ICICI Bank NPS – ICICI Bank National Pension Scheme 2024

ICICI Bank, one of the leading Indian multinational banks, has been providing financial services to retail and corporate customers for several years. With representative offices in the UAE, Bangladesh, Indonesia, etc. and subsidiaries in the US, UK, Singapore and more, ICICI Bank is a widely-trusted finance institution. 

Thus, by opting for the ICICI Bank National Pension Scheme, you will unlock the added safety advantage that comes with investing in this Bank. 

This blog will walk you through a comprehensive guide on ICICI NPS, a government-backed scheme launched to help individuals invest economically and securely after retirement.

What Is ICICI National Pension Scheme?

Launched by PFRDA (Pension Fund Regulatory and Development Authority) in 2004, ICICI Bank NPS is a government-backed pension scheme. It was initially only open for government officials but in 2009, it was made open for all sections of society including the NRIs. 

According to the guidelines of this scheme, you can contribute to this pension account during your working life. Post-retirement, you may draw 60% of this deposited amount. The remaining 40% will be utilised for purchasing an annuity from a life insurance company, generating a regular pension. If this seems like a fair plan that you might consider investing in, read on to discover more about the applicable interest rates.

ICICI National Pension Scheme Interest Rates 2024

Invest in the ICICI new pension scheme as a step towards your financial security even after retirement. Check out whether or not the applicable interest rates line up with your long-term financial goals: 

Navigate to the next section to explore the points of criteria which need to be met for you to invest in the ICICI NPS scheme.

Eligibility Criteria for ICICI National Pension Scheme 

The NPS in ICICI Bank is a retirement plan allowing for regulated post-retirement income. It is based on a unique number known as a Permanent Retirement Account Number (PRAN), allotted to every person who applies. By opting for this scheme, you will get access to several benefits along with a reliable source of income. 

Prior to enjoying its benefits, you have to meet the applicable eligibility criteria in the first place. Here is a list of criteria that you have to fulfil to be eligible for the ICICI National Pension System: 

1. The applicant must be a citizen of India, aged between 18 to 65 years.
2. He/she must work in a corporation which has adopted the NPS scheme.
3. He/she must comply with the KYC norms as per SRF.

If you meet these requirements, you are now ready to invest in the NPS at ICICI Bank!

Features of ICICI National Pension Scheme

Here are some of the features of the NPS scheme ICICI Bank, making it an ideal investment option, ensuring regulated income after retirement.

1. NPS provides portability across locations/jobs. It provides a seamless arrangement for the individual subscribers of NPS.
2. Monitored by PFRDA, NPS has transparent investment norms and a performance monitoring system of fund managers by the NPS Trust.
3. The ICICI Bank National Pension Scheme comes with offers from pension fund managers.
4. Under this scheme, individuals have the flexibility to choose their fund managers. 
5. You also get to have a choice for distribution.
6. The ICICI NPS scheme comes with attractive tax benefits.
7. A unique PRAN (Permanent Retirement Account Number) is assigned to every person. 

Now that you are thorough with the features of the ICICI Bank National Pension Scheme, we will discuss the tax benefits associated with it in the upcoming section.

Tax Benefits For ICICI National Pension Scheme

Once you open an ICICI Bank NPS Account, you can start investing towards a retirement corpus. With good returns guaranteed on investments, NPS is also a tax-efficient savings option. Here are some of the tax benefits you can claim on your investments:

1. The investments made into your ICICI National Pension Scheme qualify for deduction under Section 80CCD (1) up to the amount of ₹ 1.5 lakhs. 
2. Under Section 80 CCD (1B), individuals can claim a deduction of up to ₹50,000. The above-mentioned deductions are applicable for Tier I investments. 
3. Only central government employees may claim a tax benefit on investments to Tier II accounts with a lock-in period of 3 years. This contribution would be marked as a deduction under Section 80C, up to ₹1,50,000.

If these tax aspects align with your long-term financial plans, proceed to the next section to learn how you can invest in the ICICI NPS scheme.

