Post Office National Pension System (NPS): How It Works, Transaction Charges And More

India Post, the postal system of the country, offers the facility of opening accounts under National Pension System (NPS). NPS is a government-sponsored retirement planning instrument regulated by the Pension Fund Regulatory and Development Authority (PFRDA). PFRDA has appointed India Post as one of the Point of Presence (POP) - the first points of interaction of the NPS subscriber with the NPS architecture. India Post provides services through POP service providers (POP SPs). All head post offices across the country are identifies as POP SPs, according to India Post's website- indiapost.gov.in.

Given below are salient features of Post office NPS account:

Eligibility

All citizens who do not come under any NPS sector and are aged between 18 and 64 years of age can open an NPS account with post office, it noted.

Services offered

India Post allows subscribers to open NPS  account and make subsequent contributions. All types of service requests and exit / claim withdrawal requests are also offered, stated India Post.

Types of NPS accounts

There are two types of accounts that are opened under NPS: Tier I and Tier II. Tier I is a pension account and is mandatory. Tier II is a savings account and is optional.

Minimum/Maximum contributions required

Here are the different types of contributions required under Post office NPS accounts:

Transaction charges

Here are the different transaction charges levied by India Post for opening NPS accounts

Income Tax benefits

Customers get an additional tax benefit up to Rs. 50,000 for investment in NPS (All Citizen Model), according to India Post.