Monthly Income Plans

With taxation on EPF interest should you move your investments to mutual funds or NPS?

What is the first investment option that comes to the mind of any salaried person? It is undoubtedly EPF. Employees Provident Fund (EPF) has long been a preferred investment option of the salaried class in India.

Multiple benefits like tax exemptions, building a corpus fund for retirement benefits, etc. and easy deductions from the salary of the person make it a very lucrative and easy investment destination. Another important advantage of EPF is that it belongs to the  Exempt-exempt-exempt (EEE)  category where the contribution made, the interest earned and the amount received at the end of maturity is not taxable under the Income Tax Act, 1961. 

Recent amendments to EPF in Budget 2021 and its impact on investors

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TERMS OF SERVICE FOR NATIONAL PENSION SYSTEM

TERMS OF SERVICE FOR NATIONAL PENSION SYSTEM

THIS DOCUMENT IS AN ELECTRONIC RECORD IN TERMS OF THE INFORMATION TECHNOLOGY ACT, 2000 AND RULES THEREUNDER AS APPLICABLE AND THE PROVISIONS PERTAINING TO ELECTRONIC RECORDS IN VARIOUS STATUTES AS AMENDED BY THE INFORMATION TECHNOLOGY ACT, 2000. THIS ELECTRONIC RECORD IS GENERATED BY A COMPUTER SYSTEM AND DOES NOT REQUIRE ANY PHYSICAL OR DIGITAL SIGNATURES.

THIS DOCUMENT IS PUBLISHED IN ACCORDANCE WITH THE PROVISIONS OF RULE 3(1) OF THE INFORMATION TECHNOLOGY (INTERMEDIARIES GUIDELINES) RULES, 2011 THAT REQUIRES PUBLISHING THE RULES AND REGULATIONS, PRIVACY POLICY AND TERMS OF USE FOR ACCESS OR USAGE OF THE PLATFORM.

The online platforms – www.finity.in (“Website”), and the iOS and Android mobile application – “Finity” (“App”) is owned and operated by Finwizard Technology Private Limited, a private limited company incorporated under the Companies Act, 2013 with its registered office at  Queens Paradise, 1st Floor, Curve Road Shivajinagar, Bangalore- 560052, Karnataka, India (“Finity”). The App and the Website shall be collectively referred to hereinafter as the (“Platform”). 

Finity has been appointed by Pension Fund Regulatory and Development Authority (“PFRDA”) to act as one of the online Point of Presence (POP) for National Pension System (“NPS”). NPS is a voluntary, defined contribution retirement savings system.

Your access and use of the Platform to facilitate availing NPS shall be subject to the applicable rules, regulations, guidelines issued by PFRDA, NPS and/or any other applicable regulatory and statutory bodies from time to time and also subject to the Terms and Conditions mentioned below and the Grievance Redressal Policy available at: [here] (“Pension Service(s)”).

Please read these Terms and Conditions (“Terms”) carefully before accessing or using the Platform or any part thereof to avail the Pension Services. By accessing or using any part of the Platform to avail Pension Services, you agree to be bound by these terms and conditions. If you do not agree to all the terms and conditions, then YOU MAY NOT ACCESS THE PENSION SERVICES FACILITATED BY FINITY.

Subject to the foregoing, this Terms shall be read in conjunction with the General Terms and Conditions of the Platform available at [here ] , shall govern your access and use of the Platform with respect to the Pension Services available on the Platform

1. ELIGIBILITY

You represent and warrant that you (a) are at least 18 years old; (b) competent to form a binding contract under the Indian Contract Act, 1872; (c) will comply with the Know Your Customer (“KYC”) norms as detailed in the subscriber registration application form. You understand and agree that all the documents required for KYC compliance need to be mandatorily submitted; and (d) have not previously been suspended or removed from using Finity’s services and/or the Platform or any part thereof.

