Indian Bank was formed in March 1907 and has been providing banking solutions to individuals ever since it was formed. In April 2020 the bank was merged with Allahabad Bank and today Indian Bank and Allahabad Bank are working as a single amalgamated entity.
Among the range of banking products offered by Indian Bank, one product is the National Pension Scheme (NPS). Indian Bank allows its customers to apply to the NPS scheme and create their retirement corpus. Let’s understand the details about the NPS scheme in Indian Bank.
The National Pension System (NPS) was launched by the Government as a retirement planning tool. The scheme helps you save regularly towards a retirement corpus so that when you retire you can avail pension payments from the accumulated corpus throughout your lifetime. The NPS scheme is market-linked in nature allowing your investments to grow in tandem with market performance thereby giving you inflation-adjusted returns. Lastly, the scheme also earns you tax benefits on investments making it tax effective in nature.
Here are some of the important features of the Indian Bank NPS scheme for your knowledge –
To invest in the National Pension Scheme, Indian Bank offers you the facility of applying through its branches. Indian Bank is an authorized Point of Presence as notified by the Pension Fund Regulatory and Development Authority (PFRDA). Some of its branches are designated as Point of Presence Service Providers (POP-SPs) and you can visit these branches to apply for the NPS scheme in Indian Bank. The list of branches that serve as POP-SPs can be found at https://npscra.nsdl.co.in/pop-sp.php. Just enter your State and location and you would be able to check out the list of branches of Indian Bank wherein you can apply for the NPS scheme. To apply, follow the given steps –
The bank would, then, process your details and open your NPS account. You would also be allotted a Permanent Retirement Account Number (PRAN) using which you can check your NPS account and track your investments. You can also transfer your NPS account to another branch or financial institution if needed using the PRAN.
To be able to subscribe to the NPS scheme in Indian Bank, you should be aged between 18 and 65 years and should be an Indian citizen. NRIs can also apply to the Indian Bank NPS account.
The minimum contribution needed to open a Tier I Account is Rs.500 and for Tier, II Account is Rs.1000. once the account is opened, you should contribute a minimum of Rs.500 in Tier I and Rs.250 in Tier-II account every account so that your account is operative in nature.
As mentioned earlier, the NPS scheme is tax-saving in nature. You can get the following deductions when you invest in the Indian Bank NPS scheme –
Furthermore, any partial withdrawal done from Tier I Account, subject to terms and conditions, would be allowed as a tax-free income. The commuted corpus on maturity would also be a tax-free benefit in your hands. Annuity payments, however, would be considered as taxable income and they would be taxed in your hands at your income tax slab rates.
So, understand how the NPS scheme works and then invest in it through Indian Bank for saving for your retirement.