Punjab National Bank National Pension Scheme (NPS)

What is the Punjab National Bank National Pension Scheme?

The Punjab National Bank National Pension Scheme (NPS) is a voluntary contribution pension plan. The funds contributed to this scheme are invested in equity instruments, government securities, alternative investment funds, and debt instruments. The proportion can be as per your choice (Active Mode) or as per your age group (Auto Mode). Punjab National Bank is one of the POPs (Point of Presence) for this government scheme, using its wide network of branches to facilitate the investments. The corpus fund created through the contributions and their compounded returns is used to pay a pension to the investors during retirement.

NPS Calculator

Your Age

Years

18 Years 59 Years

Enter Your Age

Monthly Investment

₹

₹500 ₹10L

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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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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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Features of the Punjab National Bank National Pension Scheme (NPS)

Here are the top features of the PNB NPS scheme that make it an ideal retirement plan.

• Accessible through All PNB Branches: You can contribute to the NPS scheme through every single branch of PNB. With a network of branches, the Punjab National Bank National Pension Scheme (NPS) is widely accessible.
• Flexible Scheme: When you invest in NPS, you can choose your own Point of Presence (PoP), Central Recordkeeping Agency (CRA), Pension Fund and Asset Allocation. Plus, your choices can be changed subsequently.
• Active Choice Available: You can choose the proportion of equity, debt, and other investments in your NPS portfolio. The maximum permitted investment is 5% in alternative investment funds and 75% in equity (for Tier 1 accounts only).
• Online and Offline Availability: You can register and contribute to NPS online through e-NPS or offline through the nearest PNB branch.

Types of Punjab National Bank NPS Accounts

You are allowed to open two types of NPS accounts: Tier 1 and Tier 2. Here is a brief introduction to each account.

• Tier 1 Account: While subscribing to NPS, you must open a Tier 1 account. This is a retirement account with limited withdrawal opportunities. After registration, you must make a yearly contribution of Rs 1,000 to this account.
• Tier 2 NPS Account: This is an optional account with unrestricted withdrawals and no minimum yearly contribution limit. You need to have an active Tier 1 account to open a Tier 2 account. Non-residents are not eligible for this account.

Who is Eligible for the Punjab National Bank National Pension Scheme?

The Punjab National Bank National Pension Scheme (NPS) is available to investors who meet the following criteria.

• Resident and non-resident Indian citizens who are 18 to 70 years old are eligible to invest in NPS. The age on the date of submitting of your application will be considered.
• To be eligible for this scheme, investors have to meet the Know Your Customer (KYC) norms as per the form.
• Investors must make a minimum contribution of Rs. 500 while opening their NPS Tier 1 account. A contribution of Rs 250 is mandatory for a Tier 2 account.

Charges Levied By Punjab National Bank on NPS Accounts

NPS is a low-cost scheme compared to similar pension plans available across the globe. Here is a summary of the charges collected by the PNB for NPS accounts.

Tax Benefits Under the Punjab National Bank National Pension Scheme

Tax efficiency is an important attribute of this scheme. Here's a glimpse into the available tax benefits.

Note: For the calculation of these deductions, 'Salary' refers to a total of basic salary and dearness allowance.

How to Invest in the Punjab National Bank National Pension Scheme? Step-by-step Guide

Here's how you can subscribe to the Punjab National Bank National Pension Scheme (NPS) online.

• Visit the official website of PNB.
• Go to the 'Products' section and click on the 'Government Business' option.
• Click on 'Other Products' and select 'National Pension System'.
• Select 'Subscriber Registration' under the 'For Registration' banner.
• Read the details of the registration process and click on the 'Registration' button at the bottom.
• Fill up the application form with your relevant personal information and upload the required KYC documents.

Conclusion

The Punjab National Bank National Pension Scheme (NPS) is a safe, transparent, and flexible investment plan for anyone planning for retirement. You can subscribe to this scheme irrespective of your income, since the POP charges and the minimum contributions are quite affordable. This scheme helps you build a habit of consistent savings and provides good returns in the long run through the power of compounding.