SBI NPS Calculator

One of the most renowned schemes launched by the Government of India for all its residents so that they have a safe and secure financial future even after retirement is the National Pension System or National Pension Scheme. NPS offers retirement benefits to all the sectors of society, be it unorganized or organized.

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NPS Calculator

Your Age

18 Years 59 Years
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Investment Per Month

₹500 ₹10L
Enter Investment Per Month

Expected Return on Investment

5% 20%
Expected Return on Investment
Total Investment
Interest Earned
Maturity Amount

Percentage of Corpus to be allocated for Purchase of Annuity

40% 100%
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Expected returns from the Annuity

3% 10%
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Lumpsum Amount
At age of 60 Yrs
Yearly Pension
For life time

The National Pension Scheme offered by the State Bank of India is completely regulated and administered by the Pension Fund Regulatory and Development Authority (PFRDA). Let us know more about the benefits, features, calculations, etc. of the State Bank of India's National Pension Scheme.

What is SBI NPS?

As per the rules, any Indian resident between the age of 18 years to 65 years can open an NPS account. An individual can opt for an eNPS account which can be opened with their Aadhar Card or Pan Card information. One of the specialized divisions of the PFRDA (Pension Fund Regulatory and Development Authority), National Pension Scheme is launched to financially safeguard the lives of Indian citizens after their retirement.

Shifted from only the public sector to every Indian citizen residing in India in the year 2009, the main objective of this scheme is to provide financial support to every citizen of India post-retirement age. It is a highly beneficial scheme as it offers financial security to the investor and their family with minimal investment amount.

What is SBI NPS Calculator?

The SBI National Pension Scheme Calculator helps in calculating the lump sum amount that an investor is expected to receive after their retirement age from SBI NPS investment. By putting in a few basic details of self and related to the scheme, the investor can easily compound the interest formula to compute the NPS amount:

FV = P (1 + r/n) ^ nt

Here,

FV = Final Value

P = Principal Sum

r = Rate of interest per annum

n = Total number of times the interest compounds

t = Tenure

For example,

Prateek is 34 years old man who has invested in the National Pension Scheme and his monthly contribution to the State Bank of India is Rs.3,000. Taking a hypothetical Rate of Interest (ROI) to be 10% annually, Prateek needs to add the pension amount for his remaining 26 years before retirement. As per the NPS formula,

  • The total principal amount invested till the age of retirement will be around Rs. 9.36 lakh (approximately)

  • The total sum to be received at the time of maturity will be around Rs.44.35 lakh (approximately)

Some handy information required while calculation of the State Bank of India’s NPS are as follows:

  • SBI National Pension Scheme holder’s current age

  • Choice of NPS option (Auto or Active choice)

  • Investment type to be made (that is, monthly or yearly)

  • Amount to be invested

Eligibility Criteria for SBI National Pension Scheme

The following is the eligibility criteria for this government-backed scheme:

  • An NPS account is operational for citizens residing in India only

  • 18 years is the minimum age criteria for opening National Pension Scheme Account

  • 65 years is the maximum age criteria for opening National Pension Scheme Account

  • The applicant is not allowed to own more than 1 NPS account

  • KYC Compliance is compulsory before applying for an NPS account 

The Process to Invest in SBI Bank NPS Account

Here is the process of how SBI bank works while you invest in a State Bank of India NPS account:

  • Visit the https://enps.nsdl.com/eNPS/NationalPensionSystem.html page

  • Follow the guidelines for the registration process

  • Enter all the required details like,

    • Aadhaar card

    • PAN Card

    • Name

    • Address proof

    • Mobile number

    • Age

    • Email ID, etc.

  • Fill in the OTP (One Time Password) sent on your registered mobile number

  • Select the type of investment account as per your suitability

  • Select the investment strategy whether Auto or Active choice

  • Enter the nominee details

  • Once the registration process is complete, you can access the SBI NPS Account

  • PRAN (Permanent Retirement Account Number) is generated after the registration process is completed

Features of SBI NPS Account

Here are some of the important highlights of the State Bank of India National Pension Scheme Account:

  • Tier-I account is compulsory to open for investment in SBI NPS

  • The minimum contribution to an open Tier-I account is Rs.500

  • Tier-II account can be opened only if the individual has a Tier-I account

  • Fund Management Charges for SBI NPS account 0.01%

  • SBI NPS Account offers attractive linked returns

  • Non-Resident Indians are not eligible for opening an NPS account

Benefits of SBI National Pension Scheme Account

NPS is a long-term investment scheme that is completely government-backed. National Pension Scheme is considered safe and hence protects the financial future of the employee after retirement without any hidden clauses.

Here are some of the top benefits offered under the National Pension Scheme:

  1. Tax Benefit

    Income Tax Act 1961

    Tax Benefits

    U/S 80CCD (1)

    For Tier-I investment, 1.5 lakh of tax is deductible within the total ceiling

    U/S 80CCD 1(B)

    For Tier-I investment, up to Rs.50,000 is allowed as deductions

    U/S 80CCD (2)

    For Tier-I investment, deductions up to 14% for central government and 10% for the rest are eligible

    “Tax benefit is subject to changes in tax laws. Standard T&C apply.”

  2. Liquidity

    National Pension Scheme is great for liquidity as the contributions made by the employees work systematically. An investor needs to have one of the following mentioned accounts to carry on NPS transactions. Also, with the following account, a unique Permanent Retirement Account Number (PRAN) is compulsory while attaining the liquidity benefits.

    1. Tier-I Account

      • Withdrawals are subject to specific conditions and restrictions 

      • Tier-I account works especially as a pension account

      • The minimum contribution to open a Tier-I account is Rs.500

    2. Tier-II Account

      • Tier-II account can be operational only if Tier-I account is active

      • Liquidity is provided through withdrawals and investments

      • The minimum contribution to open a Tier-II account is Rs.250

      • It is a voluntary account

  3. Flexibility

    National Pension Scheme works as per the general requirement of the employees in India and hence is considered to be very flexible. The following choices of investment are offered under the National Pension Scheme account:

    1. Auto Choice

      • It is a default option if the employee is confused between choices

      • The age of the investor is taken into consideration while allocating the assets

      • The investor has the right to select the proportion of investment under auto choice

    2. Active Choice

      Under the active choice, assets are generally allocated between,

      • Corporate Bonds

      • Equity

      • Government Securities

      • Allocation to be made as per the investors will

      • A maximum of 75% of asset allotment can be made under Equity

      • Switching between fund managers and investment options is on the investors will

  4. Portability

    Seamless portability is one of the biggest benefits of the National Pension Scheme when compared to other pension plans in the market. If a person switches from one job to another or moves from one location in India to another, the transfer of the NPS Account will be carried smoothly online without any hassles or burdens. As it is a PFRDA (Pension Fund Regulatory and Development Authority) regulated scheme, transparency is guaranteed.

In The End!

National Pension Scheme is a great scheme that offers fixed income after retirement. The main aim behind NPS is to create a financial corpus for individuals after their retirement so that they can lead a happy and financially settled life.

State Bank of India NPS Calculator helps in understanding the current financial standing of the investor and planning their further investments keeping in mind their future financial needs. It is important to keep all the future aspects in mind before making any kind of investment.

Written By: PolicyBazaar - Updated: 25 November 2021
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