SBI Pension Scheme : National Pension Scheme (NPS) And PPF

State Bank of India (SBI) provides a lot of services under its personal banking portfolio. These include the National Pension System (NPS) account and the PPF (Public Provident Fund) account head. Both of these SBI accounts provide financial security to PPF and NPS subscribers in one stage of life.

The PPF account is a special investment option that gives a very good return, which also provides tax benefits. This information is also available on the SBI portal. While the National Pension System (NPS) is a special kind of pension system that provides financial security to all citizens of the country. It is controlled by the Pension Fund Regulatory and Development Authority.

PPF (public provident fund) account of SBI

Investors can open an account on their own name or in the name of their minor child. They can do this from any branch of SBI. For information, please let us know that Hindu undivided families are not allowed to open a PPF account. In this, you can invest up to 500 rupees and up to 150,000 rupees within a financial year. You can either deposit this amount either in lump sum or in 12 installments. The maturity of SBI's PPF account is 15 years, although there may be a little more detail in this. The interest paid on this is determined on a quarterly basis by the Central Government. Currently, the interest rate on this will be 7.6 percent. Income tax exemption under section 88 of this section is available on this account.

SBI NPS (New Pension Scheme) account

SBI's NPS account can open any person from 18 years to 65 years. NPS account has to maintain 6000 rupees within a year. The investment up to Rs 2 lakh in the NPS account during the financial year comes under the exemption under Section 80CCD (1) and Section 80CCD (2) of income tax. Compared to PPF, the NPS has a long lockin period and its corpus remains locked till the age of 60 years. Although withdrawal is allowed even before the age of 60 years. The types of accounts in the NPS are: Tier-1 and Tier-2 Tier-1 NPS account is a pension account in which withdrawals are not allowed, while Tier-II account is considered an investment account. Withdrawal is allowed in this. Tax Benefit is available in Tier-1 NPS account whereas no TAX benefit is available in Tier-2 NPS account.

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