Opening an NPS account has become very easy by using the eNPS facility that was made open to all in February this year. The National Pension System (NPS) has two primary account types–Tier 1 and Tier II.
Read this to understand the differences between the two account types.
The default account that gets opened when you open an NPS account is the Tier I account. The Tier II account is useful for those who want to make additional contributions and build a corpus for retirement.
Here is how you can open a Tier II account in addition to your Tier I account.
- Any subscriber who has an active Tier I account can open a Tier II account
- The Tier II account has to be opened through the subscriber’s POP-SP
- The subscriber needs to download the Annexure 1: Tier II Details form and send it to the POP-SP after it has been filled out
Follow this link to download the NPS Tier II account opening form. You will find this form under the ‘Subscriber Registration’ section. You will need to provide your bank account details as well for opening a Tier II account because the withdrawals are directly transferred to the subscriber’s bank account.
Do note that a Tier I and Tier II account can also be opened together by submitting a composite application form.