How to Open NPS Account?

Are you looking for a platform to invest in the National Pension System (NPS) and secure your retirement, but need help knowing where to start? You are in the right place! In this blog, we will explain the easiest way to open an NPS account online with TrueFin in just 7 simple steps. Let's dive right in!

What is NPS?

First and foremost, let us understand what NPS is. The National Pension Scheme (NPS) is a retirement savings plan in India. It enables individuals to make contributions via SIPs or lumpsum during their working years, creating huge funds for retirement.

There are two types of accounts where individuals can invest - 

• Tier 1 Accounts are mandatory and long-term. Contributions are locked until age 60. There are tax benefits for investing in a Tier 1 account. 
• Tier 2 accounts are optional and flexible. There is no lock-in period but no tax benefits as well. Withdrawals are allowed at any moment. Here you get the liquidity of funds. 

When an individual reaches the age of 60, they can exit the NPS. At maturity, the accumulated corpus can be used to purchase an annuity plan, which provides a regular monthly pension. 

NPS aims to provide financial safety in old age by encouraging systematic savings. You have control over your pension and your savings can decide how much pension you receive month on month. 

Why should you choose TrueFin?

TrueFin is your trusted partner for retirement planning. It makes opening an NPS account online a simple, hassle-free process, and you can complete your entire process from the comfort of your home.

Let's get started with the step-by-step guide

Step 1: Visit the TrueFin NPS portal- https://thetruefin.com/open-nps-account

Begin the process, by clicking on www.thetruefin.com/nps. Click on that button to begin opening your NPS account.

Step 2: Enter your investment details

Enter the amount you want to invest in your NPS account or you can alternatively put the amount you aim to achieve at retirement. This will customise your investment strategy making it easier for you to achieve your retirement corpus. 

Selecting the right pension fund plan is a crucial step in securing your financial future. Here’s how to navigate this decision:

Step 3: Select a pension fund plan

Consider your risk tolerance. Are you comfortable with higher risks for potentially greater returns, or do you prefer a more conservative approach? Your answer will guide your investment strategy.

Decide how much you want to invest each month. This consistent contribution will build your retirement corpus over time.

TrueFin simplifies the process. Based on your preferences, it recommends the best plan for you. Remember, you can always adjust your choice later.

Step 4: Complete the KYC process

The KYC (Know Your Customer) process is an important step. It’s required by law to confirm your identity and prevent fraud. TrueFin ensures a paperless, digital and secure experience

No more cumbersome paperwork! You’ll provide your details online, saving time and effort. You’ll need to provide some personal details online. Ensure you enter the right data and fill in all the boxes correctly. Any missing or incorrect details could lead to freezing your NPS account. Know how to unfreeze your NPS account.

Step 5: Make the initial payment

Congratulations! You’re close to securing your NPS account. Here’s how to make that crucial initial payment without a hitch. TrueFin provides a range of secure payment methods. Pick the one that suits you best—whether it’s net banking, credit card, or UPI. 

The payment process is straightforward. Just follow the on-screen instructions, and voilà! Your NPS journey begins. Remember, this step is pivotal for your financial future.

Step 6: Add nominee and bank details

Now, you’ll add crucial information to your NPS account. Designate someone who will receive the funds in case of unforeseen circumstances. Compliance with regulations mandates this step. Remember, you can update your nominee later if needed. Provide your preferred bank information. This ensures your NPS account aligns with your preferences and legal obligations.

Step 7: Generate your PRAN

Congratulations on reaching the final stage of setting up your NPS account! Now, let’s generate your PRAN—a crucial identifier for managing your investments within the National Pension System. 

Once you generate your PRAN, your NPS account setup is complete.

What is PRAN?

PRAN stands for Permanent Retirement Account Number.

It’s a unique alphanumeric code assigned exclusively to your NPS account. Think of it as your financial fingerprint—it ensures seamless tracking and management of your retirement savings.

With these easy 7 steps, you have successfully opened your NPS account with TrueFin. It’s a simple process that you can complete online without any hassle. By securing your retirement with NPS, you’re taking an important step toward a financially stable future.

You can also refer to the following video for step by step process o  how to open NPS Account - Click here

FAQs

1. What are some tips to ensure a smooth experience in opening an NPS account?

Gather your essential documents—ID proof, address proof, and bank details. Having them handy will streamline the process. When filling out forms, double-check every detail. Accuracy prevents delays and ensures a smooth experience. Keep an eye on NPS updates. Understand the benefits, investment options, and tax advantages. It’s your retirement—stay informed!

2. Is NPS tax-free once you retire?

Yes, when you reach 60 years old, you can withdraw 60% of your NPS corpus in one lump sum, and guess what? It is fully tax-free! The remaining 40% must be utilized to purchase annuities. So, NPS not only helps you save for retirement, but it also keeps the IRS (income tax) away! 

3. Who can join NPS?

NPS  is open to all Indian citizens aged 18-60. The sole requirement is that the person adheres to the customer's (KYC) guidelines.

4. Can I have a number of NPS accounts?

No, you cannot create numerous NPS accounts. In fact, there is no need to register a separate account because NPS is transferable across industries and regions.