 

2. YOUR ACCOUNT

If you wish to use the Platform, you are required to maintain an account on the Platform (“Account”) and you will be required to furnish certain information and details, including your name, email id, contact number, financial information, and any other information deemed necessary by Finity. 

You further understand that you are responsible for maintaining the confidentiality and security of your Account including log-in details and the password. You agree to accept responsibility for all activities that occur through your Account. You should take all necessary steps to ensure that the password is kept confidential and secure and should inform Finity immediately if you have any reason to believe that your password has become known to anyone else, or if the password is being, or is likely to be, used in an unauthorized manner. 

You represent and warrant that all information, data and documents provide by you (a) for creating of the Account; and/or (b) through your Account are true, correct, accurate and up to date. In the event of any change, you agree to update the details on the Account in a prompt and swift manner. You further represent and warrant that at the time of making any new Account, you do not currently have an existing account on the Platform.

 

3. PROHIBITED USES

You shall not use or access the Platform or any service: 

  1. for any unlawful purpose;
  2. to solicit others to perform or participate in any unlawful acts; 
  3. in a manner so as to violate any international, federal, provincial or state regulations, rules, laws, or local ordinances in India; 
  4. in a manner so as to infringe upon or violate Finity’s intellectual property rights or the intellectual property rights of others; 
  5. to harass, abuse, insult, harm, defame, slander, disparage, intimidate, or discriminate based on gender, sexual orientation, religion, ethnicity, race, age, national origin, or disability; 
  6. to submit or create false or misleading information; 
  7. to upload or transmit spam, viruses, or any other type of malicious code that will or may be used in any way to adversely affect the functionality or operation of the service or of any related website, other websites, or the Internet; 
  8. to harvest or collect any information of the users of the Platform, including using any robot, spider, site search or retrieval application, phishing, or other manual or automatic device or process to retrieve, index or mine data; 
  9. for any obscene or immoral purpose; or 
  10. to interfere with or circumvent the security features of the service or any related website, other websites, or the Internet. 

 

4. LICENSE BY FINITY

  1. All intellectual property in or of the App and Website belongs to or is licensed to Finity. Finity grants you a limited, non-transferable and revocable license to access and use the Platform or any part thereof for availing the services, but not to download any material from it (other than page caching) or modify it, or any portion of it for commercial use. Any unauthorized access to the Platform (or any part thereof) or any networks, servers or computer systems connected to the Platform and any attempt to modify, adapt, translate or reverse engineer any part of the Platform or re-format or frame any portion of the pages of the Platform is not permitted without Finity’s express written consent. 
  2. This license is non-transferable and does not permit any resale or commercial use of this Platform or its contents; any downloading or copying of account information for the benefit of anyone other than your use; or any use of data mining, robots, or similar data gathering and extraction tools. 
  3. The Platform or any portion of the Platform (including but not limited to any copyrighted material, trademarks, or other proprietary information) may not be reproduced, duplicated, copied, sold, resold, visited, distributed or otherwise exploited for any commercial purpose without express written consent of Finity, as may be applicable. Any unauthorized use of the Platform shall terminate the permission or revoke the license granted by Finity herein. 

 

5. THIRD PARTY MATERIAL AND SERVICES

Finity may provide you links to third party services (“Third Party Services”) and may display, include or make available content, data, information, applications or materials from third parties (“Third Party Materials”). You acknowledge and agree that Finity is not responsible for examining or evaluating the content, accuracy, completeness, timeliness, validity, copyright compliance, legality, decency, quality or any other aspect of such Third-Party Materials or Third-Party Services. FINITY DOES NOT WARRANT OR ENDORSE AND DOES NOT ASSUME AND WILL NOT HAVE ANY LIABILITY OR RESPONSIBILITY TO YOU OR ANY OTHER PERSON FOR ANY THIRD-PARTY SERVICES, THIRD PARTY MATERIALS OR WEB SITES, OR FOR ANY OTHER MATERIALS, PRODUCTS, OR SERVICES OF THIRD PARTIES. 

