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Extra ₹50,000 tax saving

National Pension System

Build your retirement corpus, save ₹50K extra tax

NPS is a government-backed retirement scheme regulated by PFRDA. Invest in equity / corporate bonds / G-sec mix till 60. Get exclusive ₹50,000 deduction under 80CCD(1B) — over and above ₹1.5 L of 80C.

Regulated by PFRDA

Key facts

Minimum contribution
₹500/year (Tier I)
Tax benefit
80C ₹1.5L + 80CCD(1B) ₹50K
Lock-in (Tier I)
Till age 60
At 60
60% tax-free lumpsum, 40% annuity
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What you get

Two-tier structure

Tier I — locked till 60, tax benefits. Tier II — fully flexible, no tax benefits, withdrawable anytime.

4 asset classes

E (equity, capped 75%), C (corporate bonds), G (govt securities), A (alternatives — REITs, InvITs).

Lowest expense ratio

PFM fee is just 0.03–0.09%. Compared to ~1–2% for active mutual funds.

Active or auto choice

Pick your own allocation (Active) or let age-based glide path auto-rebalance (Auto Choice — Aggressive/Moderate/Conservative).

Is this for you?

  • Salaried and self-employed individuals planning for retirement
  • Anyone who has exhausted ₹1.5 L of 80C and wants more tax saving
  • Long-horizon investors (10+ years till age 60)
  • Government employees (NPS is mandatory for new entrants)

Common questions about National Pension System

Section 80CCD(1B) gives you a deduction of up to ₹50,000 for NPS Tier I contributions — over and above the ₹1.5 lakh limit of 80C. Effectively, ₹2 lakh deduction possible via NPS alone.

Risk & regulatory note

NPS returns depend on the chosen asset mix and market performance. Annuity rates at maturity vary by insurer and prevailing interest rates. Lock-in till age 60 applies to Tier I.

Talk to an advisor about National Pension System

Free 30-minute consultation. No fees, no pressure. We answer your questions before you commit.

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