Canara NPS Calculator

About Canara NPS

Founded in 1906, Canara Bank became a public sector bank after it was nationalized in 1969. It is now managed by the Government of India. The bank allows you to create an NPS account which you can use to save and fund your post retirement needs. The benefits of this account can be availed of by any Indian resident once they reach their retirement age. The PFRDA (Pension Fund Regulatory and Development Authority) administers and regulates the National Pension Scheme. Individuals falling in the age bracket of 18 to 60 years can open their NPS account at the Canara Bank. Note that opening an e-NPS requires you to submit your PAN card or Aadhar Card. 

What is the Canara NPS Calculator?

If you want to estimate the amount that you shall be entitled to at your retirement age, you can use the NPS calculator. The Canara Bank NPS Calculator helps you estimate the lump sum maturity amount, along with the interest earned throughout the tenure of your deposits.  It offers you an instant calculation of the corpus you will receive, which subsequently helps you evaluate and reassess your retirement goals, future needs. Based on these results, you can choose to make changes in your financial planning accordingly. 

The NPS calculator can be used by any subscriber from the comfort of their homes. The tool is straightforward, easy-to-use, and hassle-free, offering instant results. The Canara National Pension Scheme Calculator estimates the lump sum amount on maturity on the basis of a few factors. Some of the important ones are:

• The current age of the Canara NPS Account subscriber

• Monthly investment amount

• Expected return on investment

• Choice of NPS option (Auto or Active)

The NPS calculator also factors in the percentage of corpus you would wish to allocate to purchase annuity and the subsequent expected rate of return from it.

Why choose Canara Bank for NPS?

Canara Bank is a public sector bank managed by the Government of India. This makes it a reliable option to park your savings.  Individuals working in government, retail, or corporate sectors can open their NPS account at Canara. Even NRIs can open an NPS account and avail all the benefits offered by it. There are four types of funds to choose from based on an individual’s risk appetite. These are - equity, government securities, corporate debt, and Alternative Investment Funds such as Real Estate Investment Trusts, Mortgage-Backed Securities, Infrastructure Investment Trusts, etc. 

Eligibility Criteria for Canara National Pension Scheme

The following are the eligibility criteria for this government-backed scheme:

• Any resident of India can open an NPS account.

• NRIs can contribute to an NPS account as well through their NRE or NRO account. 

• The minimum age for opening a National Pension Scheme account is 18 years.

• The maximum age for opening a National Pension Scheme account is 60 years.

• The maximum maturity age of 60 years, however, it can be extended to 70 years should the NPS account holder choose to.

• Compliance with KYC norms is mandatory to open an NPS account.

• An applicant is not allowed to have more than one NPS account.

• The account requires a minimum contribution of Rs. 6,000 in a year or a monthly sum of Rs. 500.  

Benefits of Opening A Canara National Pension Scheme Account

NPS is a safe option to start saving for one's retirement and safeguard their financial future. The money that you shall invest in an NPS account is professionally managed by experienced pension fund houses. 

Some of the key benefits of a Canara NPS account are:

1. Liquidity

   In order to serve your liquidity needs, you should have one of the following accounts under the National Pension Scheme.

   1. Tier-I Account

      • This account works as your default pension account.

      • Withdrawals are not allowed before the date of maturity. There are certain restrictions if you want to withdraw before that time frame. 

      • A minimum deposit of Rs. 1000 is required for opening this account.

   2. Tier-II Account

      • This is a voluntary account that can be added in addition to the Tier-I account. 

      • There are no time-based restrictions on deposits and withdrawals.

      • A minimum deposit of Rs. 250 is required for opening this account.

      • To open a Tier-II account, Tier-I account must be active.

      Note that the account holder will need to furnish a unique Permanent Retirement Account Number (PRAN) to avail of the liquidity benefits.

2. Portability

   National Pension Scheme or NPS can be ported through locations based on one’s job seamlessly. Your NPS account portability can be done online as well as offline without much hassle. Further, account holders are guaranteed transparency as it is a PFRDA (Pension Fund Regulatory and Development Authority) regulated scheme.

3. Flexibility

   NPS is very flexible in terms of fund allocation. Here are the two primary modes available to Canara Bank NPS subscribers:

   1. Auto Choice

      • This is the default option and is suitable for investors who are confused about which funds to invest in.

      • Allocation of assets is directly related to the age of the investor.

      • The investor does not have a say in the proportion of funds allocated. 

   2. Active Choice

      • Assets are allocated between

      • Equity

      • Corporate Bonds

      • Government Securities

      • Fund allocation can be made in different classes according to the investor’s appetite for risk. 

      • A maximum of 75% of the invested amount can be allocated under the equity option. 

      • Investors can switch between investment options. 

4. Tax Benefit

   Income Tax Act 1961	Tax Benefits
   U/S 80CCD (1)	Up to Rs. 2 lakh is tax-deductible under sections 80C and 80CCD(1B) with Tier-I NPS accounts
   U/S 80CCD 1(B)	Up to Rs.50,000 is allowed as deductions towards Tier-I investment
   U/S 80CCD (2)	For Tier-I accounts, central government employees are eligible for deductions up to 14%

5. Deposit Benefit

   The deposit amount is associated with the following features:

   • Financial contributions to the Canara NPS account can be made at any point throughout the year. 

   • There is no limit to the maximum amount that one can deposit. 

6. Withdrawal Benefit

   1. If the amount is withdrawn before 60 years of age:

      • 20% of the total corpus shall be received

      • 80% shall be annuitized compulsorily

   2. If the amount is withdrawn at the age of 60 or above:

      • 60% of the total corpus shall be received

      • 40% shall be annuitized compulsorily

Summing Up!

National Pension Scheme is a safe option to ensure fixed income after retirement. You can use the Canara NPS calculator to identify the amount you will receive based on your investments. This will help you in your financial planning for the future.