The NPS scheme is an excellent way to maintain your financial well being after retirement. However, you might not be aware of many things about NPS like the withdrawal norms, options when it comes to choosing the investment method, etc. Here are some of the things about NPS that are not so popular in the public domain:
Voluntary exit from NPS
You can take a voluntary exit from the NPS if you have been investing for a minimum of 10 years in NPS. If your NPS contributions have exceeded Rs. 1,00,000, you can withdraw only 20% of it and the remaining 80% will be invested in the annuity that will provide you with a pension post retirement. However, if your contributions are less than Rs. 1,00,000, withdrawing the entire NPS amount is possible.
NPS withdrawal norms if the investor dies
If an investor dies, the NPS corpus can be withdrawn in full if the deceased belongs to the private sector. However, buying the annuity plan is compulsory for the government employees.
Premature withdrawal norms
A partial withdrawal up to 25% of the NPS corpus is allowed if you have been contributing to NPS for 3 years. You are not allowed to withdraw more than 3 times during the NPS tenure and a gap of at least 5 years should be there between each withdrawal request.
The tricky NPS withdrawal rules and conditions make investing in other investment options like fixed deposits a better alternative. Fixed deposits are ideal for planning your finances according to your future investment plans. For earning higher returns, you may invest in Bajaj Finance FD that is offering FD interest rates of up to 7.05%. Some of the reasons that make it a hassle-free and beneficial investment option are given below:
Simple withdrawal norms
Unlike NPS, Bajaj Finance FD doesn’t make you wait for a long time to withdraw your deposits prematurely. Only 3 months need to be completed from the deposit date to make a premature withdrawal.
By investing in Bajaj Finance FD, you also get the benefit of applying for a loan against your deposits. A loan amount up to 75% of the FD value is approved by Bajaj Finance which nullifies the need of breaking your investments before they mature.
High returns for senior citizens
With an interest rate of up to 7.05%, Bajaj Finance FD proves to be a profitable investment option for senior citizens. SCSS (Senior Citizen Saving Scheme) which is another lucrative investment scheme for senior citizens provides only quarterly interest payouts. However, Bajaj Finance FD gives monthly, quarterly, bi-annual, and yearly interest payout options to every investor. It means that even senior citizens can utilise these options to receive a regular interest payout to manage their finances.
They can also invest in this FD scheme conveniently via an online FD form and make the payment via net banking or UPI. The documents can also be verified online through the CKYC method. The online investment procedure makes Bajaj Finance FD a hassle-free investment alternative for everyone.
Over 2,00,000 customers have invested in Bajaj Finance FD with a deposit book exceeding Rs. 20,000 crores. It reflects the trust of their customers. The high credit ratings of ICRA and CRISIL ensure that there won’t be any delay in payment of returns.
Investing in NPS is a wise decision but its withdrawal norms might not suit everyone. You can invest in fixed deposit schemes like Bajaj Finance FD that is offering a high interest rate of up to 7.05%. Along with that, it comes with easy withdrawal rules and provides safety to your invested capital.
The multiple interest payout options offered by this FD scheme enable senior citizens to manage their finances easily post retirement. Moreover, the online investment process makes the investment hassle-free for everyone.