How to Open NPS Tier II Account? How to Open NPS Tier II Account Online?

There are two types of accounts available in the National Pension System (NPS) i.e. Tier I & Tier II accounts. Tier I account is the pension account and Tier II is the voluntary account (not mandatory). NPS Tier II account is just like a savings account and those NPS subscribers, who already have an active Tier I account, can open a Tier II account at a later date also if they do not want to open it with Tier I account. NPS Tier II account can be opened either offline or online using NPS portal.

How to Open NPS Tier II Account Online?

It is to be noted that in order to open NPS Tier II account, it is mandatory to have an active Tier I NPS account and PRAN. Outlined below is the step by step process to open NPS Tier II Account Online:

  1. Login to the eNPS portal
  2. Click on "National Pension System" button
  3. Now, click on "Tier-II activation option"
  4. You will be redirected to "Subscriber services - Tier-II activation option" page
  5. Enter the details such as Permanent Retirement Account Number (PRAN), date of birth and PAN
  6. Enter Captcha code
  7. Click on "Verify PRAN" button, which will submit the form for activation
  8. After that you can click on the eNPS portal
  9. Click on "National Pension System" button
  10. Now, click on "Contribution" button for making contribution online

Points to Note regarding Opening NPS Tier II Account

  • Subscriber cannot claim any tax benefits against contributions in NPS Tier II account.
  • Subscriber can decide allocation of funds in different asset classes according to his own choice.
  • In case subscriber unable to do eSign, Print the form, paste photograph & affix signature and submit the Form to CRA.
  • No limit on the number of contribution or withdrawals in NPS Tier II account.
  • Bank details are mandatory for Tier-II else, account will not be activated.
  • At least one contribution must be made in a year, once you open NPS Tier II Account, minimum amount of contribution that must be made is Rs.250.

How to Open NPS Tier II Account Offline?

NPS Tier II account is a voluntary account and not a mandatory one. It depends solely on your choice whether you want to open it or not. You can open it anytime. When you open it and invest in this account, your money gets invested in different funds just like a mutual fund. Moreover, you are free to withdraw the money any time without any restrictions just like you withdraw from your savings account. You can use Tier II account to build a huge corpus for your retirement. Outlined below is the step by step process to open NPS Tier II Account offline:

  1. You can approach the POP-SP for Tier II activation form or download it by clicking the link
  2. Fill up all the details in the form like bank details, nominee, etc. Subscriber can nominate a maximum of three nominees. If a nominee is a minor, then nominee's guardian details shall be mandatory.
  3. Select PFM (pension fund manager)
  4. Select investment option from "Active choice" and "Auto choice"
  5. Fill up Asset Allocation (to be filled up only in case you have selected the "Active Choice" investment option)
  6. Affix your signature
  7. Enclose documents: Copy of PRAN card, Proof of identity, Proof of address, Proof of date of birth and cancelled cheque
  8. Submit the form to the POP-SP for processing and activation
  9. An initial contribution of minimum Rs 1,000 may be made by a cheque