. With convenient application modes and attractive tax benefits, the scheme empowers investors to enjoy a financially independent retirement. Opt for the NPS Bank of India today and secure your future.