Features & Benefits
Tax deduction of up to Rs. 50,000 over and above the 80c limit.
Investors can check value of investment anytime.
Investments start with minimum Rs. 500 and Rs. 1000 for Tier 1 and Tier 2, respectively.
Investors choose from various asset classes like equity, corporate debt, government bonds and Alternate Funds and also switch from one option to another.
Every investor is identified with a unique number and Permanent Retirement Account Number (PRAN), which can be transferred from one office to another.
Withdrawal on Maturity
On completion of 60 years of age, investor receives a lump sum payment, while 40% of the accumulated corpus is mandatorily used to purchase annuity for further monthly pension payments.
Before completion of 60 years of age, investor receives a lump sum payment, while 80% of the accumulated corpus is mandatorily used to purchase annuity.
After completion of 10 years in the scheme, investor can withdraw up to 25% of the contribution for certain reasons.
Tier 1 & Tier 2 account
Tier 1: Is a Pension Account which is a non-withdrawal account. This account requires minimum contribution of Rs. 1000 per financial year. +
Tier 2: Is an Investment Account, which provides liquidity and option to withdraw entire investment. A minimum contribution of Rs. 1000 is required while opening the account and Rs. 250 per month. However, only investors with active Tier I account can subscribe for Tier 2 account.