What is NPS in IDBI Bank?

The National Pension System (NPS) in IDBI Bank is a retirement savings scheme that allows individuals to invest regularly during their working life to build a retirement corpus, which can be used to secure a pension after retirement.

Does IDBI Bank give a pension?

Yes, IDBI Bank offers the NPS, which helps subscribers accumulate funds for retirement. Upon reaching retirement age, subscribers can use their accumulated wealth to purchase an annuity, which provides a regular pension.

Is IDBI Bank NPS good for employees?

Yes, the IDBI Bank NPS is beneficial for employees as it offers tax benefits, flexible investment options, and the potential for higher returns through market-linked investments, making it an attractive retirement planning tool.

Can NRIs invest in IDBI Bank NPS?

Yes, Non-Resident Indians (NRIs) can invest in the NPS through IDBI Bank by completing the necessary application process and providing valid documentation.

What are the tax benefits of investing in IDBI Bank NPS?

Individuals can claim a tax deduction of up to â¹1.5 lakh per annum under Section 80CCD(1) of the Income Tax Act for their contributions. Also, an additional deduction of up to â¹50,000 is available for contributions made to the NPS under Section 80CCD(1B).

IDBI Bank NPS Account

The IDBI NPS Scheme is a retirement savings plan of the National Pension Scheme (NPS) regulated by the Pension Fund Regulatory and Development Authority (PFRDA). It helps you build a financial corpus for a secure and stress-free retirement.

Peaceful Post-Retirement Life
Tax Free Regular Income
Wealth Generation to beat Inflation

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Insurance Partners

4.2 Crore

Policies Sold

Invest ₹6,000/month & Get Tax Free Monthly Pension of ₹60,000

Get the best returns & make the most of your golden years

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7.7 Crore

Registered Consumer

Insurance Partners

4.2 Crore

Policies Sold

Disclaimer: ##Rs 60,000 are the monthly pension amounts at the assumed rate of return of 8% p.a. and 4% p.a. for unit linked insurance plans. This is an illustrative example and the returns are not guaranteed & dependent on the policy term and premium term availed along with the other variable factors. The market linked return of 60K per month is for an 18 year old investing 6k per month for 20 years in a whole life policy having policy term 82 years in which Systematic partial withdrawals start at the age of 65 years at 5% rate of withdrawal per year. The investment risk in the policy is borne by the policyholder. All Plans listed here are of insurance companies’ funds. *Tax benefits and savings are subject to changes in tax laws. All Plans listed here are of insurance companies’ funds. Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

Fund Name

AUM

NAV

Returns (in %)

3 Year

5 Year

10 Year

Max Life High Growth Fund

AUM:8,243 Cr

8,243 Cr

NAV

120.7

-0.87%

Returns

27.73%

Returns

31.47%

Highest Return

Returns

19.3%

Get Details

Bajaj Allianz Accelerator Mid-Cap Fund II

AUM:6,109 Cr

6,109 Cr

NAV

86.97

-0.35%

Returns

20.48%

Returns

22.28%

Highest Return

Returns

15.61%

Get Details

HDFC Standard Opportunities Fund

AUM:38,633 Cr

38,633 Cr

NAV

78.45

-0.37%

Returns

18.47%

Returns

22.64%

Highest Return

Returns

15.48%

Get Details

Disclaimer:
†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

What is the IDBI Bank NPS Scheme?

The IDBI Bank NPS Scheme is a government-sponsored pension scheme designed to encourage systematic savings for retirement. It offers long-term investment options with tax benefits and flexible investment choices. IDBI Bank acts as a Point of Presence (POP), allowing you to open and manage your IDBI NPS account easily.

IDBI NPS Calculator

Your Age

Years

18 Years 59 Years

Enter Your Age

Monthly Investment

₹

₹500 ₹10L

Enter Investment Per Month

Expected Return on Investment

5% 15%

Expected Return on Investment

Percentage of Corpus Allocated for Pension

40% 100%

Enter Corpus Percentage

Expected Return from Pension

5% 15%

Enter Annuity Return

₹0

Your Monthly Pension

₹0

Your Monthly Pension

Your Pension Calculation

Total Investment

Returns Earned

Maturity Amount

Maturity Amount split (Lumpsum & Pension)

60%

Lumpsum Amount

At the age of 60 Yrs

40%

Pension Wealth

At the age of 60 Yrs

Features of the IDBI NPS Account

The National Pension Scheme (NPS) available through IDBI Bank comes with several benefits that make it a reliable choice for retirement planning:

Two Account Options:
- Tier-I Account: Mandatory and designed for retirement savings with limited withdrawal options.
- Tier-II Account: Optional savings account with flexible withdrawal.
Tax Savings: Enjoy tax deductions of up to ₹1,50,000 under Section 80CCD(1) and up to ₹50,000 under Section 80CCD(1B).
Low-Cost Investment: Minimal fund management fees and transaction charges.
Customizable Investment Options: Choose between Active Mode (self-allocation of funds) or Auto Mode (pre-defined allocation based on age).
Portability: Subscription to the NPS in IDBI bank is accessible across India and remains active even if you change jobs or locations.

