How to open a National Savings Scheme Account

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In India, the Small Savings Scheme and the Public Provident Fund (PPF) scheme have been big hits ever since they were announced.

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It is mandatory for every government employee to have an NPS account. But even private employees can have an account.

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The Pension Fund Regulatory and Development Authority (PFRDA) of India allows you to open an NPS account both online and offline.

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Fees charged on your NPS account

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Registration and deposit charges

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Investing in an all-equity scheme may promise you high returns, in the range of 20% p.a. or even more. Sure, this does seem like a very attractive option, but keep in mind that you also have no security.

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National Savings Scheme Account – What it is and How to open an account

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How to open a National Savings Scheme Account

In India, the Small Savings Scheme and the Public Provident Fund (PPF) scheme have been big hits ever since they were announced.

It is mandatory for every government employee to have an NPS account. But even private employees can have an account.

A Post-retirement plan

The Pension Fund Regulatory and Development Authority (PFRDA) of India allows you to open an NPS account both online and offline.

How to open an NPS account

Fees charged on your NPS account

Let’s look at the fees that are charged by some of the major banks.

Registration and deposit charges

You will be charged Rs.200 for registering your account with the bank. You will also be charged about 0.25% of the amount you deposit.

Investing in an all-equity scheme may promise you high returns, in the range of 20% p.a. or even more. Sure, this does seem like a very attractive option, but keep in mind that you also have no security.

Does it make sense to invest in an NPS account?

National Savings Scheme Account – What it is and How to open an account