 

6. DISCLAIMERS

TO THE MAXIMUM EXTENT PERMITTED UNDER LAW, Finity, its affiliated companies, subsidiaries, officers, directors, employees or any related party disclaim any liability to you or to any third party for any indirect, incidental, special or consequential damages or any loss of revenue or profits arising under or relating to these Terms. 

TO THE MAXIMUM EXTENT PERMITTED UNDER LAW, you waive, release, discharge and hold harmless Finity, its affiliated and subsidiary companies, and each of their directors, officers, employees, and agents, from any and all claims, losses, damages, liabilities, expenses and causes of action arising out of your use of the Website, App and/or Pension Services.

 

7. INDEMNITY 

You agree to indemnify, save, and hold Finity, its affiliates, contractors, employees, officers, directors, agents and its third party associates, licensors, and partners harmless from any and all claims, demands, losses, damages, and liabilities, costs and expenses, including without limitation legal fees and expenses, arising out of or related to your use or misuse of the Pension Services or of the Website or App, any violation by you of these terms, or any breach of the representations, warranties, and covenants made by you herein or your infringement of any intellectual property or other right of any person or entity, or as a result of any threatening, libellous, obscene, harassing or offensive material posted/ transmitted by you on the Website / App. 

 

8. SUSPENSION OF ACCESS

Finity may choose to stop providing Pension Services hereunder and may terminate access to or use of the Platform at any time without any notice. Other than where Finity informs you otherwise, upon any termination, (a) the rights and licenses granted to you under these terms will end; (b) your Account shall be suspended; and (c) you must stop using the Platform. Finity reserves the right to suspend or cease providing any Pension Service and shall have no liability or responsibility to you in any manner whatsoever if Finity chooses to do so.

 

9. PRIVACY

Finity will collect, store and disclose your information in accordance with the Privacy Policy available at https://www.Finity.com/privacy/. In particular and without limitation, Finity will share your information with NPS and funds to provide you with the Pension Services hereunder. 

 

10. APPLICABLE LAWS 

Your use of this Platform and any terms and conditions stated in this agreement is subject to laws of India. In case of any disputes arising out of the use of the Platform or any part thereof, Courts of Bangalore, India will have exclusive jurisdiction.

 

11. GRIEVANCES

You can reach out to Finity at Grievance@Finity.com to raise any questions, complaints, grievances or feedback. 

NPS – landing page

The National Pension Scheme is initiated by the Government of India to provide pension opportunity

to every Indian citizen and help cultivate the habit of saving for retirement.

Benefits of National Pension Scheme (NPS)

Save additional tax up to ₹ 15,480
under Section 80CCD(1B)
Withdraw money after 60 years
of age for a secure future
Earn up to 12% returns on your
investment without taxation
 Regulated by Govt. of India (PFRDA)
with strict investment norms
Invest in NPS

Learn more about NPS

Gift Yourself A Happy Retirement: National Pension Scheme

Save Tax now in minutes with Finity App

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Retirement Plan

Retirement: Not an end, but a new beginning

 

Many will plan for retirement but still, there are people who want to work till they die. It sounds good. What if things go wrong? There are two things: one- your health, two- the ability to work. Your aging body can lower your immunity and can reduce the work you do. As you age, you might feel difficult to cope up with the new skills which earn your bread.

So, it is better to have a plan for retirement to set yourself financially free. “Financially free – where you don’t need to work to pay your bill and have enough assets that earn you returns for today and for the rest of your life”.

You can be financially free only if you have answers to these questions:

  1. How can you plan for your retirement?
  2. How much is enough?
  3. How can you know that you are on track?

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How to plan your retirement?

Retirement

“Old age is like everything else. To make a success of it, you’ve got to start young.”

