Last Updated on August 3, 2023 by
What is NPS?
NPS is known as National Pension System. It is a retirement savings scheme. In this scheme, people who are earning can save a certain amount for their future while working anywhere. NPS is instilling a habit of savings for post-retirement. After retirement, everyone needs money to be secure. Such savings work as a backbone in our hard days. Day by day, medical expenses are rising, and apart from this, other unexpected expenses can also appear anytime.
The eligibility criteria for NPS is very simple. Employees between 18 to 60 years of working with corporate companies can be a part of NPS. KYC norms are mandatory to sign up for NPS. It is one of the best schemes to save money for the future. That’s why here we’ll talk about how we can get higher returns on our hard-earned money.
Benefits of NPS
NPS offers so many benefits. Let’s have a look at them.
- It is a voluntary system – Any subscriber can opt for NPS in a Financial Year. Subscribers can also change the amount of the savings every year.
- Account opening is so simple – To open the account, subscribers need to go to eNPS (https://enps.nsdl.com/eNPS/).
- It is very flexible – Subscribers can easily choose their investment options and pension fund. Subscribers can also see their money grow.
- The portable option is here – Subscribers can access their account anywhere, even from another city and employment.
- Trustworthy regulation – PFRDA regulates NPS and provides transparent investment norms and regular monitoring. Fund managers of NPS Trust review its performance.
Easy Funds Withdrawal
NPS has an effortless funds withdrawal system. Through an online system, investors can withdraw the funds with the help of their User ID & IPIN. The subscriber needs to put their User ID & IPIN in the CRA system. After logging in, subscribers can proceed with the request of withdrawal.
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NPS Pension Calculator
It is always advisable to check how the interest is calculated against our investment or fix the deposit amount. Here we can take help from the NPS pension calculator. It’s an easy method to calculate interest. The interest is calculated by multiplying the principal, interest rate, and tenor. The formula for Simple Interest (SI) is “principal x rate of interest x period divided by 100” or (P x Rx T/100).
Below is the step-by-step method to use the NPS calculator to the higher returns. Details are required to enter systematically.
Step 1:
Put Date of Birth (DOB). The NPS calculator will compute the number of years to calculate the interest based on the DOB.
Step 2:
Put in the investment amount you want to contribute every month.
Step 3:
Select the desired number of years to estimate the amount of investment.
Step 4:
Enter the percentage of the annuity amount.
Step 5:
Enter the expected annuity rate, i.e. the rate of interest.
Step 6:
Once you finish entering all the details, the National Pension Scheme calculator will calculate the estimated amount and the pension amount you’ll receive by the time of maturity.
Senior Citizen Fixed Deposit Scheme
Here we have the list of top banks giving the best deposit plan with flexible tenor and attractive rate of interest for senior citizens in India.
RBL Bank
1 Year 6.6% p.a., 3 Years 6.8% p.a. & 5 Years 7% p.a.
DCB Bank
1 Year 6.3% p.a., 3 Years 7% p.a. & 5 Years 7% p.a.
YES Bank
1 Year 6.5% p.a., 3 Years 7% p.a. & 5 Years 7.25% p.a.
Bandhan Bank
1 Year 6.25% p.a., 3 Years 6% p.a. & 5 Years 5.75% p.a.
Axis Bank
1 Year 5.75% p.a., 3 Years 5.9% p.a. & 5 Years 6.5% p.a.
