Regular post-retirement income | Additional tax benefit on investments up to ₹50,000 u/s 80CCD (1B) - EEE Category | Regulated by PFRDA (Pension fund regulator under Ministry of Finance, Govt. of India) Invest Now

Investments are a crucial element of retirement planning. Today, there are numerous investment schemes available that are designed to cater to your retirement needs. Among these schemes is the National Pension System, also known as NPS.

 

Investment in NPS offers numerous benefits, one of which is that it is accessible through various modes, including banks across the country. These are known as Points of Presence (PoPs), and one of the top PoPs is the State Bank of India (SBI).

 

Through SBI, the NPS investment is made available. You can access it online or offline, allowing you to invest seamlessly and at your convenience. To know how you can invest in the National Pension Scheme through SBI, the charges applicable, and more, read on.

How to Invest in NPS via SBI

With advancements in the financial sphere, investments have become more accessible. More and more financial institutes now offer multiple investment modes to ensure that you can invest whenever you want, without any hassles.

 

As such, you can open an NPS account online via SBI or visit the branch. Given below are the steps outlined to invest in NPS online or offline through the State Bank of India:

Online

To invest online in NPS, visit the SBI Pension Fund Scheme website and follow the steps mentioned below:

 

  • Click on ‘Open NPS A/C’

  • Choose your preferred CRA

  • Fill out the application form with personal details 

  • Complete the registration process

  • eSign your registration form

  • Submit it to the CRA within the prescribed time limit

Alternatively, you can invest via the official eNPS website. On the website, you will need to register and have an account with empanelled bank or non-banking entities. Post verification and allocation of PRAN, you need to eSign and courier the form to the CRA for NPS.

 

Once you complete the initial process, here are the steps to invest via SBI in NPS. 

 

  • Login on the SBI website

  • Navigate to the contributions tab 

  • Invest the amount you want to

In three simple steps, you can invest in the NPS instrument and work toward your retirement goals.  

Offline

To invest offline, you need to first fill out the PRAN application from the SBI branch near you or your preferred branch. Once you fill out the form, submit it at the branch and note the application number. 

 

You can use the application number to track the status on the official CRA (NSDL) website. While registering, you will need to make the first contribution towards your NPS account. Ensure that your contribution adheres to the guidelines of the NPS investment.

Charges Associated with SBI NPS Investment

Every investment, including NPS, comes with certain fees and charges that ultimately impact your returns. For NPS, the charges will vary depending on your investment and the PoP you choose. 

 

As such, it is crucial to know the charges levied by SBI for NPS account opening and investment. This will help you make informed and adequate investments. 

 

Here is an overview of the charges levied by SBI to invest in NPS. 

Service charged 

Charges to be paid by the investor

Initial subscriber/ registration

₹400

Initial contribution amount

Ad valorem (0.50%), (min. ₹30 and max. ₹25,000)

Subsequent contribution charge

Ad valorem (0.50%), (min. ₹30 and max. ₹25,000)

Any transaction not involving a contribution

₹30

Disclaimer: The above charges are subject to change at the bank’s discretion.

Features and Benefits of Investing in NPS

Here is an overview of the features and benefits you can enjoy by investing in NPS:

 

  • Nominal minimum monthly or yearly investment contribution 

  • Portability to keep investments intact in case of job or location change

  • Market-linked returns to deliver better financial growth in the long run

  • Partial withdrawal facility available before the maturity of the investment

  • Mandatory purchase of annuity required, thus ensuring stable cash inflow during retirement

  • Access to a fund manager to ensure professional management of funds

Eligibility and Documents for NPS Investment

Knowing the eligibility is crucial as it helps ensure that your investment process is seamless. Given below are the requirements you need to meet to invest via SBI in NPS:

 

  • Investor must be between the age of 18 – 70 years

  • Investor must be a citizen of India (residential or non-residential)

The documents you need to submit to SBI for the NPS account opening process are listed below:

 

  • ID proof

  • Age proof

  • Address proof

Here are a few eligibility parameters for NPS Tier 1 accounts:

 

  • Minimum contribution - ₹500

  • Minimum amount payable for each contribution - ₹500

  • Minimum account balance to be maintained at end of each year - ₹6,000

  • Number of contributions to be made each year - At least 1

These are the eligibility criteria for the Tier 2 NPS account type:

 

  • Minimum contribution to open a new account - ₹1,000

  • Minimum amount payable for each contribution - ₹250

  • Minimum account balance to be maintained at end of each year - ₹2,000

  • Number of contributions to be made each year - Minimum 1

Note that for activating a Tier 2 account, you need to have an operational Tier 1 account. The minimum contributions for both these accounts are ₹1,500 when starting an NPS investment. 

 

You need to submit a cancelled cheque along with your application form, when opening a composite account or an individual Tier 2 account.

 

When completing the process to invest via SBI in NPS, ensure to invest appropriately and as per the requirements. Choose between the Tier I and Tier II accounts after careful consideration to make the most of your investment.

FAQs on Investing in NPS Through SBI

Which bank is good for investing in NPS?

There are numerous leading banks through which you can invest in NPS. Among these banks is the State Bank of India (SBI). NPS investment through these banks is easy, seamless, and hassle-free.

Can you invest in NPS through any SBI branch?

Yes, you can invest in the National Pension Scheme through any SBI branch across the country. Be sure to go through the associated charges and other conditions to ensure that you make a decision that is best for your current and future finances.

How can I invest in NPS through SBI?

You can invest in the NPS scheme via SBI either through the online process or through the offline process. To invest online, you need to visit the bank’s dedicated NPS landing page. To invest offline, you need to visit the branch nearest to you.

Is NPS investment available for NRIs?

Yes, NRIs can invest in NPS. Moreover, NRIs can also visit the dedicated webpage made available by SBI for NPS investments.

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