I am planning to invest 50K extra into NPS which Govt allows us to invest for TAX benefit. Please Clarify on below
1. Do we have one time investment option in NPS?
2. If Not how many years minimum we have to invest?
3. Is there any minimum amount which we can invest to keep NPS account Active?
4. If I invest into Tier 2 account , Can I withdraw entire amount?
5. I heard even for Tier2 account we need to open Tier 1 account? Why do we need tier 1 account and what amount will exist in this account?
Appreciate your help on this
CBVPRATHAP-First of all why you feel NPS a good investment product? If you are Govt. employee and it is compulsory for you, then go ahead and continue. But don’t over invest. Otherwise, I don’t feel it is a great retirement product. Because of lock-in facility, taxation and return on such products.
- No minimum years but depends on your age and retirement age.
- Yes. Per year it is Rs.6,000 for Tier 1 and for Tier 2 it is Rs.1,000.
- Yes you are correct. Because Tier 1 is meant for pure retirement.