-Theodore Roosevelt

In India, the most common beverage consumed is a cup of hot tea. It is served in the house, every morning, evening and sometimes even at night. A cup of hot tea is comforting and each person has their own way of making tea depending on their tastes. Such is the case of saving money. Many people do it in a different way. Now one of the most mundane of all saving is that of retirement. When approached with the subject people wave it off saying they’ll probably never retire or they will be well taken care of by their dependents. But like they say, your parents are not your emergency fund and your children are not your retirement fund. That’s why planning for your savings is crucial for maintaining your lifestyle even after you retire at that time.

So how does a person begin to plan for retirement? Well, there are two important points to keep in mind:

  • Your Spending

Every person’s individual spending habits vary. Some spend on food while others spend on clothes, some spend on their trips to exotic places while others spend on furnishing their dream home. One of the most important things to remember is that what you spend now will only increase in the years to come thanks to the constant inflation. So, in order to plan for what you spend after you retire to take a hard look at how much you spend these days. Try and anticipate how it will grow over the years while taking into consideration the inflation in the market. An easy way to do this is using the Rule of 72 which states that if you want to know how long it will take to double your money at 6% interest(inflation), divide 72 by 6 and get 8 years. Knowing this will instantly give a clear picture on what you need to do rather than leaving it up to chance to figure it out.

  • Your Saving

Now it comes down to how much a person must save. Many already have savings like FDs and Provident Funds so it can vary in terms of that. But when it comes to stocking up for your retirement there is a formula that will work wonders for you. Based on the age you are you save up that percentage of your income (after taxes). If you are 25 you should put away 25% of your income, if you are 30 you must put away 30% of your earnings. This should begin as early as you start to earn right until you are 55 or 60 years old.

Say you are 65 when you finally give yourself a break and want to sit back and take the load off. You will have children who take care of you and dependants that are always with you. Would it be better to still be standing on your own and do whatever you want rather than be totally dependant on others? You can use the money to pay your bills, go on that trip you planned for, buy your dream house, even pay for your dependent’s emergency needs at times.

Retirement isn’t just another option, it’s a need. So don’t delay, choose a way to save up for your retirement. The money you save today is like a bag of tea that is stored up until the right time. When you finally retire you can have a hot cup of strong tea. However, if you don’t plan for it and save up, you will have only a weak tea that gives no energy or comfort whatsoever.

Do not make your term plan costlier by delaying! Make all these benefits your own today!

Secure family future

Benefits of term insurance

 

Looking for Retirement Plans? Choose from the two Government initiatives, NPS or SCSS

Retirement

“Retirement is when you stop living at work and start working at living.”

A frequent question in the minds of people today is: Do I have enough funds to retire? What will I do when I retire?

The whole point of getting high degrees, building a decent career, aiming for high salaries, saving incomes, making a wise investment and various other activities in our life are done with the intention to have a peaceful lifestyle once we retire.

We commonly hear our parents say, “I don’t want to be dependent on my children when I retire” or “I want to go on a European trip when I retire” and many such aspirations. Some have financial desires and some just want to be financially independent rather than being a burden to anyone.

Besides, retirement is a stage everybody goes through in their life, be it a government or a non-government employee.  

To provide for all these needs, it is genuine that retired or senior citizens wish for post-retirement income. This is when small saving schemes provided by the Government of India becomes absolutely necessary.

One such Scheme is:

“Senior Citizen Savings Scheme”.

The Senior Citizens Savings Scheme (SCSS) is a scheme protected and backed by the Government of India to provide regular income for senior citizens of India. Since it is provided by the Government, this scheme is a risk-free tax saving investment, which is generally preferred amongst the retired audience.

“National Pension System (NPS)”

The National Pension System (NPS) is yet another instrument provided by the Government of India, with the intention to provide pension opportunity to every Indian and to inculcate the habit of saving especially for retirement.

This article aims at answering a few typical questions that senior citizens would have about SCSS and why one should consider NPS as a better option.

Who can invest in these instruments?

