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How to open a NPS account online in HDFC

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How to open a NPS account

NPS is a voluntary pension scheme regulated by PFRDA and backed by Central Government of India; under this scheme any individual from 18 to 60 years of age can build a retirement corpus in a systematic manner. Post retirement an individual can withdraw up to 60% of the corpus as lump sum and balance 40% as monthly pension from PFRDA registered life insurance companies.

What are the highlights of NPS?

  1. An Individual can save tax up to Rs. 2 lakhs in a year (1.5 lakh in 80C and 50,000 in 80CCD)
  2. Individual can choose to invest in equity and debt instruments according to his own risk appetite. The maximum investment allowed in equity is 50%
  3. Minimum contribution for NPS is INR 500 per month or INR 6,000 per year
  4. Citizens of India or NRI (with valid Indian passport) can open the NPS account from anywhere in India
  5. First point of contact for the subscribers to open a NPS account are POP (Point of presence), the list of POP can be found in www.pfrda.org.in
  6. Flexibility to choose fund managers from 8 Asset management companies
  7. Fund Management cost is lowest among all investment options in India
  8. PFRDA has established NPS trust to monitor and review the performance of Fund Managers

Also read: Simple steps to open NPS account online using e-NPS

How to open a NPS account online in HDFC?

  1. HDFC securities registered users can login with their trading id and password
  2. New users can create a new HDFC account to access the website 
  3. Under “Online NPS” – Enter the personal details, nomination and bank details
  4. Print this form with supporting documents like address and ID proof with 2 recent photographs and submit to the nearest HDFC securities branch.
  5. A investors is required to make Rs 500 at the time of applying.

Once the KYC is done, Permanent Retirement Account (PRA) is created and “Unique Permanent Retirement Account Number (PRAN)” will allotted to each subscriber. An individual can open only one PRAN account.

Also read: NPS account for NRIs in India

What are the two investment types in NPS account?

Tier I Account: Tier I account is a mandatory pension scheme. One can withdraw the amount only after the subscriber attains the age 60.

Tier II Account: Tier II is an optional account, this account can be opened only with Tier I or after Tier I account opened. In this option the subscribers can withdraw the money anytime, this option does not eligible for tax saving. In Tier II Account the minimum holding in a year is Rs 2,000.

See also: NPS withdrawal process and procedures with different types of withdrawal forms

What are the two investment choices in NPS account?

Active Choice: Under this option, investors are free to allocate the investment across a) Asset Class E (Equity investment but equity restricted to maximum of 50%); b) Asset Class C (debt instrument excluding govt. securities); c) Asset Class G (only govt. securities).

Auto Choice: Under this option, funds invested across three asset classes based on the age of the investors. For example, Age between 18-36 the investments will be allotted as 50% in Asset Class E, 30% in Asset Class C and 20% in Asset Class G.

 

If you have any doubts regarding opening NPS account, kindly leave a comment. We would try our level best to address those.

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40 Comments
  1. Heera says

    Can we increase our investment in nps every year

    1. Mohammad Ali says

      There is no ceiling on the amount one can invest in the NPS.

  2. Ms pandit says

    I am 19 years old….if I open an NPS a/c now in tier 2 but want to change it to tier 1 or vice versa later, is that allowed.?….

    My parent is 55 years old. Does it make sense to open an NPS a/c now?

    1. Mohammad Ali says

      Hello Kavitahiren,
      You can invest in a Tier II account only if you have an active Tier I account.
      Tier 1 is the basic form of NPS Account for retirement purpose, Tier 2 is an account that offers greater flexibility in terms of withdrawal rules. BUT
      Since you are too young, you can invest in Equity Mutual fund for better returns.
      NPS is a smart tax saving choice for investors who are in 30% income tax bracket.
      Finally, forget about the money you invest in NPS till the age of 60. If you can’t, National Pension Scheme is not for you.

