Here s What you Should Know about National Pension Scheme

If you are an employee in a private organization or self-employed then also you can get a good amount as a pension after retirement. For that, you need to simply invest in the National Pension Scheme or NPS. The early you start contributing towards NPS, the higher the pension you will get post-retirement. NPS is a scheme introduced by the Government of India to provide social security to the citizens.

Here are some important things that you must know about the NPS scheme:
In NPS, part of your investment is further invested in equities, corporate funds, fixed income instruments, and other securities. Though NPS does not provide guaranteed returns, it usually provides returns at 8% to 11% depending upon your choice of instruments. Therefore, it provides much higher returns than other government-backed schemes like PPF or NSC.

You can check your NPS funds online on the NSDL website by logging in with your PRAN and password. If you don’t find your funds to be performing as per your expectations, you even have the option of changing your fund manager.

As per this scheme, you can invest a part of your income regularly during your employment. A part of the accumulated amount (60%) with interest will be paid to you after retirement and you will receive the remaining amount (40%) via a monthly pension.

Now, you can even withdraw your NPS partially (about 25%) in case of medical emergencies or if you need financial assistance immediately. The medical emergency or critical illness can be for any of the close relatives of your family including father, mother, spouse, and children.

You will need to invest in the NPS scheme for at least 3 years before becoming eligible for the partial withdrawal. The partial withdrawal needs can be done after every five years. However, you will be exempted from this condition in case of a medical emergency.

Though NPS is a lucrative investment option, you cannot use it for your regular expenses freely. Therefore, if you need some extra funds for managing your expenses after a few months then the NPS will not come in handy. To tackle this, you can invest a portion of your income in a high-paying FD like Bajaj Finance FD. The high returns offered by this FD scheme along with the features mentioned below make it an uncomplicated and beneficial investment alternative for you:

Higher returns
You will get sufficient returns after investing in this FD scheme as an FD interest rate of up to 7.25% can be availed by investing in fixed deposit plans from Bajaj Finance. This is one of the best FD interest rates in India which will help you to carry out your future investment plans without any issues.

Regular interest payout
Bajaj Finance FD can be used to take care of your regular expenses post-retirement or even during your employment years. This is because the non-cumulative FDs offered by Bajaj Finance lets you withdraw the accumulated interest as a payout after every 1, 3, 6, or 12 months.

Senior citizens get an extra 0.25% on investing in its FD plans whereas investors are eligible for 0.10% on utilizing the online FD form for investing.

Loan against FD
If you need a higher amount for your child’s marriage, medical emergency, or for any other reason, you can apply for up to 75% of your FD value as a loan. This nullifies the need of withdrawing your deposits prematurely and your deposits will keep on growing till the maturity date.

Safety
Bajaj Finance FD carries the highest credit rating of FAAA/stable from CRISIL and MAAA/stable by ICRA. This indicates that your capital is safe and you will receive your returns on time without any hassles.