  • One has to be a citizen of India to be eligible for SCSS.
  • Must fulfill any one of the below age criteria:

a). Senior citizen aged 60 years or above.

b). Retirees who have opted for the Voluntary Retirement Scheme (VRS) or Superannuation with the age between 55-60.

c). Retired defense personnel with a minimum age of 50 years.

Note: HUFs and NRIs are not allowed to invest in this scheme.  

With NPS, the criteria are simple: Any person between the age of 18 – 65 years can open an NPS account.  

What should my investment amount be?

  •    The minimum amount required for an investment in SCSS is Rs.1000.
  •    The maximum amount should be the lower of the two:
  1. An individual can invest up to 15 lakhs
  2. An individual can invest the amount received as a retirement benefit.

If it’s a joint account with a spouse, then the maximum amount is 30 lakhs.

The investment amount of NPS varies between 500 to 1000, depending on the type of NPS (Tier 1 or Tier II) you belong to. And there is no upper limit to the amount you can invest in NPS. Read More on: Types of NPS options?

The investment should be done by cheque or cash?

The SCSS account can be opened by cash or cheque. In the case of cash, the amount is below Rs.1 lakh and by cheque, the amount is above Rs.1 lakh.

You can invest in NPS within minutes using the paperless process of Finity. All you need is to key in information with the amount you can invest and Finity shows you the top recommended funds.  

What is the tenure of my investment?

The tenure for SCSS is 5 years. However, an extension of another 3 years is permitted.

An extension of three years is possible only on completion of the 5-year tenure. In addition, the investor needs to submit the duly filled Form B, which is regarding the extension of the scheme.

Note: Only one extension is allowed. But after one year, extended accounts can be closed and there would be no penalties charged for it.

With  NPS, there is of fixed maturity tenure and one can contribute to the account till the age of 70.

When can I withdraw my money?

The ideal withdrawal of funds for SCSS is after the tenure of the investment. However, premature withdrawal can be done but is subjected to penalties.

The penalty varies based on the period of the investment.

  • If the withdrawal is after the first year and before the end of the second year, then 1.5 % of the amount deposited is deducted as penalty.
  • If the withdrawal is on or after the second year, then 1% of the deposited amount is deducted.

NPS allows withdrawal only after 3 years of subscription and the account holder can make withdrawals up to 25% of the contributions. NPS has two types of account Tier I and Tier II, wherein:

  • Tier II account works like a savings account and hence the account holder is free to do withdrawals anytime.
  • Tier I has not withdrawal option until the account holder turns 60 except for specific situations like critical illness, child’s marriage and construction/ purchase of a property.

What are the Interest rates on my account?

The above table provides the historic interest rates on SCSS. The government has decided to review these rates quarterly and the interest is paid on the last working day of April, July, October, and January.

With NPS, there are chances of making high returns as the scheme invests a certain amount in equities as well, so investors are capable of receiving interest rates as high as 12 – 14%, which is more than the interest rates provided by other savings schemes.

Can I have multiple accounts?

The answer is Yes for SCSS. One can have an individual account, Joint account with spouse and hold multiple accounts. Though the answer is No for NPS, the point is, there is no necessity to open multiple or a second account with NPS as it is portable across locations and sectors.

What are the tax implications?

As mentioned before, SCSS is a tax saving scheme.

  • The sum invested on or after April 1, 2007, is eligible for tax deductions up to 1.5 per annum under 80C of the Income Tax Act.
  • The interest earned is fully taxable.
  • Tax is Deducted at source if interest is more than 10,000 per annum.

For NPS:

  • With NPS you can save tax up to 1.5 lakhs every year under Section 80(CCD).
  • You receive an additional tax deduction of Rs. 50,000 p.a. under Section 80CCD(1B) to save Rs. 15,480 in taxes!
  • Starting 1st of April this year, NPS on withdrawal will be totally tax exempt (like PPF and EPF, but with better returns thanks to equity exposure).

How do I Open an Account?