  3. Mohit says

    I am central govt. employee last 14 years, can I open a NPS account.

    1. Mohammad Ali says

      Mohit, The Central Government had introduced the National Pension System from January 1, 2004. Central government employee contributes towards pension from monthly salary along with matching contribution from the employer in NPS

  4. Megha says

    What is minimum amount we need to put into this account ?

    1. Mohammad Ali says

      Hello Megha,
      For NPS account opening, a minimum contribution for Tier I account is Rs. 500 and for Tier II, it is Rs. 1,000.

      Minimum annual contribution required for Tier I account is Rs.6,000 and 250 for Tier II account
      Mohammad Ali recently posted…How to Activate Your UAN Universal Account Number in IndiaMy Profile

  5. Naveen says

    Your comment is awaiting moderation.
    Nps payment is mandatory for every year? If I open Nps account with 50000 this year then for every year I have to pay 50000?

    1. Mohammad Ali says

      Yes Naveen, Nps payment is mandatory for every year but the minimum annual contribution required for NPS Tier 1 account is Rs.6,000 and Rs.250 for Tier II account
      Mohammad Ali recently posted…Everything about HOUSE RENT ALLOWANCE (HRA) in IndiaMy Profile

      1. Tushar Kotak says

        Hi,
        Tushar here, kindly help in understanding. if i put 50K this year in NPS and if i do not put money next year and going forward what happens to this 50K, will my account get blocked.?

      2. Mohammad Ali says

        Yes Tushar, your account will get block if the minimum investment criteria are not met. To unblock the NPS account, you need to pay a minimum
        contribution of Rs. 500/- together with a penalty of Rs. 100/- along with the unfreeze request. You need to submit a duly filled physical request to the associated PoP-SP to unfreeze your account.

  6. Saurabh says

    Hi,I am Saurabh.I have exhausted my 80C limit of 1.5L in other instruments. If I open NPS account,Can I claim 50k in section 80cce ??

    1. Mohammad Ali says

      Yes Saurabh, this NPS benefit of Rs 50,000 is over and above Rs 1.5 lacs under Section 80C.

  7. Megha says

    Thanks for sharing for informative post. Keep Posting.

    1. Mohammad Ali says

      Thanks Megha, keep coming
      Mohammad Ali recently posted…How can an employee change his scheme preference in NPSMy Profile

  8. Rajagopalan Tiruchirapalli says

    I am Rajagopalan, age 36 years, about to open account NPS Tier-1 account. I have read all terms & conditions & also it works out. But only 1 doubt, “for example, i invest 1000 INR per month for next 24 years & it amounts to 288000 INR & with the portfolios i maintain for all these 24 years, I earn total interest of say INR 1712000, the total balance coming to INR 20,00,000. I opt for 50/50 option, making 50% in annuity, i.e., 1000000 INR…how it translates to pension/month…what is the calculation?
    Also, for 1000000 being in annuity for years together after retirement, how it earns interest, at what percentage, & till what age i will receive the pension?

    To summarise, how annuity works?

    1. Mohammad Ali says

      Hello Rajagopalan,
      You can use your NPS corpus of least 40% to purchase annuity scheme from an insurance company at the time of retirement.
      When you purchase an annuity plan, the insurance company makes you periodic payments for life or fixed period. The insurance company pays pension depends on your age and the type of annuity plan you have chosen.

  9. HIREN KUMAR PANDYA says

    Hi there,

    I have opened NPS account 2 days before using eNPS portal. I have provided my HDFC Bank NRO account details while applying.

    Now I am in a fix, as
    1) online contributions only can be made through list of empannelled banks. HDFC Bank is not a part of that list.
    2) Debit card payments option is also there but NRO account do not permit payments internationally. (valid for india only)
    3) I can use my HDFC Bank NRE account via debit card mode, but the page says, payments need to be made via registered account only???
    I can not visit india to make contributions for sure.

