how to open nps account in hdfc
National Pension System (NPS) is a government-backed retirement savings scheme in India that helps individuals build a corpus for their retirement years. HDFC Bank, one of India's leading private banks, offers the facility to open an NPS account for its customers. In this blog post, we will guide you on how to open an NPS account in HDFC Bank.
Step 1: Check eligibility
Before you proceed with opening an NPS account in HDFC Bank, you must check if you are eligible for the scheme. NPS is open to Indian citizens and NRIs between the ages of 18 and 65. You can apply for an NPS account through HDFC Bank either as an individual or as an employer seeking to enroll employees under the scheme.
Step 2: Gather Required Documents
To open an NPS account, you need to submit certain documents. The following documents are mandatory:
- Aadhaar card (or PAN card)
- Passport size photograph
- Proof of address (utility bills, bank statement, or rental agreement)
In addition to the above, you also need to submit a cancelled cheque or a bank statement, which will be used for auto-debit of contributions.
Step 3: Select NPS account type and fund manager
There are two types of NPS accounts you can open in HDFC Bank: Tier-I and Tier-II. Tier-I is a mandatory account that comes with certain restrictions on withdrawals and offers tax benefits. Tier-II is an optional account that offers more flexibility in terms of withdrawals, but does not come with any tax benefits.
Once you have selected the account type, you need to choose a fund manager. HDFC Bank offers NPS accounts managed by three different fund managers: HDFC Pension Management Company, ICICI Prudential Pension Funds Management Company, and Kotak Mahindra Pension Fund.
Step 4: Submit application and make initial contribution
You can apply for an NPS account in HDFC Bank either online or offline. To apply online, visit the HDFC Bank website and fill in the NPS account opening form. Once you have filled in the form, attach the required documents and submit the application.
If you prefer to apply offline, visit the nearest HDFC Bank branch and collect the NPS account opening form. Fill in the form and attach the required documents. Submit the form and make the initial contribution of Rs. 500 or more.
Step 5: Authenticate identity and address
After submitting the application, you need to authenticate your identity and address. For this, you can either opt for e-KYC (using your Aadhaar details) or submit physical copies of your identity and address proof to HDFC Bank.
Step 6: Receive PRAN and welcome kit
Once your application is approved, you will receive a Permanent Retirement Account Number (PRAN) from the National Pension System Trust. HDFC Bank will also send you a welcome kit containing the details of your NPS account, PRAN card, and other important information.
Step 7: Make regular contributions
To keep your NPS account active, you need to make regular contributions. You can make contributions either through auto-debit from your bank account or by visiting the nearest HDFC Bank branch.
Opening an NPS account in HDFC Bank is a simple and hassle-free process. By following the above steps, you can start building your retirement corpus and enjoy tax benefits. Remember to make regular contributions and monitor your account regularly to ensure that it meets your retirement goals.
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