Back to Blog
Are you thinking about your golden years? Dreaming of sipping your favorite drink on a sunny beach or pursuing your hobbies without the worry of financial constraints? We live in a fast-paced world, and everything is at our fingertips, from ordering a coffee to a new television set to a good luxury watch.
We search for the product online, order it, and receive our order. Everything is online, but what about when it comes to saving for your future or when you invest in the National Pension System, also known as the National Pension Scheme?
Let’s discuss its benefits in this blog before we highlight how to open an NPS account online.
The National Pension System Benefits
Transparency: NPS is regulated by the Government of India which provides transparent regulations governing activities.
Voluntary: It is a volunteer program available to all Indian citizens.
Flexible: In NPS, subscribers have the flexibility to choose or change fund manager, PoP (Point of Presence), and investment strategy.
Low Cost: NPS is one of the most affordable investment options.
Portability: NPS account or PRAN will remain same irrespective of change in employment, city or state.
Wondering how to open an NPS account online? It’s a simple method to choose your NPS investment. Follow these easy steps to apply for an NPS account.
How to open NPS account online
Step 1: Visit https://www.nps.kfintech.com/
Step 2: Look for the “Join NPS” button in the header and click it
Step 3: You will be redirected to the subscriber registration page
Step 4: Enter the following details:
- Your full name
- Your date of birth
- Mobile number
- Your PAN Number
- Email ID
- Application type
Click on ‘Create an account, and you will be redirected to the NPS page
Now that you have learned how to open an NPS account online, let’s have a look at the types of NPS accounts, briefly.
Types of NPS account
You have the option to open two sub accounts under the same Permanent Retirement Account Number (PRAN). These sub accounts are called as tiers in NPS:
Tier I: This is also known as a retirement account. Under section 80CCD (1B), you can take an extra deduction from your taxable income if you put up to ₹50,000 in this account. This is more than the ₹1.5 lakh cap set by section 80C. Withdrawals are limited and you need to follow certain rules.
Tier II: Subscriber is free to take out all of his or her money from Tier II at any time. If you haven’t put any money into your Tier II account, not even the original amount, it will be turned off automatically.
Conclusion
If you want financial freedom at your fingertips, it’s time for you to open an NPS account online. Remember, planning early for your golden years is the right way to go to achieve peace during your retirement. Identify your financial goals as well as the type of NPS account you want to invest in, and start contributing. The path to securing your future starts here.
