Understanding the National Pension System
The National Pension System (NPS) is an innovative solution by the Government of India, designed to provide financial stability and social security, especially to those in the unorganized sector. Through NPS, individuals have the opportunity to build a substantial retirement corpus by making regular contributions during their working years. Upon reaching the age of 60, participants receive a pension based on their accumulated savings. Managed by Karnataka Bank in collaboration with the Pension Fund Regulatory and Development Authority (PFRDA), NPS offers additional tax benefits, enhancing its appeal. It features two-tiered accounts with flexible withdrawal options, allowing subscribers to tailor their pension plans. This scheme not only ensures a steady income post-retirement but also gives peace of mind and financial independence to you as a subscriber.Read more
Designed for your golden years
Portable and regulated
NPS provides seamless portability across jobs and across locations, unlike all current pension plans. It provides hassle-free arrangement for the individual subscribers
Pension fund manager
Individuals can switch over from one investment option to another or from one fund manager to another, subject to certain regulatory restrictions.
Tax benefits
Claim a tax deduction up to 10% of the gross income under Section 80CCD (1) within the overall ceiling of Rs.1.5 lakh, under section 80CCE
Investment variety
Access a wide array of asset classes for investment and tailor your portfolio to match your risk appetite
Wide tenure
Keep contributing to your NPS account up to the age of 70, ensuring a larger corpus for your retirement
Tax-efficient withdrawal
Enjoy up to 60% of the corpus can be withdrawn tax-free at retirement.
Defer annuity optionally
Postpone receiving your pension up to three years beyond retirement age for a higher annuity
Be active or passive
Opt for active or auto choice in fund management to align with your investment style
Nationwide network
Access NPS services from any Karnataka Bank branch across the country with ease
Types of NPS accounts
Choose from Tier I & Tier II under the scheme
Tier I
- The Tier I NPS account is meant for subscribers to contribute their savings for retirement into a non-withdrawable account. These savings can include an employer’s contribution to NPS, in case of the corporate sector.
- This is mandatory to open in order to join NPS. Withdrawal from this account is conditional and restricted.
Tier II
- The Tier II NPS account is a voluntary savings account from which subscribers are free to withdraw their savings whenever they wish.
- An active Tier I account is a pre-requisite for opening a Tier II NPS account.
- Withdrawal from this account is permitted as per the requirement of the subscriber.
Explore our fund managers
Choose from our highly-experienced fund managers for your pension
Eligibility criteria
- Any Indian citizen, whether resident or non-resident/Overseas Citizen of India (OCI)
- Age must be between 18 to 70 years
- Maximum age up to which an NPS account can be continued is up to 75 years
- Join the NPS scheme either as employee-employer group(s) (corporates) or individuals
How to apply
Point of Presence - Service Providers
Any citizen of India between the age of 18 to 70 can open NPS account by visiting any POP-SP
Got questions? We’ve got answers.
Yes, you can change your type of savings account. Please visit the branch to change yoursavings account variant.
Yes, you can change your type of savings account. Please visit the branch to change yoursavings account variant.
Yes, you can change your type of savings account. Please visit the branch to change yoursavings account variant.
Yes, you can change your type of savings account. Please visit the branch to change yoursavings account variant.
Yes, you can change your type of savings account. Please visit the branch to change yoursavings account variant.
Yes, you can change your type of savings account. Please visit the branch to change yoursavings account variant.
Pension schemes are designed to provide financial security during retirement. They ensure a steady income stream post-retirement, helping maintain your standard of living. Pension schemes can be government-sponsored or privately managed, each offering various plan options to suit individual retirement goals. Investing in a pension scheme also encourages disciplined savings over a long period, which is crucial for a financially secure retirement. Additionally, contributions to certain pension schemes can qualify for tax deductions. The national pension system (NPS) is a long-term retirement-focused investment. Our nps scheme offers an opportunity to build a substantial retirement corpus with added national pension system benefits. Gain from the nps benefits and ensure financial security in your golden years.
In pension schemes, the return on investment is a critical factor. The returns can be fixed or market-linked, depending on the type of scheme. For example, government pension schemes like the National Pension System (NPS) offer market-linked returns, while traditional pension plans provide a guaranteed return. Understanding the return structure, associated fees, and the annuity options available upon retirement is essential.
Do start investing in a pension scheme early to maximize the benefits of compounding. Choose a scheme that aligns with your risk tolerance and retirement goals. Keep track of your contributions and performance. Don't ignore the scheme's terms, especially regarding withdrawal, maturity, and annuity options. Regularly review and adjust your investment choices based on changing financial goals and market conditions.