How to Invest in ICICI Bank NPS Scheme?

One can invest in the ICICI Bank NPS scheme, through the online or offline mode. Let’s discuss these two modes in detail. 

1. Online 

Follow this step-by-step guide and invest successfully in the ICICI NPS scheme online, through the Internet banking portal of the bank.

• Step 1: Go to the “Investment and Insurance” tab and click on the “NPS” option from the main page. 
• Step 2: Select the name of the company from the drop-down menu under the “Corporate Subscriber Model”.
• Step 3: Enter your personal information and nominee details and click on “Asset Allocation”.
• Step 4: Upload your signature and your photo.
• Step 5: Click on “Submit” to proceed.

You will receive an OTP on your registered phone number. Make sure to complete the OTP verification process.

A PRAN will be generated once you have completed the document upload and verification process. So, take your first step towards a comfortable retirement by investing in your ICICI Bank NPS account.

2. Offline 

ICICI Bank is appointed as the PoP (Point of Presence), where you can go to open your NPS account. Follow this step-by-step guide on how can invest in the ICICI Bank NPS account in the offline mode: 

• Step 1: Visit your nearest PoP branch of ICICI Bank.
• Step 2: Collect the NPS subscriber form and fill it up in due time.
• Step 3: Submit the form alongside copies of supporting KYC documents.
• Step 4: Make an initial deposit of not less than ₹500 excluding tax.

You will receive a PRAN from the PoP and a password. Enter the credentials into the NSDL NPS portal or your internet banking account to operate your NPS account online.

You can invest in your ICICI NPS account in whichever mode is comfortable for you. However, before investing, make sure you keep the following documents handy to have an easy account opening process.

Documents Required for ICICI NPS Scheme

Here is a list of the necessary documents you have to submit to start your ICICI Bank national pension scheme:

1. Aadhaar Card (linked to the applicant’s ICICI Bank account)
2. PAN Card (linked to the applicant’s ICICI Bank account)
3. Passport-size colour photograph
4. Address proof (Utility Bills or Passport)
5. A scanned image of the ICICI Bank NPS applicant’s signature.

If you possess all the above-mentioned documents, it will take you a quick few minutes to create an NPS account with ICICI Bank! Lastly, go through the last section to be sure that you are caught up with every little detail associated with the ICICI Bank national pension scheme.

Things to Know About ICICI Bank NPS

Go through the list below to be thorough with every necessary detail connected to NPS with ICICI Bank:

1. You can choose between Tier I and Tier II once you subscribe to ICICI NPS.
2. Investing in a Tier II account is optional while doing so in the Tier I account is mandatory.
3. If you already have a Tier I account, you can open up a Tier II account to further invest in it.
4. A minimum amount of ₹500 has to be made to start a Tier I account and a deposit of ₹1,000 to establish a Tier II account.
5. A sum of ₹1,000 has to be contributed to the Tier I account every month to keep it activated. On the other hand, ₹250 invested in the Tier II account per financial will keep the account active and running.
6. There are 2 investment choices you can choose between Active Choice and Auto Choice. If you go for the active choice, you can invest in 4 types of funds, including asset class A, C, E and G. Alternatively, the investment can be done automatically through a combination of funds with Auto choice, once you specify your risk profile among these options: moderate, aggressive or conservative.  
7. ICICI Bank allows partial withdrawals from NPS accounts to meet expenses involved in covering marriage costs, medical emergencies and education-related spending.
8. 60% of the accumulated amount can be withdrawn in the form of cash.
9. 40% of the entire corpus can be used to pay for lifelong annuities.

With that, you are informed about every detail concerning the ICICI Bank national pension scheme!

Final Word

Hopefully, now you are well aware of the both online and offline process of investing in an ICICI Bank National Pension Scheme. With this clear understanding, you can confidently choose ICICI Bank to initiate your NPS account. However, make sure to verify the applicable rates and other associated terms and conditions, as they are subject to change. 

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Disclaimer

This article is solely for educational purposes. Stable Money doesn't take any responsibility for the information or claims made in the blog.