The Indian Overseas Bank National Pension System (NPS) is a government-backed retirement savings scheme regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It allows individuals to invest in a pension fund during their working years, ensuring financial security after retirement. The scheme is open to Indian citizens between 18 and 70 years of age and offers tax benefits under Section 80CCD of the Income Tax Act.
The Indian Overseas Bank (IOB) NPS scheme is offered as part of the PFRDA-regulated NPS and allows individuals to invest in a structured pension plan. IOB, being a registered Point of Presence (POP) Service Provider, facilitates the opening and management of NPS accounts.
The IOB NPS functions on a Tier I and Tier II account structure:
Tier-I Account:
Tier-II Account:
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Subscribers must open a Tier I account to be eligible for pension benefits. The Tier II account is beneficial for those looking for additional investment flexibility.
NPS offers two types of investment strategies:
NPS allows subscribers to choose from seven pension fund managers (PFMs), including:
Subscribers can switch between PFMs as per their investment preferences.
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NPS offers attractive tax benefits under the Income Tax Act:
Individuals can open an IOB NPS account through online and offline methods.
To open an IOB NPS account, you need:
The Indian Overseas Bank (IOB) NPS scheme is an excellent retirement planning tool, offering long-term financial security, tax benefits, and flexible investment options. With its government-backed pension structure, individuals can systematically invest and build a robust post-retirement corpus. Whether you are a salaried employee or self-employed, investing in NPS through IOB can help secure your future with regular pension income.
The minimum contribution is ₹500 per transaction for Tier I and ₹1,000 for Tier II.
Yes, you can open an NPS account online through the PFRDA NPS portal or IOB’s website.
NPS offers deductions under Sections 80CCD(1), 80CCD(1B), and 80CCD(2), allowing tax savings of up to ₹2 lakh per annum.
Partial withdrawal of up to 25% is allowed under specific conditions, such as medical emergencies or higher education.
Your NPS account remains active and can be continued irrespective of job changes or employer transfers.
Yes, you can switch your pension fund manager (PFM) once per financial year.
At 60 years of age, you can withdraw 60% of the corpus tax-free, while the remaining 40% must be used to purchase an annuity.
You can choose between Auto Choice (age-based allocation) or Active Choice (self-selected asset allocation) for investments.
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