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Here’s all that you Need to Know About the Benefits of Joining NPS

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Joining NPS

National Pension Scheme (NPS) allows you to earn both a lump sum amount and regular income after retirement. Even employers can introduce it as an extra option for planning the retirement of their employees. You must need to deposit a minimum amount of Rs. 500 or Rs. 250 every year in an NPS account depending upon whether you have opted for the Tier-1 or Tier-2 NPS account. However, it is recommended that you deposit a higher amount every year so that you receive a substantial pension post-retirement. The benefits of NPS are stated below:

Portable instrument 

NPS is a portable instrument as you don’t have to open a new NPS account with every job or location change. This means that you can transfer your PRAN (Permanent Retirement Account Number) from private to the public sector or vice versa seamlessly. 

High-paying instrument 

When you deposit your money in an NPS account, it gets further invested in equities, corporate debts, government securities, and alternative investment funds. This means that your earnings get invested in both low-return/risk, medium,-risk/return, and high-risk/return investments. As a result, you get a sizable corpus till retirement. 

Around 60% of the corpus will be provided in bulk and the remaining 40% will be used for paying a regular pension once you retire. Also, as it is a government-sponsored scheme, this national pension system is considered to be a safe and stable instrument. 

Assistance of PFM

You don’t have to manage your NPS contribution and account by yourself. While registering for NPS, you will need to select a PFM (Pension Fund Manager) who will assist you while contributing towards the NPS account. 

Despite these benefits, NPS is suitable for retirement planning and comes with strict withdrawal norms. If you are searching for a flexible and secure investment option that can also provide high returns then you can invest in Bajaj Finance FD. This fixed deposit scheme is considered to be secure as CRISIL and ICRA have rated it highly for securing depositor’s money. 

Also, a flexible tenor from 12 to 60 months allows you to achieve your short and long-term financial goals easily. Moreover, a high FD interest rate of up to 6.75% is provided to enable you to earn sufficient returns at maturity. Some more benefits of investing in Bajaj Finance FD are given below:

Seamless online investment 

Investing in Bajaj Finance FD is quite easy as an online application procedure is provided through an online FD form. Also, you need not attend the document verification round physically as the option of sharing your CKYC number for document verification is available. For investing in an FD online, you get a 0.10% higher interest rate as well. 

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Estimation of returns 

Estimating NPS is not easy as you will have to consider the performance of various asset classes over the entire investment period. However, calculating Bajaj Finance FD returns is easy as a fixed deposit calculator is provided on the official portal of Bajaj Finance. This means that you can estimate the FD returns precisely before investing and this also allows you to plan your future finances accurately. 

Loan against FDs

You no longer have to worry about withdrawing your deposits prematurely as Bajaj Finserv is offering a loan up to 75% of your FD value. This helps you to keep your investments intact even during a financial emergency. This means that Bajaj Finance FD can be used as a contingency fund whenever the need arises. 

A 0.25% excess FD rate for senior citizens, the option to invest in several fixed deposits at once, and convenient withdrawal norms make it one of the better investment alternatives in 2021. 

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