Yes Bank National Pension Scheme (NPS)

What is the Yes Bank National Pension Scheme?

The Yes Bank National Pension Scheme (NPS) is a pension plan launched by the Indian government for salaried and self-employed Indian citizens. This scheme is regulated by the Pension Fund Regulatory and Development Authority, while Yes Bank acts as a POP (Point of Presence) to help subscribers invest in this scheme. You can make voluntary contributions to the scheme annually to accumulate a corpus fund over multiple years. The returns of this corpus get reinvested to give you higher returns through compounding. After superannuation, you can withdraw up to 60% of the corpus fund tax-free, leaving the balance 40% for annuity.

NPS Calculator

Your Age

Years

18 Years 59 Years

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Monthly Investment

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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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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 Yes Bank National Pension Scheme (NPS)

The Yes Bank National Pension Scheme (NPS) has several features that make it an attractive plan for retirement planning. Here are some important ones. 

• Flexible Scheme: When you invest in this scheme, you can choose your own pension fund, POP, investment mode (active or auto), and the contribution amount (subject to the minimum contributions specified). This makes the scheme a flexible investment option.
• Digital Subscription and Management: You can open NPS accounts digitally, 

through a simple online process. You can also manage your account online through the mobile banking app of Yes Bank.

• Affordable Investment Option: This scheme is among some of the lowest-cost pension plans across the globe, making it accessible for even low-income groups.
• Market-Linked Returns: Under the NPS scheme, the returns generated are linked to the market, making it possible to earn a high return on investment.

Types of Yes Bank NPS Accounts

The Yes Bank National Pension Scheme (NPS) has two account types- Tier 1 and Tier 2. While opening a Tier 1 account is mandatory for subscribing, Tier 2 accounts are optional.

• Tier 1 NPS Account: This is a permanent retirement account. You cannot withdraw funds from it except in specified situations. The minimum yearly contribution for this account is Rs. 1000 per year.
• Tier 2 NPS Account: Opening this account is optional, and you cannot do so without having an active Tier 1 account first. There is no minimum yearly contribution, and you can withdraw your funds freely.

Who is Eligible for the Yes Bank National Pension Scheme?

Discover the eligibility criteria for investing in the Yes Bank National Pension Scheme (NPS) to understand whether you can subscribe to the scheme.

• All Indian citizens, residents or non-residents, and Overseas Indian Citizens (OCI) are eligible for the NPS scheme.
• Citizens aged between 18 and 70 years are eligible for the Yes Bank NPS scheme.
• The subscriber must submit KYC documents, such as identity proof, address proof, and proof of date of birth, as required by Yes Bank.
• To open a Tier 1 Account, a subscriber must make an initial contribution of Rs 500. For a Tier 2 Account, a contribution of Rs 250 is mandatory initially.

Charges Levied By Yes Bank for the National Pension Scheme

Cost is an important concern when you are investing money for the long run. Here is a summary of the charges collected by Yes Bank for its services.

Tax Benefits Under the Yes Bank National Pension Scheme

Your contributions to a Tier 1 NPS account with Yes Bank are eligible for deductions under the Income Tax Act 1961. Here is a brief overview of the available deductions under both tax regimes.

Note: For the calculation of tax benefits mentioned above, 'Salary' means a total of basic salary and dearness allowance.

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

You can invest in the Yes Bank National Pension Scheme (NPS) at the nearest bank branch by submitting a paper application along with physical copies of important documents. You may apply to the scheme digitally with the following steps.

• Visit the official website of Yes Bank and open the NPS page.
• Click on the 'Apply Now' button and then select 'Register for NPS'.
• Get redirected to the National Pension System page of Yes Bank. 
• Click on the 'Registration' button at the bottom of the page.
• Fill the online NPS form by selecting the appropriate options.
• Upload required documents like your PAN, cancelled cheque, and photograph.
• Get redirected to a payment gateway to make a contribution to your NPS account. 
• You can e-sign your application or print and submit a signed copy to Yes Bank.

Conclusion

If you want a stress-free retirement, you must prioritise saving and accumulate a substantial retirement fund. The Yes Bank National Pension Scheme (NPS) is an excellent choice for this due to its affordable charges, government support, and strong historical performance. However, make sure you understand the scheme's qualifying requirements, withdrawal limitations, and other conditions before you invest.