Need money for causes like higher education, marriage of children<\/li>\n<\/ul>\nYour corpus should be equal or more than 1,00,000 to make a withdrawal from Tier – I account. And you have to make at least 6,000 INR every year to keep your NPS account active.<\/p>\n
There is very little liquidity in the Tier – I but still, you can withdraw funds when you need them for a special cause. The withdrawal process takes time so, you’ll need to do a little bit of planning beforehand.<\/p>\n
This should also remind you to not invest any money you plan to use in the near future, like in the next 5 years.<\/p>\n
Now take a look at Tier – II, the voluntary NPS account.<\/p>\n
Tier – II allows you to contribute as much money you want. And also withdraw as much you want, whenever you want.<\/p>\n
There are no restrictions on Tier – II accounts. It’s pretty much liquid money invested in the same asset categories as Tier – I.<\/p>\n
It’s just that you won’t receive any monthly pension from Tier – II. So, if your plan is to build a corpus to receive monthly pensions in your old days, choose Tier – I.<\/p>\n
For short term goals, Tier – II \u00a0is the one to choose.<\/p>\n
High Returns & Compounding Effect<\/h2>\n With an Aggressive investment approach, you are looking at an above-average and possibly very high returns depending on the market.<\/p>\n
By investing more than 75% of your contributions in Equity funds, the returns could be well above 10%.<\/p>\n
Surely higher than liquid Mutual funds and Debt funds.<\/p>\n
Another benefit of investing regularly in NPS is compounding your return on investments.<\/p>\n
Considering you are starting an NPS account at the age of 25, In a span of 35 years, your contributions of 1,000 per month will become 38,28,277 if we take an average interest of 10%.<\/p>\n
And your actual investment for the span of 35 years equals to 4,20,000. That’s nearly 10X of your actual investment.<\/p>\n
In my case, I’ve been contributing to my NPS since I was 18 years old. That means my contribution of 1,000 (I contribute more) every month will become 70,57,183 on the same 10% interest.<\/p>\n
So, you’ve got a valid reason now to start early.<\/p>\n
No Cap On Investment in Tier 2<\/h2>\n There is no cap on how much you can invest in the tier 2 NPS account.<\/p>\n
Tier – II doesn’t have any threshold where you can’t deposit any more funds.<\/p>\n
Whatever money you’ve left after building your emergency funds, stock purchases, security pay-offs and expenses can be deposited in NPS Tier – II.<\/p>\n
You can easily withdraw this money at any time. Switch investment scheme or transfer to NPS Tier – I account. You can set up weekly standing instructions and watch your investment grow on autopilot.<\/p>\n
Keep in mind, money deposited and interest earned from Tier – II NPS account is taxable.<\/p>\n
There are certainly many benefits of an NPS account that make you consider having one.<\/p>\n
Click here to register your NPS account.<\/a><\/p>\nIt’s a nice way to save extra money and plan for your retirement and future where you know you’ll need money to live a happy old life.<\/p>\n
Any questions? Let us know in the comments.<\/em><\/p>\n ","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"The National Pension System (NPS) is a great scheme to save tax and build massive wealth for retirement. Millennials don’t save money the traditional way, which is with fixed deposits and recurring deposits. \u00a0They tend to look at the investments that provide multiple benefits, such as tax saving funds. Think of NPS as a forced-saving …<\/p>\n ","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":1,"featured_media":2027,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[4],"tags":[23,22,21],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/aayushbhaskar.com\/wp-content\/uploads\/2020\/07\/NPS-for-millennials.jpg","acf":[],"yoast_head":"\n
6 Benefits of Investing in NPS Account for Millennials - Aayush Bhaskar<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n \n \n \n \n\t \n","gt_translate_keys":[{"key":"link","format":"url"}],"_links":{"self":[{"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/posts\/2022"}],"collection":[{"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/comments?post=2022"}],"version-history":[{"count":0,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/posts\/2022\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/media\/2027"}],"wp:attachment":[{"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/media?parent=2022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/categories?post=2022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aayushbhaskar.com\/wp-json\/wp\/v2\/tags?post=2022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}