South Indian Bank National Pension Scheme (NPS)

What is the South Indian Bank National Pension Scheme?

The South Indian Bank National Pension Scheme (NPS) is a pension plan backed by the government. This scheme allows you to make voluntary contributions every year until you reach the age of 60, and uses the accumulated funds to pay a fixed pension afterwards. The returns generated under the NPS are market-linked, as the money is invested in equity instruments, government securities, and corporate bonds as per your choice. You can choose the auto choice option, where the money is invested as per your age, or you can go for the active mode and choose where your money is being invested.

NPS Calculator

Your Age

Years

18 Years 59 Years

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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%

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Expected Return from Pension

%

5% 15%

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₹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 South Indian Bank National Pension Scheme (NPS)

Here are the top features that make the South Indian Bank NPS scheme a unique investment plan for retirement.

• Well-Regulated Scheme: The NPS scheme is regulated by the Pension Fund Regulatory and Development Authority, also known as PFRDA. Every subscriber is assigned a unique Permanent Retirement Account Number or a PRAN to track their investments quickly and effectively.
• Online Management: You can manage your NPS accounts with South Indian Bank digitally with the NPS mobile app. You can view your account details, make contributions, change your scheme preferences, update your passwords, and request transaction statements.
• Complete Withdrawal Allowed After Death: In case of the death of the subscriber, the claimant can withdraw 100% of the corpus in a lump sum. You can invest in this scheme without worrying about the lock-in period in such unfortunate situations because of this provision.
• Compounded Returns: When you subscribe to NPS, you don't get the payout of any returns until the age of 60. However, this means the returns get reinvested in the asset classes of your choice, and your corpus fund keeps growing exponentially with the power of compounding.

Types of South Indian Bank NPS Accounts

The South Indian Bank National Pension Scheme (NPS) has a two-tier structure, with one retirement account for pension and one investment account for day-to-day expenses.

• Tier I NPS Account: This is an individual retirement account with restrictions on withdrawals before maturity. Contributions to this NPS account are eligible for tax deductions.
• Tier II NPS Account: This is your investment account, and you can only open it if you have an active Tier 1 account already. You can freely withdraw funds from this account, but the account offers no tax benefits.

Who is Eligible for the South Indian Bank National Pension Scheme?

The 'All Citizens' model of NPS is available for a wide variety of Indian citizens, whether they are salaried or self-employed. However, you must adhere to the following requirements.

• Citizens of India (residents and non-residents both) are eligible to invest if they are 18 to 70 years old. Overseas Citizens of India (OCI) are also eligible for this scheme.
• Subscribers must comply with Know Your Customer (KYC) requirements to be able to invest in this scheme.
• Subscribers are required to make a minimum initial contribution of Rs. 500 to open a Tier 1 account and of Rs. 1000 to open a Tier 2 account.

Charges Levied By South Indian Bank on NPS Accounts

South Indian Bank levies fixed charges on NPS transactions against the services provided by it. Here is a summary of the charges that you will need to pay along with your contributions.

Tax Benefits under the South Indian Bank National Pension Scheme

The South Indian Bank National Pension Scheme (NPS) has several great features, and its tax efficiency is an attractive one. The following income tax deductions are allowed for the contributions you or your employer make to your Tier 1 account.

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

You can subscribe to the South Indian Bank NPS scheme by submitting a physical application to a designated branch near you. You can download and print the application from their official website. 

You can also invest in the scheme online through the following steps.

• Go to the official website of South Indian Bank.
• Click on the 'Instant NPS Account Opening or Contribution' option under 'Online Services'.
• Click on the 'Registration' button.
• Complete the online application form with your personal details and upload digital copies of KYC documents like your PAN and Aadhaar.

Conclusion

The South Indian Bank National Pension Scheme (NPS) encourages you to start saving today to enjoy stability during your retirement years later. This scheme is ideal for people of any age, even beginners, because of its low minimum contributions and lenient withdrawal provisions.