Build a retirement corpus while saving extra tax. NPS is a government-backed voluntary pension scheme regulated by PFRDA.
The National Pension System (NPS) is a long-term investment tool focused on retirement. It allows you to invest in a mix of equity, corporate bonds, and government securities based on your risk appetite.
Upon reaching age 60, you can withdraw up to 60% of the corpus as a tax-free lump sum, while the remaining 40% is used to purchase an annuity for a regular monthly pension.
Open NPS AccountFinzoop is an authorized Point of Presence (POP-999888) for NPS services, ensuring a secure and 100% digital onboarding process.
NPS offers unique tax benefits not available with any other investment product.
Part of the overall ₹1.5 Lakh limit under Section 80C. Includes employee and self-contributions.
Exclusive to NPS. Additional deduction over and above the ₹1.5 Lakh limit of 80C.
Tax deduction on employer's contribution to NPS (up to 10% of basic + DA) with no upper cap.
Historical 10-year returns for Tier-1 (Equity Scheme E) accounts.
| Fund Manager | Equity (Scheme E) | Corp Bond (Scheme C) | Govt Sec (Scheme G) |
|---|---|---|---|
| HDFC Pension Fund | 14.2% | 9.1% | 8.8% |
| ICICI Pru Pension Fund | 13.8% | 8.9% | 8.7% |
| SBI Pension Fund | 13.5% | 8.8% | 8.9% |
| Kotak Pension Fund | 13.9% | 9.0% | 8.6% |
| UTI Retirement Solutions | 13.2% | 8.7% | 8.5% |
*Returns are indicative for 10-year period ending 2024. Past performance is not a guarantee of future returns.
Any Indian citizen (resident or non-resident) between the age of 18 and 70 years can open an NPS account. Overseas citizens of India (OCI) and PIO cardholders are also eligible.
Tier-1: Mandatory account for tax benefits and retirement. Withdrawals are restricted until age 60.
Tier-2: Voluntary savings account with no lock-in, but offers no tax benefits. You must have a Tier-1 account to open Tier-2.
The minimum initial contribution is ₹500 for Tier-1. To keep the account active, you must contribute at least ₹1,000 per financial year.
Partial withdrawals (up to 25% of your own contribution) are allowed after 3 years for specific purposes like higher education, marriage of children, construction of home, or critical illness. For full exit before 60, you must use 80% of the corpus to buy an annuity.
Active Choice: You decide the percentage allocation between Equity (E), Corporate Bonds (C), and Govt Securities (G).
Auto Choice: Your allocation is automatically adjusted based on your age, reducing equity exposure as you get older.