Open SBI NPS Account Online: National Pension System (NPS) is a defined contribution pension system introduced by the Government of India as a part of Pension Sector reforms, with an objective to provide social security to all citizens of India. It is administered and regulated by PFRDA.
In this article today we know about NPS, SBI NPS, How to open SBI NPS Account online, and SBI NPS Account Features, so read this article carefully.
SBI NPS Account
NPS: Full form of NPS is National Pension System. National Pension System (NPS) is a retirement scheme of the Government of India. Earlier it was started for the people of government jobs, but from 1 May 2009, the NPS facility was made available to all citizens. Its objective is to provide financial security to all citizens of the country after retirement. You can also open an account in it and plan for the future. It is very easy to open an account in it.
SBI NPS (National Pension System), administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA), is a voluntary, defined contribution retirement savings scheme. Its ultra-low cost (0.01% p.a; lowest management fee in the world), flexible, simple, & portable retirement solution.
Eligibility to open SBI NPS Account
The most important eligibility criteria for an individual to apply for the SBI NPS Account are:
>An individual should be between the age of 18 to 60 years.
>Identity Proof
- Photo Id proof
- Date of birth proof
- Address proof
- Application form
>In the case of SBI NPS Account Tier I type of NPS account:
- The minimum contribution for account opening is Rs.500
- The minimum amount payable for every contribution is Rs. 500
- The minimum Required Account Balance at the end of every financial year is Rs. 6,000
- There must be at least 1 minimum contribution during a year.
>In the case of SBI NPS Account Tier II type of NPS account:
- The minimum contribution for account opening is Rs.1,000
- The minimum amount payable for every contribution is Rs. 250
- The minimum Required Account Balance at the end of every financial year is Rs. 2,000
- There must be at least 1 minimum contribution during a year.
How to open SBI NPS Account Online?
Step 1: To open an online NPS account, you must have the net banking facility of SBI. For this, first, go to www.onlinesbi.com.
Step 2: After that enter your user ID and password and have to log in. After opening the onlinesbi homepage, go to the Payment and Transfer tab and select ‘NPS contributions’.
Step 3: In order to contribute to the NPS account, the necessary process has to be completed.
Step 4: Once the process is complete, the amount that has to be deposited in the account every month will be deducted from the bank savings account itself. Your contribution will continue till the age of 60 years after the account is opened.
How to get SBI NPS Account Benefits?
SBI NPS Calculator
Monthly investment in NPS: Rs 6000 (Rs 72,000 annually)
Total contribution in 30 years: Rs 21.60 lakh
Estimated return on investment: 8%
The total amount on maturity: Rs 90 lakh
Annuity Purchase: 50%
Estimated annuity rate: 6%
Maximum tax-free Withdrawal: Rs 54 Lakhs (60% of Maturity Amount)
Pension at the age of 60: Rs 22500 per month
One-time lump cash: 45 Lakhs
Note: We have considered the average age of the investor here to be 30 years. At the same time, it has made a monthly contribution of Rs. 6 thousand. Here we have done a calculation on purchasing an annuity with 50% of the amount on the NPS calculator. In National Pension System (NPS) It is necessary to buy an annuity of at least 40 percent in the plan.
Features of the SBI NPS scheme
- Tier I – Pension account (Mandatory A/C – Tax benefit available)
- Tier II – Investment account (Optional A/C – No tax benefit but corpus is withdrawable anytime) Rs. 50,000/- in a Financial Year.
- The minimum Contribution during A/C opening is Rs.500 for Tier I
- The minimum Contribution during A/C opening is Rs.1,000 for Tier II
- Minimum total contribution in a year Rs.1,000 (Min. amount per contribution Rs.500) for Tier I
- Minimum total contribution in a year N.A. (Min. amount per contribution Rs.250) for Tier II
- A very low-cost product with Fund Management Charges of 0.01%.
- Attractive market-linked returns
- The flexibility of Investments– Subscribers may select a Pension Fund Manager (PFM) of their choice. Subscriber is allowed to change PFM once during a Financial Year. Subscribers may also define their asset allocation, which may be changed twice in a given Financial Year.
