NPS is a retirement plan that lets you earn enough interest over a long term. You can withdraw the NPS corpus only after retirement but in some cases, even partial withdrawal can be done before maturity. However, premature withdrawals are allowed up to a certain limit only for specific reasons. The reasons for which you can withdraw your NPS amount prematurely are given below:
- Higher education or marriage of children
- Buying a home alone or with spouse
- Serious medical surgeries like organ transplant or illnesses like cancer, dialysis, etc.
- Life altering accidents and other types of illnesses that are notified by PFRDA
Also, up to 25% of the deposited amount can be deposited only if you have been investing for a minimum of 3 years in NPS. If you have opened an NPS Tier-1 account.
Steps for withdrawing NPS amount online:
- Visit the website of NSDL-CRA. Login your account with your PRAN (Permanent Retirement Account Number) and password.
- Find the ‘Transact Online’ option and click on it. You will find an option saying ‘Withdrawal’. Click on it and select ‘Tier-1 partial withdrawal’ from the given alternatives.
- Now, enter your PRAN and submit your withdrawal request. Finally, provide the withdrawal reason and percentage of the NPS amount that you wish to withdraw from your Tier-1 account. Click on the ‘Submit’ button again to complete the process.
If you are investing in an NPS Tier-2 account, you will need to take the assistance of POP-SP (Point of Presence – Service Provider) appointed by PFRDA to initiate the withdrawal request. A form UOS-S12 needs to filled and submitted with all the required documents. If your request gets accepted, the NPS amount will be credited to your account within 3 working days.
The strict terms and conditions put forth by PFRDA when it comes to NPS withdrawal might make you think of other investment options that facilitate uncomplicated premature withdrawals. Fixed deposits allow you to withdraw the deposits after completion of a minimum tenor easily. Also, the FD can assist your both short and long term goals due to the wide tenor range offered by FD providers.
Bajaj Finance FD is one of the best FD schemes in India as it gives you the opportunity to grow your deposits at FD rates of up to 7.05%. The lenient terms and conditions when it comes to premature withdrawals help you to manage a financial crisis without stressing out. Only 3 months need to completed to withdraw your deposits early. Also, you have the alternative of taking a loan against FD without submitting any collateral. Some other interesting features of Bajaj Finance FD explained below:
Higher returns for senior citizens
A higher FD rate of 0.25% is offered to senior citizens who invest in this FD scheme. Therefore, the returns are slightly better. Senior citizens can also select from monthly, quarterly, yearly, and six-monthly interest payouts to manage their expenses after retirement.
Flexible options to invest
With Bajaj Finance FD, you get a flexible tenor range to plan your investments conveniently. You can pick a tenor from 12 to 60 months and the option of investing in multiple FDs via a same pay cheque is also available. By laddering FDs, you can increase the maturity points to satiate your liquidity needs. Also, investing some deposits for a shorter tenor may help you to reinvest the consolidated returns at a higher FD interest rate as interest rates usually increase with time.
The high FAAA/stable ratings given by CRISIL and MAAA/stable rating of ICRA establish that Bajaj Finance FD is a safe investment platform. The online FD form along with CKYC process and online payment options such as net banking and UPI make the investment process hassle-free and convenient.