How to Invest in NPS Online - A Complete Guide

If you're wondering how to invest in NPS and create a secure financial cushion for your retirement, the National Pension System is a great option. NPS stands for National Pension System, a government-backed, market-linked retirement scheme where you contribute regularly to grow your savings over time. 

What is NPS (National Pension System)

The National Pension System (NPS) is governed by the Pension Fund Regulatory and Development Authority (PFRDA). This scheme/system allows individuals to contribute towards their retirement fund. Investing in NPS has become very easy due to the easy online access.

Read more - What is NPS?

TIn this article, we will explain how to invest in NPS online.

Types of NPS Account:

There are two types of NPS Accounts-

NPS Tier I and Tier II

1. NPS Tier I Account: The account is a primary and compulsory retirement savings account under NPS. The withdrawal restrictions are to be followed until retirement age. It focuses on long-term wealth accumulation and offers tax benefits.

2. NPS Tier II Account: The second account is the Tier II account, which is a voluntary savings account with no withdrawal restrictions. With this, you get more flexibility but without the tax benefits.

Both accounts can be opened together or separately, giving investors the freedom to customise their retirement planning.

Benefits of Investing in NPS

• Tax Benefits: You can save more with NPS. This is because it offers tax benefits since the contributions qualify for tax deductions under Section 80C and 80CCD(1B).

• Market-Linked Returns: NPS is a market-linked scheme, which means that the Investments are partly linked to equity and debt markets, hence, a chance to earn high returns.

• Flexibility: You can choose your investment mix and pension fund manager.

• Retirement Security: After your retirement, you can be sure to get a steady income stream for financial stability.

How To Invest in NPS Online with ICICI Bank

Here’s a step-by-step guide to help you get started and invest in NPS through ICICI Bank

You can enrol to an NPS using the below channels:

How to Invest in NPS Via iMobile App

1. Log in to iMobile: Download and log in using your bank customer ID and password via the App Store or Google Play Store.
2. Go to 'Invest': Select the 'NPS' tile.
3. On the next screen click on the "Invest Now” and choose Individual/Corporate Subscriber. 
4. Enter Details: Provide personal and on the next page fill your nominee details for the NPS account and then click proceed.
5. Next, you have to choose your fund manager and your scheme preference, and then click on submit.
6. Final step, Upload your photograph and signature and click on continue - then sent an OPT which you will fill in to complete your journey,
7. Confirm and Submit: Review the information and submit your application.

How to invest in NPS Via ICICI Net Banking

1. Log in to Net Banking: Access your bank's website and log in with your user ID and password.
2. Navigate to 'Investments and Insurance': Select 'National Pension System' under this section.
3. On the next screen choose Individual / Corporate Subscriber.
4. Enter Details: Fill in personal and nominee information.
5. Final step, Upload your photograph and signature and click on continue - then sent an OPT which you will fill in to complete your journey.
6. Confirm and Submit: Verify the details, submit the application, and track your NPS request.

How to Invest in NPS Offline via ICICI Branch

To open an NPS account with ICICI Bank offline, visit any of the bank's registered branches designated as Point of Presence Service Providers for offline investing. You can find the nearest branch for your convenience.

Bring your KYC documents to the branch and request an NPS registration form. Fill out the form with the required information and send it with a copy of your KYC documents. You will also need to pay the first deposit necessary to start an NPS account. After confirming your registration form and documentation, ICICI Bank will execute your request and successfully create your NPS account.

Things to keep in mind before investing in NPS

• Indian citizens between 18 to 70 years of age can open an NPS Account online

• NPS offers subscribers the flexibility to select their investment options

• Earn attractive market-linked returns 

• Account holders can operate their Account from anywhere in India

• Subscribers can switch between different funds

• Account holders can select or change their investment pattern, Fund Manager and Point of Presence (POP).

Conclusion:

Wish to save for a comfortable retirement? Start investing in NPS through ICICI Bank Net Banking and iMobile app. 

FAQs

 Is it safe to invest in NPS online?

Yes, investing in NPS online is 100% safe since it is a government-backed scheme. With ICICI Bank, you can get the ease to make NPS contributions via digital channels that offer the utmost security features.

Can I invest in NPS without a PAN card?

You need to have a PAN card to invest in NPS. It is an important document for investing in NPS as it is also needed for KYC verification and tax purposes.

Can I invest in NPS if I am self-employed?

Yes, self-employed individuals can invest in NPS. It offers flexible contributions and helps build a retirement corpus with tax benefits.

 What are the investment options available in NPS?

NPS offers two options. Active Choice, where you select your asset allocation, and Auto Choice, a lifecycle fund that adjusts allocation based on your age.

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