India Post allows subscribers to open new NPS account and make subsequent contributions.

India Post under the Department of Posts, which runs the postal network of the country, also offers the facility of opening accounts under National Pension System (NPS). NPS or National Pension System is defined as a contribution pension system that provides social security to all citizens of the country. It is administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA). Under this system, contributions from subscribers along with matching contributions from respective governments as an employer, are collected and accumulated in an individual pension account, which is identified by Permanent Retirement Account Number (PRAN).

Given below are salient features of Post office National Pension System (NPS):

Services offered

India Post allows subscribers to open new NPS (all citizens model) account and make subsequent contributions. All types of service requests and exit / claim withdrawal requests are also offered, stated India Post its official website-indiapost.gov.in.

Eligibility

All citizens who do not come under any NPS sector and are aged between 18 and 64 years of age can open an NPS account with post office, it noted.

Types of accounts

There are two types of accounts that are opened under NPS: Tier I and Tier II. Tier I is a pension account and is mandatory. Tier II is a savings account and is optional.

Finance cap on NPS accounts

Minimum Initial Contribution with registration Rs. 500 (excluding taxes) Minimum Subsequent Contribution Rs. 500 (excluding taxes) Maximum Contributions No limit Minimum Contributions in a Financial Year Rs.1,000 in Tier I Minimum transactions in a Financial Year One

(As mentioned on indiapost.gov.in)

Transaction charges

Registration Charges Rs. 200 (excluding taxes) 0.25 % of the Contribution amount subject to minimum of Rs.20 (excluding taxes) and maximum of Rs.25,000 (excluding taxes) All Service Charges Rs 20 (excluding taxes) Payment mode Cash, Cheque, DD subject to realization

(As mentioned on indiapost.gov.in)

Income Tax benefits

There is an additional tax benefit up to Rs 50,000 for investment in NPS (All Citizen Model), said India Post.