NPS Interest Rate 2024: Dual Benefit of Tax Saving, Market-linked Returns to Build Retirement Corpus; Guide to Deposit Funds, Check Balance Online

nps interest rate 2024: dual benefit of tax saving, market-linked returns to build retirement corpus; guide to deposit funds, check balance online

NPS Account: The National Pension System (NPS) has emerged as one of the most popular investment options for someone seeking a low-cost investing opportunity with little time to monitor daily stock market movements or has little knowledge to trade stocks on the exchanges. At the same time, it also helps in saving big through tax deductions which may not be available in many of the mutual fund schemes for those investing regularly through Systematic Investment Plan (SIP). However, the stringent lock-in period until your retirement age at 60 may dissuade many investors but the government-backed retirement scheme’s benefits, interest rates and easy to manage online portal have encouraged many people to secure post-retirement life through this scheme that offers professional fund managers for your savings with little expense ratio as compared to mutual fund schemes.

NPS: How to Deposit Funds Online

1) Visit the eNPS website: Go to enps.nsdl.com.

2) Contribute Online:

– Log in to your NPS account.

– Select the ‘Contribution’ tab.

– Click on ‘Contribute Online’ under ‘Transact Online’.

– Enter your PRAN (Permanent Retirement Account Number) and Date of Birth.

– Choose whether you want to receive the OTP via SMS or email.

– Enter the captcha code and click on ‘Verify PRAN’.

– Once verified, select the account type (Tier I or Tier II) and enter the contribution amount.

– The system will calculate the total payable amount including charges.

– Select the payment gateway option and accept the declarations.

– Click on ‘Make Payment’.

– You’ll be redirected to the payment gateway site where you can pay using net banking, debit card, or credit card.

3) Payments via UPI:

– Download a UPI application from the App Store or your bank’s website.

– Register a UPI ID (VPA) of your choice, like abc@upi.

– Set an MPIN for transaction authentication.

– Link your bank account with the VPA.

4) To Contribute in NPS using UPI:

– Choose UPI as the payment mode.

– You can contribute up to Rs. 2000 (including charges).

– Provide your Virtual Payment Address (VPA).

– You’ll receive a payment notification on your UPI application.

– Log in to your UPI application and confirm the transaction within the specified time.

– Enter your MPIN to authenticate the transaction.

NPS Account: How to Check Balance

1) Log in to CRA Website

– Visit the CRA website and enter your credentials.

– Use your PRAN (Permanent Retirement Account Number) as USER-ID and your account password to log in to your NPS account.

2) View Your NPS Balance

– After successfully logging in, select the ‘Transaction Statement’ button.

– Then click on the ‘Holding Statement’ button.

– This will display your accumulated NPS balance.

3) Check Transaction Details

– Click on the ‘Transaction Statement’ button again to generate details of your transactions, including your contributions.

NPS Interest Rate 2024

The NPS interest rate usually ranges from 9 to 12 per cent, depending upon the fund manager chosen by you.

NPS Income tax benefits

An additional deduction for investment up to Rs. 50,000 in NPS (Tier I account) is available exclusively to NPS subscribers under subsection 80CCD (1B). This is over and above the deduction of Rs. 1.5 lakh available under section 80C of Income Tax Act.