Now Use Your Credit Card for NPS
Wondering if you can use your Credit Card to invest in your NPS account? The answer is a resounding yes! Interested in knowing how to complete your NPS payment through Credit Card?
We’re here to tell you everything you need to invest in NPS through Credit Card.
What is NPS?
The Government of India launched the NPS scheme in January 2004 to serve as a contribution scheme well-suited for establishing a means of income for post-retirement. It is an excellent tax-saving and long-term investment tool. It was initially restricted to government employees, however, in 2009, NPS was made accessible to all Indian citizens between 18-60 years of age. It is designed to ensure that NPS Account holders can continue earning a stable income even after retirement, besides considerable investment returns.
Contributions to NPS Accounts:
Before we begin exploring NPS payment by Credit Card, let’s take a look at the NPS contribution rules. NPS offers subscribers to choose between two types of NPS accounts: Tier I and Tier II.
An individual with an NPS Tier I account has to contribute a minimum of Rs. 6,000 annually. After staying invested till retirement (or reaching 60 years of age), they can choose to withdraw a part of the sum, about 60%, and put it to use. The remaining amount, preferably 40% of the total invested sum, should be used to purchase an annuity and set up the means for a regular income post retirement. On the other hand, Tier II NPS account offers more flexibility, acting as a voluntary savings account and allowing the account holder to invest a minimum of Rs 250 per contribution while giving them to option to withdraw it at any point in time.
Read more on the NPS Tier 1 and NPS Tier 2 Tax benefits here.
How to use your Credit Card for NPS?
Contribution to NPS can be made both online and offline. For online contribution, you can choose to make an NPS payment by Credit Card. Here are the steps to help you make NPS payments through Credit Card.
Step 1: Log into your NPS account by entering your NPS credentials (user ID and password).
Step 2: After successfully logging in, select the 'Transact Online' tab followed by the 'Contribute Online' option.
Step 3: You’ll be redirected to the eNPS website for online contribution. Enter your Permanent Retirement Account Number (PRAN) and verify through an OTP sent via email/SMS.
Step 4: After successful OTP verification, select account type between Tier I or Tier II type and enter the amount for NPS payment via Credit Card.
Step 5: Next, you’ll have to choose Credit Card among different payment options such as Credit Card, Debit Card, and Internet banking.
Here’s a pro tip for you! In addition to using Credit Card, NPS account holders can also use their Debit Card and Internet Banking facilities for online contributions. Also, remember that for NPS investment with Credit Card, account holders have to keep track of the charges incurred. Transaction charges include Rs 0.60 per transaction + GST@18% for Net Banking and 0.80% of the transaction amount + GST@18% for Debit Cards. Credit Card charges include 0.90% of the transaction amount + GST@18%.
Ready to make NPS payment through Credit Card? Just click below to get started!
As Covid-hit people looked for security in their golden years, both NPS and Atal Pension Yojana surged 30% in the number of subscribers and value.
Start investing today by opening your NPS Account today! Click here to get started!
* Terms and Conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action.