    How to resolve this now? I have mandated ICICI prudential fund to manage my portfolio.
    Please advice

  10. Kaushal says

    I have NPS account, PRAN, online logged in and everything is fine.
    How to transfer money to NPS account from HDFC saving bank account?

    1. Mohammad Ali says

      Hi Kaushal, visit http://www.hdfcsec.com & download the HDFC Bank
      standing instruction form which will can be filled & duly signed with PRAN a/c no., Contribution amount,
      Frequency & Date of debit. The same needs to be forwarded to HDFC securities any of the nearest HDFC
      securities branch for auto-debt.

  11. Srinivas says

    I have an Tier 1 Account, can I open Tier 2 Account online?

    1. Mohammad Ali says

      Yes srinivas, you can open Tier 2

  12. Dr. Hemant Kashinath Todmal says

    Dear Sir:

    Is it necessary to have an account in the nationalised banks only to enable payment through netbanking? I have an account in HDFC Bank, and, the eNPS site does not show HDFC Bank in its payment gateway..

    Regards

    Dr. Hemant Kashinath Todmal

    1. Mohammad Ali says

      Hello Hemant,

      1 Allahabad Bank
      2 Andhra Bank
      3 Bank of India
      4 Bank of Maharashtra
      5 Corporation Bank
      6 Dena Bank
      7 IDBI Bank Limited
      8 Indian Bank
      9 Oriental Bank of Commerce
      10 State Bank of Bikaner & Jaipur
      11 State Bank of India
      12 State Bank of Patiala
      13 State Bank of Travancore
      14 Syndicate Bank
      15 Tamilnad Mercantile Bank Ltd
      16 The Karur Vysya Bank
      17 The Lakshmi Vilas Bank Limited
      18 The South Indian Bank Limited
      19 UCO Bank
      20 United Bank of India
      21 Vijaya Bank

      Currently only these banks are listed for eNPS registration

  13. Setty says

    If i open the account now (march 10) will i be eligible for the tax savings for this FY2015-16

    1. Mohammad Ali says

      Yes, You are eligible

  14. VINAY GANPULE says

    Can NPS account can be opened in two days?.

    1. Mohammad Ali says

      Hi Vinay, After the registration form is submitted, PRAN will be generated and will be printed and despatched within 20 days from the date of receipt of duly filled registration form

  15. Pankaja says

    I want to be a part of the NPS and I am looking for the insists on the Account registration in the HDFC Bank offline can you help me.

    1. Mohammad Ali says

      Hi Pankaja, you can directly visit the nearest HDFC branch to open NPS account offline
      Mohammad Ali recently posted…Simple steps to get your free CIBIL Credit Report onlineMy Profile

  16. Asit kumar Basu says

    I want to open a NPS a/c in HDFC by off line .Please assist me.
    Asit kumar Basu
    9609895399

    1. Mohammad Ali says

      Hi Asit Kumar, you can visit any one of HDFC securities branch nearby and fill up NPS subscribers form plus HDFC Bank Standing Instruction form. Also you need to provide required KYC documents. You can locate the HDFC securities branch here

  17. Nitin Badde says

    To invest in NPS, HDFC bank account is necessary? My account is in Bank of India.

    1. Mohammad Ali says

      Not at all Nitin, you can open with any authorized bank.

  18. Varunkumar Patel says

    How can i open NPS account on line with HDFC bank .I am customer of same bank

    1. Mohammad Ali says

      Hi Varun, check out his article http://onerupee.net/steps-open-nps-account-online-enps/

      or

      use the below link for online NPS registration
      http://www.hdfcsec.com/Registration.aspx

  19. Shailesh Vaidya says

    ECS facility is available to debit fixed amount every month from saving account to NPS account?

    1. Mohammad Ali says

      Yes you have Shailesh Vaidya

    2. Mohammad Ali says

      Yes Shailesh, NPS provides an ECS facility to its subscribers to invest electronically by giving an auto debit mandate to their banks