How to open an NPS account online with SBI Yono: A step-by-step guide
‘Pension account ka hai tension? YONO SBI is here to ease your NPS account opening process via digital service. Just follow simple steps and you are done,’ SBI tweeted
The National Pension System (NPS) is a retirement product that will help you accumulate wealth. It is a market-linked product that needs you to invest regularly in the funds of your choice. To open your account online, you will need to have a mobile number, an email ID and an active bank account with a Net banking facility.
“Pension account ka hai tension? YONO SBI is here to ease your NPS account opening process via digital service. Just follow simple steps and you are done," SBI tweeted.
Individuals can open either a Tier I - Pension account, or a Tier II - Investment account. Tier I requires a minimum contribution of ₹500, whereas Tier II requires a minimum contribution of ₹1,000.
Here is how to open an NPS account online through SBI YONO:
- Open the SBI YONO app on your mobile phone and head to the 'Investments' section.
- Subscribers can also visit www.onlinesbi.com and click on 'NPS Contribution', which is available under 'Payments/ Transfers' menu.
- Now tap on 'NPS Account Opening' .
- Now tap on 'e-Services' and then select the 'NPS Registration' or 'Nearest SBI Branch' option.
- Enter the required details for registration and make the mandatory contribution for effective application.
- Subscribers can choose a Pension Fund Manager (PFM) after successfully creating an account which can be altered only once per financial year.
Under NPS, the pension wealth, which accumulates over a period of time till retirement grows with a compounding effect.
Contribution to NPS Tier-I account is eligible for tax deduction under the Income Tax Act, 1961. An additional tax rebate of ₹ 50, 000 is also allowed for contributions made to NPS Tier-I under Section 80CCD (1B) of the Income Tax Act, 1961.
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