SBI Offers Auto Debit Facility For Investing In National Pension System (NPS)
State Bank of India (SBI) has given the facility of auto debit to the customers to contribute to the National Pension System (NPS) account. There is no fixed interest rate on NPS but it gives market linked returns by adjusting it in the portfolio.
NPS gives two options for members to design their portfolio – Auto Choice and Active Choice. Through SBI’s auto debit or auto-video facility, the customer tells the bank that he should credit the fixed amount on regular basis in the NPS account.
NPS account type
Two types of accounts of NPS are Tier 1 and Tier 2. There is a Tier 1 pension account, which can not be withdrawn. There is a Tier 2 Investment Account which can be withdrawn. Tax benefits are also available on the Tier 1 account, while Tier 2 does not have any tax-related benefits. NPS account can be opened between 18 years and 65 years of age.
Under NPS, the investor can decide where to put the money. For instance, the subscriber can decide how much investment in asset assets such as equity funds and securities.
SBI Auto Debit or Standing Instruction (SI) facility is like SIP (Systematic Investment Plan). Investments in the investment mutual fund invested in the amount of time. Interested Subscribers can register for Standing Instruction (Auto Debit). There is a facility of both online and offline for bank monthly NPS contribution. For online auto debit facility, the user has to go to SBS’s Internet Banking Portal on the option of NPS Contribution. In the offline mode, the investor has to submit the physical form to the SBI’s NPS for the registered branch.