One has to opt for a bank to open an SCSS account after which you would have to open a Savings bank account. You would require the following documents:

  •    Two passport size photographs
  •    Aadhar card. (Absence of which one must provide a copy of the acknowledged Aadhar card application)
  •    Address and identity proof such as PAN, Aadhar card, passport or declaration is Form 60 or 61.
  •    Fill the “account opening form” provided by the bank.

Note: Have your original identity proof for verification purpose.

For NPS:

  • You can visit a point of presence (PoP), fill the prescribed form and submit the KYC documents.
  • You can also do it online at enps.nsdl.com.
  • Or simple, do it easily on your phone with Finity app and experience the paperless KYC process by just sitting at home.

Is Nomination facility available?

Yes, the facility is available for SCSS by submitting an application as part of Form C, accompanied by the passbook of the Branch, at the time of opening an SCSS account.

NPS also provides the facility of nomination.

But in which bank do I open the account?

The SCSS account can be opened at any head post office or general post office.

The banks which offer SCSS are Allahabad Bank, Andhra Bank, Bank of Maharashtra, Bank of Baroda, Bank of India, Corporation Bank, Canara Bank, Central Bank of India, Dena Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, State Bank of India, Syndicate Bank, UCO Bank, Union Bank of India and Vijaya Bank.

The only private bank to offer SCSS is ICICI Bank. List of Pension Fund Managers for NPS are:

  • Birla Sun Life Pension Scheme.
  • HDFC Pension Fund.
  • ICICI Prudential Pension Fund.
  • Kotak Pension Fund.
  • LIC Pension Fund.
  • Reliance Capital Pension Fund.
  • SBI Pension Fund.
  • UTI Retirement Solutions.

Also, like SCSS, NPS account can also be opened through several banks as mentioned above. But why do it yourself when an app can do it for you? Finity- India’s first and only app provides the facility of NPS for its investors. All you need is a few minutes to complete the paperless KYC process and then follow the steps below, you are all set to begin your retirement journey with NPS on Finity.

 To sum it all up, the very objective of these Government Initiatives is to protect senior citizens from risks, cover their needs by means of assured returns.

It’s clearly seen that NPS can provide all the features that the Senior Citizen Savings Scheme can provide. Also additionally, it has tax benefits, way higher returns than usual retirement options and you can get it done easily with Finity.

Everyone deserves a peaceful retired life after working so hard. Let your investments work for you now.

Invest in NPS on Finity and enjoy a tension free Retirement Life!!

Investing towards Retirement - Dipika Jaikishan

Investing towards Retirement

Do not delay investments for your Retirement. Investing early will help you to build a large corpus that would make sure you are financially independent and secure during your Retirement Days. You have worked hard, now its time to make it work you.

Retirement Plan

Pension or Annuity for your retirement corpus?

Pensions and annuities are two great kinds of retirement income. But don’t confuse one with the other. They are two different instruments with their own advantages and disadvantages. Let us see what they are and which one would be more appropriate.

What is a Pension?

It is a type of retirement account which is mandatory for Government employees but is also recommended for private-sector employees to secure their retired life. The fund is opened and maintained with regular contributions throughout employment.

Some companies offer pension to their employees as part of the job (Employees’ Provident Fund or EPF) while others can voluntarily opt for other pension schemes (PPF/ NPS). In the case of private sector employees, the employer manages the contributions and payouts, which is one less worry on your end. Even if the company suddenly goes bankrupt, the Pension Benefit Guaranty Corporation will try and get you your pension as much as they can. You may not get the entire amount but you will still have most of it.

An important feature of pension is the tax exemptions as you receive the payments on your retirement under Section 80C (PPF, EPF, NPS, etc).

As far as maturity is concerned, you generally have two options.

  1. You can receive monthly payments which give a regular source of retirement income.
  2. You can choose to get your pension as a lump-sum amount. This way you can get the entire amount at once and use it as you like.

At the time of your retirement, you receive payouts regularly or in a lump sum, depending on the scheme that you opt for. The amount you receive depends on several factors like your age, salary and the duration of your employment.

