NPS Scheme: National Pension Scheme is such a scheme, which provides a hefty amount to people on retirement. Also gives the benefit of pension.
National Pension System: The National Pension System started by the Central Government provides retirement benefits. After retirement, apart from giving a good amount to the investor, it also gives monthly money. However, in this you will have to invest a few years in advance, on which you will be given interest. This is a long term investment option.
NPS scheme does not allow pension shortage in old age. Although some of its charges also, about which you should know. Let us know what are the charges you have to pay for NPS service.
- On registering for the first time, you will have to pay a charge of Rs 200 to Rs 400.
- 0.50% of the contribution for initial contribution and final contribution, with a minimum of Rs.30 and a maximum of Rs.25,000
- e-NPS 0.20% of contribution for continuous contribution, minimum Rs 15 and maximum Rs 10000 is applicable for all NPS accounts.
- Rs 30 is charged for all non-financial transactions
Persistence fee
For annual contribution between Rs 1000 to Rs 2999, a persistence fee of Rs 50 is charged every year and the mode of deduction will be through cancellation of units. Rs 75 will be charged for amount between Rs 3000 to Rs 6000 and Rs 100 for more than Rs 6000. The processing fee for withdrawals and exits will be 0.125% of the corpus or minimum of Rs.125 and maximum of Rs.500.
