National Pension Scheme (NPS) Calculator SBI: Plan Your Retirement with Multiple Benefits

Last Updated : March 28, 2023, 3:36 p.m.

A popular scheme that the Indian Government launched for its citizens is the National Pension Scheme so that the citizens can have a safe and stable income source even after retirement. The National Pension Scheme provides privileges to every section of society. The National Pension Scheme in SBI has multiple benefits for account holders.

What is the National Pension Scheme of the State Bank of India?

According to the rules, you can open a National Pension Scheme account if you are between 18 to 60 years of age. You can choose to open an e-National Pension Scheme account with the help of your Aadhaar Card and Permanent Account Number information. A specialised unit of the Pension Fund Regulatory Development Authority administers the National Pension Scheme to secure your life post-retirement financially.

The crucial aim of the National Pension Scheme in SBI is to provide financial support to everyone after retirement. The National Pension Scheme is highly beneficial because it financially offers financial security to the investor and the family with a minimum investment amount.

What is the National Pension Scheme Calculator in the State Bank of India?

The NPS calculator SBI helps to estimate the returns from National Pension Scheme investments. The National Pension Scheme calculator in the State Bank of India helps to estimate the possible monthly pension and the overall amount of the gained wealth. Depending on the inputs, the SBI NPS calculator evaluates the return. Moreover, the State Bank of India National Pension Scheme calculator will automatically figure out the pension amount and the wealth gained from your investments in the National Pension Scheme.

The SBI NPS calculator helps to understand your existing financial standing and plan your investments further, remembering your financial needs for the future. It is significant to remember the future aspects before making any type of investment.

The SBI NPS calculator helps calculate the lump sum amount you can expect to receive from the SBI NPS investment after your retirement. You can effortlessly open the compound interest formula to figure out the National Pension Scheme amount if you enter some basic information about yourself and the scheme.

Requirement of the State Bank of India National Pension Scheme Calculator

The NPS calculator SBI the inputs mentioned below:

• Type of Investment- Monthly or Yearly
• Amount of Investment- The amount you want to invest in the SBI NPS in a year or a month.
• Age
• Expected Return Rate
• Annuity Purchase Percentage
• Expected Return on Annuity
• Annuity Period

The State Bank of India National Scheme Maturity Value Calculation

With the help of the entered inputs, the NPS calculator SBI estimates the value mentioned below:

For Thirty Years Contribution

• Principal Amount- Total of all the National Pension Scheme contributions.
• Earned Interest
• Pension Wealth
• Reinvested Annuity

After Retirement

• Lump Sum Withdrawal Amount
• Pension Monthly- Estimating the Monthly depending on the corpus amount during retirement.

Eligibility Criteria of the State Bank of India National Pension Scheme

The eligibility criteria for the National Pension Scheme in SBI are as follows:

• Only Indian citizens residing in the country can open a National Pension Scheme account in the State Bank of India.
• To open a National Pension Scheme account in the State Bank of India, your minimum age must be 18 years.
• For opening a National Pension Scheme in an SBI account, your maximum age must be 65 years.
• You can not own more than one National Pension Scheme account.
• Before applying for a National Pension Scheme account in the State Bank of India, Know Your Customer Compliance is mandatory.

Procedure to Invest in the National Pension Scheme Account in the State Bank of India

The procedure to invest in the National Pension Scheme in SBI are as follows:

• You can visit the official portal of the National Securities Depository Limited.
• You can follow the guideline for the registration procedure.
• You can enter the basic details, such as your Aadhaar Card, Permanent Account Number, name, residence address proof, email address, mobile number, age, etc.
• After entering your basic details, you will receive a one-time password on your registered mobile number.
• After you receive the one-time password on your registered mobile number, you can enter the OTP.
• According to your convenience, you can select the investment type.
• You can choose an investment strategy, such as Auto or Active Choice.
• You can enter the nominee information.
• When the registration procedure is completed, you can access your National Pension Scheme account in the State Bank of India.
• After the registration procedure is done, a Permanent Retirement Account Number is generated.

Characteristics of the National Pension Scheme in the State Bank of India

Some characteristics of the National Pension Scheme in SBI are as follows:

• Opening the Tier 1 account for investment in the National Pension Scheme in the State Bank of India is mandatory.
• To open a Tier 1 NPS account, you can make a minimum contribution of Rs. 500.
• If you are a Tier 1 NPS account holder, you can open a Tier 2 NPS account.
• The National Pension Scheme in the State Bank of India offers tempting associated returns.
• Non-Resident Indians can not open a National Pension Scheme account in the State Bank of India.

Privileges of the National Pension Scheme in the State Bank of India

Some privileges of the National Pension Scheme in the State Bank of India are as follows:

Liquidity

The NPS is great for liquidity because the contributions made are systematic. To take advantage of the liquidity privileges, you must have one NPS account- Tier 1 or Tier 2, and a Permanent Retirement Account Number.

Portability

Compared to the other plans in the market, portability is one of the biggest privileges of the SBI NPS. If you change jobs or relocate to another place, you can carry your NPS account smoothly online without any hassles. Since it is a PRFA-regulated scheme, transparency is assured.

Conclusion

The Pension Fund Regulatory Development Authority administers the National Pension System that the State Bank of India offers. The SBI NPS calculator will help you know the lump sum amount when you retire at sixty years old. It would be helpful to contribute towards the National Pension Scheme. The more money you invest, the more will be the cumulative amount, and the larger will be the privilege of the cumulative pension amount. The monthly compounding power makes the National Pension Scheme a tempting retirement solution.