- Portable across jobs and geographies.
- 24 X 7 X 365 through the Web & Mobile App of the Central Recordkeeping Agency (CRA)
- One-time shift to NPS- Existing corpus under Superannuation can one-time be transferred to NPS without any Tax Incidence
- Continuation in NPS scheme post retirement – Provision to contribute till 70 years or to defer withdrawal up to the age of 70 years.
- Complete withdrawal for corpus less than Rs.2 lacs – In case the total accumulated corpus is less than Rs.2 Lacs upon attaining the age of 60 or later, the subscriber may withdraw the entire corpus.
How to make SBI NPS subsequent contributions
Subscribers can apply for NPS through the below-mentioned routes:
- Online Mode: Subscribers may visit www.onlinesbi.com and click on ‘NPS Contribution’, which is available under the ‘Payments/ Transfers’ menu.
- Offline Mode: Subscriber may visit the nearest registered State Bank of India branch for NPS and submit NPS Contribution Instruction Slip (NCIS) along with the contribution amount.
Standing Instruction (SI)
Standing Instruction (SI) functionality is available to the average cost of purchase just like the Systematic Investment Plan (SIP) facility in Mutual Funds. Interested subscribers can give SI/ Auto Debit instructions for processing their monthly contributions either online through the ‘NPS Contribution’ menu available at www.onlinesbi.com or by submitting a physical request form to a registered Bank branch for NPS. SI request form may be downloaded by clicking on the link below.
Download the SBI NPS SI Request Form
FAQ Of SBI NPS Account
Yes, You can Easily Open Sbi NPS Account Online but, you have must SBI Net Banking
SBI NPS (National Pension System), administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA), is a voluntary, defined contribution retirement savings scheme. Its ultra-low cost (0.01% p.a; lowest management fee in the world), flexible, simple, & portable retirement solution.
According to the SBI website, if you have opened a Tier-1 account, then you get tax exemption under Section 80 CCD (1B) of Income Tax on the subscription of Rs 50,000, excluding tax saving provisions.
Similarly, for investments (basic salary + 10 percent of DA) within the total limit of Rs 1.5 lakh, there is a tax exemption under 80 CCE. There is a provision of a tax deduction (basic salary + DA) up to 10 percent of salary under 80 CCD (2) without any monetary limit.
You may fill up an application online for registering NPS. The process in brief would be as follows:
Fill up and submit the required details online.
Print the Account Opening Form(AOF) on A4-size white paper.
Attach the required documents, such as photographs and proof of identity and address, as mentioned in the AOF.
A TPRN(Temporary Pension Reference Number)will be generated, which please note down.
Pension Fund Managers
Returns*
SBI Pension Fund
8.26%
9.73%
ICICI Pension Fund
9.56%
9.30%
Kotak Mahindra Pension Fund
9.30%
9.28%
Reliance Pension Fund
7.51%
9.15%
In order to avail the benefits of having a National Pension Scheme SBI account, follow the steps given below to open an NPS account in SBI online:
Visit the official website of the National Pension System Trust
Go to National Pension System and select Registration to reach the Online Subscriber Registration page
Select new registration and enter the required details including your PAN number and the POP-SP bank
Select ‘State Bank of India’ among the list of banks
You will receive an OTP on your registered mobile number
Enter your personal details in the form along with OTP and generate an acknowledgment number
Choose SBI Pension Plan amongst the various pension funds listed by the NPS
Select the mode of investment between auto and active mode
Assign one or more nominees who will receive the corpus in case of your death
Upload your passport-size color photo along with the scanned image of your signature and the canceled cheque from your bank account
Make the initial subscriber contribution for your SBI NPS account. The payment can be made online using debit, credit card, or net banking
A PRAN number will be generated on successful payment along with the payment receipt
On the next page, take a printout of the completed form, paste a passport-size photo and send it to the CRA office within 90 days
If you opt for ‘e-sign with Aadhaar’, an OTP will be sent to your registered mobile number
Enter the OTP to get your Aadhaar authenticated and your registration signed electronically
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