NOTE: You can use an Income Tax Calculator to estimate your savings through tax benefits under IDBI NPS account.

Eligibility Criteria to Apply for the IDBI NPS Account

To be eligible for the IDBI NPS account, you must meet the following criteria:

Age: 18 to 70 years.
Citizenship: Open to both Indian residents and NRIs.
KYC Compliance: Submit valid KYC documents for verification.

Steps to Invest in the IDBI NPS Scheme

It is simple and easy to Invest in this pension plan by following these steps:

Visit your nearest IDBI Bank branch or the official NPS website.
Fill out the registration form for NPS in IDBI Bank.
Provide the required documents (ID proof, address proof, etc.).
Decide your investment mode – Active or Auto.
Make an initial deposit (minimum ₹500 for Tier-I, and so on).
Receive your Permanent Retirement Account Number (PRAN).

Use an NPS Calculator that simplifies your investment planning by estimating your retirement corpus and monthly pension based on your contributions, investment growth, and annuity options.

NPS Account Opening Form for NRI in IDBI Bank

NRIs can easily open an NPS account by following the steps mentioned below:

Submit the IDBI NPS Scheme application form designed for NRIs.
Provide passport, visa, or OCI/PIO card copies.
Submit Indian or overseas address proof and bank account proof (NRI Accounts- NRE or NRO Account).
Ensure compliance with FEMA regulations for contributions.

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Invest ₹10K/Month YOU GET ₹1.5 LAKHS^* MONTHLY PENSION View Plans

Invest ₹7K/Month YOU GET ₹1 LAKHS^* MONTHLY PENSION View Plans

Invest ₹5K/Month YOU GET ₹75 THOUSAND* MONTHLY PENSION View Plans

standard T&C Apply *

Documents Required for the IDBI NPS Scheme

The following documents are required to open an IDBI NPS account:

Identity Proof: Aadhaar, Passport, or PAN card.
Address Proof: Utility bills, Aadhaar, or Passport.
Age Proof: Birth certificate or PAN card.
Bank Details: Canceled cheque for linking your account.

Contributions to the IDBI NPS Account

The contribution structure for the NPS in IDBI Bank is as follows:

Criteria	NPS Tier-I Account	NPS Tier-II Account	Composite Application (Tier-I + Tier-II)
Minimum Contribution for Opening	₹500	₹1,000	₹1,500
Minimum Contribution Amount	₹500 per month and ₹1,000 per year	₹250 per contribution	–
Minimum Contributions Per Year	At least once	At least once	At least once
Prerequisite	Not Applicable	Active Tier-I account required	Both accounts activated simultaneously
Additional Requirement	Not Applicable	Canceled cheque for account opening	Canceled cheque with application form

There is no upper limit on contributions in the IDBI NPS Account, allowing you to invest according to your financial goals.

Example of IDBI Bank NPS Scheme

Meera, a 40-year-old marketing professional, opened an NPS Tier-I account with IDBI Bank.

Investment: ₹5,000 per month.
Tax Benefit: Every year she claims ₹50,000 under Section 80CCD(1B) and ₹1.5 lakh under Section 80CCD(1).
Returns: Meera selects Auto Mode. Assuming an average 9% annual return, her corpus grows to ₹33.4 lakh over 20 years.

At retirement, she withdraws 60% tax-free and invests 40% of the corpus (₹13.35 lakh) in an annuity plan, ensuring a regular pension.

Conclusion

The IDBI NPS account provides a structured approach for individuals aiming for financial security in retirement. With its flexible investment options, tax benefits, and low-cost structure, it represents a compelling choice for both salaried employees and self-employed individuals looking to secure their future.

FAQs

What is NPS in IDBI Bank?

The National Pension System (NPS) in IDBI Bank is a retirement savings scheme that allows individuals to invest regularly during their working life to build a retirement corpus, which can be used to secure a pension after retirement.
Does IDBI Bank give a pension?

Yes, IDBI Bank offers the NPS, which helps subscribers accumulate funds for retirement. Upon reaching retirement age, subscribers can use their accumulated wealth to purchase an annuity, which provides a regular pension.
Is IDBI Bank NPS good for employees?

Yes, the IDBI Bank NPS is beneficial for employees as it offers tax benefits, flexible investment options, and the potential for higher returns through market-linked investments, making it an attractive retirement planning tool.
Can NRIs invest in IDBI Bank NPS?

Yes, Non-Resident Indians (NRIs) can invest in the NPS through IDBI Bank by completing the necessary application process and providing valid documentation.
What are the tax benefits of investing in IDBI Bank NPS?

Individuals can claim a tax deduction of up to ₹1.5 lakh per annum under Section 80CCD(1) of the Income Tax Act for their contributions. Also, an additional deduction of up to ₹50,000 is available for contributions made to the NPS under Section 80CCD(1B).

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.