National Pension System
The National Pension System (NPS) is a government-backed retirement savings scheme designed to help you build a pension fund for your future.
What is National Pension System (NPS)?
It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) under the Ministry of Finance, Government of India.
You invest regularly during your working years, and at retirement (age 60), you receive a combination of lump sum and pension income.
Why Invest in NPS?
Long-term retirement planning
Market-linked growth potential
Additional ₹50,000 tax benefit under Section 80CCD(1B)
Low fund management charges
Transparent and regulated structure
How to Apply for NPS Online Through Finease
Keep Documents Ready
PAN
Aadhaar
Bank details
Choose Account Type
Tier I Account (Retirement-focused, tax benefits available)
Tier II Account (Voluntary savings, flexible withdrawals)
Select Investment Option
Active Choice (you decide allocation)
Auto Choice (allocation based on age)
Make First Contribution
Complete your first investment online.
Get PRAN
You receive your Permanent Retirement Account Number (PRAN).
Plan Your Retirement with Finease
Opening an NPS account is not just about tax savings — it's about securing your financial future with confidence and discipline.
NPS vs PPF – Which is Better for You?
Many investors compare NPS with Public Provident Fund (PPF). Both are government-supported retirement options but serve different needs.
| Feature | NPS | PPF |
|---|---|---|
| Regulator | PFRDA | Government of India |
| Returns | Market-linked | Fixed interest (declared by Govt.) |
| Risk Level | Moderate (market exposure) | Very Low |
| Lock-in Period | Till age 60 | 15 years |
| Tax Benefit | 80C + Additional ₹50,000 (80CCD(1B)) | 80C up to ₹1.5 lakh |
| Withdrawal | Partial allowed after 3 years | Partial after 7 years |
| Pension | Mandatory annuity (40%) at retirement | No pension feature |
When to Choose NPS?
- •If you want higher long-term growth potential
- •If you want extra ₹50,000 tax benefit
- •If you want structured retirement pension income
When to Choose PPF?
- •If you prefer fixed and guaranteed returns
- •If you are a conservative investor
- •If you want simple long-term savings
👉 Many investors use both NPS and PPF for balanced retirement planning.
Frequently Asked Questions
1. Who can open an NPS account?
Any Indian citizen aged 18 to 70 years can open an NPS account.
2. What is PRAN?
PRAN (Permanent Retirement Account Number) is a unique 12-digit number allotted to every NPS subscriber.
3. What is the minimum investment?
Tier I: ₹500 per contribution, ₹1,000 per year minimum. Tier II: ₹250 per contribution.
4. What are the tax benefits in NPS?
You can claim up to ₹1.5 lakh under Section 80C and an additional ₹50,000 under Section 80CCD(1B). This makes NPS one of the most tax-efficient retirement options.
5. Can I withdraw money before age 60?
Yes, partial withdrawals are allowed after 3 years for specific purposes like Education, Marriage, Medical treatment, and House purchase. Conditions apply.
6. What happens at retirement (Age 60)?
At age 60, up to 60% can be withdrawn as lump sum (tax-free as per current rules), and minimum 40% must be used to purchase an annuity (pension).
7. Is NPS safe?
NPS is regulated by PFRDA and follows strict investment guidelines. However, returns are market-linked and not guaranteed.
8. Why open NPS through Finease?
With Finease, you get 100% digital NPS account opening, easy online contributions, smart retirement insights, simple and intuitive app experience, and a smart dashboard to track your scheme performance and contribution summary.
Why Open NPS Through Finease?
With Finease, you get:
100% digital NPS account opening
Easy online contributions
Smart retirement insights
Simple and intuitive app experience
Smart dashboard to track your scheme performance and contribution summary