What is an Annuity?

It is similar to an insurance scheme. You make a deal for a stipulated amount of money and pay the money at one shot or through deposits regularly. Your money is invested in mutual funds, stocks or bonds. The specifics like the amount you receive, maturity, etc. are set by you. When the time comes, if you retire or not, you start to receive your payments from the annuity.

A big advantage of annuities is that if you use your income-after-taxes to fund the annuity, then your pay-outs are totally tax-free. Suppose you exhaust your pension completely, you can open an annuity that lasts till your death.

Conclusion

On the whole, a pension needs very little planning on your part because it is likely to make most of the payouts as the law protects pension payments. Whereas with an annuity you receive a fixed stream of payments by buying it with some or all of your pension ‘pot’.

When it comes to deciding which of the two is ideal for you, it is best to look at your lifestyle, planned retirement corpus, spending capacity, etc. It will help you understand which one is more beneficial for your retirement as per your requirement and circumstances.

National Pension System (NPS)

Invest in National Pension System (NPS)

…& save additional Rs. 15480 in taxes in 2019

  • Invest Rs. 50000 in NPS and save additional Rs. 15480 in tax under Section 80CCD (1B)
  • Better returns (12-14%)
  • NPS is tax exempt at the time of investment, accumulation & withdrawal*
  • Regulated by PFRDA (Pension Fund Regulatory & Development Authority), with strict investment norms and routine performance reviews of fund managers.
  • Low fund management charges

Start investing in NPS now!

Download Finity

Finity on Play StoreFinity on iOS App Store

How to invest in NPS on Finity

NPS on Finity

Select NPS on Finity

On Finity, you can invest in NPS (along with Direct Mutual Funds and Term Insurance).

NPS on Finity

Benefits of Investing in NPS

The app highlights the benefits of investing in NPS.

NPS on Finity

Select Amount to Invest in NPS

Our Research team recommends investing Rs. 50,000 to save Rs. 15,450 in taxes under Section Section 80CCD (1B)

NPS on Finity

Smart Recommendation engine for NPS

Our app recommends the right NPS pension fund for your needs, including breakdown of asset allocation (in equity, bonds and government securities).

Finity Expert Advice on NPS

Frequently Asked Questions about NPS

What is NPS?

A pension scheme extended by the Government of India. It is mandatory for Government employees, while private sector employees can choose between NPS and Employee Provident Fund.

Can i withdraw my funds from NPS when I need it?

Yes, after 3 years you can withdraw upto 25% for the required expenses such as marriage, education, medical treatments, etc.

What is the minimum investment required in NPS?

For Tier 1 account, initial contribution plus subscription application is Rs.500 and for Tiet-2, it’s Rs.1000. The minimum annual deposit for Tier-1 is Rs.1000, while Tier-2 has no such requirement.

Would my investment beat inflation?

Returns are market linked, therefore equities are expected to beat inflation over the long term.

Is my Capital protected with NPS?

No, NPS invest in equities that are subjected to market fluctuations, but increases your potential to earn higher returns.

Who are eligible to invest in NPS?

An Indian resident whether resident or non-resident can prescribe for NPS.

Read more about Pension Schemes

With taxation on EPF interest should you move your investments to mutual funds or NPS?

What is the first investment option that comes to the mind of any salaried person? It is undoubtedly EPF. Employees Provident Fund (EPF) […]

TERMS OF SERVICE FOR NATIONAL PENSION SYSTEM

TERMS OF SERVICE FOR NATIONAL PENSION SYSTEM THIS DOCUMENT IS AN ELECTRONIC RECORD IN TERMS OF THE INFORMATION TECHNOLOGY ACT, 2000 AND RULES […]

3 Reasons to invest in NPS

3 Reasons Why, NPS (National Pension Scheme) deserves your attention! The National Pension Scheme (NPS) is regulated by the Government of India which […]

* Starting April 1, 2019