UCO Bank National Pension Scheme (NPS)

What is the UCO Bank National Pension Scheme?

The National Pension Scheme is a government pension plan designed to help Indian citizens build a corpus fund for their retired life. This scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), and the services are offered through Points of Presence (PoP) like UCO Bank. You can make voluntary contributions to the UCO Bank National Pension Scheme (NPS) until you attain the age of 60, and the accumulated funds will be used to pay you a monthly pension afterwards. 

NPS Calculator

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Years

18 Years 59 Years

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₹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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Maturity Amount

Maturity Amount split (Lumpsum & Pension)

60%

Lumpsum Amount

At the age of 60 Yrs

40%

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At the age of 60 Yrs

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Features of the UCO Bank National Pension Scheme (NPS)

The UCO Bank NPS scheme caters to salaried as well as self-employed individuals looking to build a steady post-retirement income. Here are some key features of the scheme.

• Market-based Returns: Despite being a government scheme, the NPS interest rates are market-linked due to the investment in equity, corporate debt instruments, and even alternative investment funds.
• Accessible Scheme: UCO Bank offers NPS services through 1851 designated branches spread across India. This wide network makes the UCO Bank National Pension Scheme (NPS) easily accessible for Indian citizens.
• Active vs Auto Choice: You can decide which asset classes you would prefer to have in your NPS portfolio through the active choice option. Alternatively, you can opt for auto choice, where the funds are invested in different asset classes automatically based on your age.
• Option to Choose Your Fund Manager: You can choose any pension fund manager out of the eight options available. If you do not want to choose your own fund manager, you can also choose the default option.

Types of UCO Bank NPS Accounts

UCO Bank offers two categories of NPS accounts for investors. Here is a brief overview of both accounts.

• Tier 1 NPS Account: This is a mandatory and non-withdrawable retirement account. You can withdraw funds based on the exit conditions specified under the scheme. Contributions to this account are eligible for income tax deductions.
• Tier 2 NPS Account: This is an optional account that you can open along with a Tier 1 Account. You are free to withdraw your funds from this account. The contributions to this account are not eligible for income tax deductions.

Who is Eligible for the UCO Bank National Pension Scheme?

Check the eligibility requirements specified by UCO Bank for investing in the UCO Bank National Pension Scheme (NPS) to understand whether you can invest in it.

• Indian Citizenship: Any Indian citizen can invest in NPS, whether they are resident or non-resident in India.
• Age: Citizens aged between 18 and 60 years are eligible for UCO Bank NPS.
• KYC Requirements: You must submit documents like identity proof, address proof, and proof of date of birth as per the requirements specified by UCO Bank.
• Minimum Contribution: To open a Tier 1 Account, you must make an initial contribution of Rs 500. For a Tier 2 Account, a contribution of Rs 1000 is mandatory initially.

Charges Levied by UCO Bank on NPS Accounts

Your accumulated NPS corpus is the total of your contributions and their capital growth, reduced by the bank charges. Here is a summary of the charges levied by UCO Bank.

Tax Benefits under the UCO Bank National Pension Scheme

You can claim income tax deductions based on the contributions made to your Tier 1 NPS account during a financial year. Here are the details of the tax deductions.

Note: For the calculation of NPS-related deduction, 'Salary' means a total of basic salary and dearness allowance.

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

You can invest in the UCO Bank National Pension Scheme (NPS) by downloading the NPS scheme form available on their website and submitting it to the nearest designated branch. However, to invest in NPS online, you must go through the following steps.

• Visit the official website of UCO Bank.
• Go to the 'Invest' section and select 'NPS'.
• Click on the 'NPS Subscribe Registration' button.
• Get redirected to the National Pension System page of UCO Bank. 
• Click on 'Registration'.
• Complete the displayed form by selecting the appropriate options and entering your personal information.
• Authenticate the form by providing a one-time password.

Conclusion

If you are planning for your retirement, the UCO Bank National Pension Scheme (NPS) is a great investment plan. The minimum required contributions are low, the facilitation charges are affordable, and the compounding benefits offer an excellent growth opportunity.