How to Calculate the National Pension Scheme?

The National Pension Scheme is a government-run pension scheme that offers excellent retirement saving options to all the citizens of India. Anyone employed in the private or public sector can get enrolled in the NPS and build up a retirement corpus for himself. The National Pension Scheme offers various other benefits too, and this makes the scheme an ideal choice for those who like planning ahead for their golden years. Take a look at this article to know more about the NPS and how you can invest properly in the scheme to get the best returns.

Using the NPS calculator online

As stated, you need to plan your retirement corpus in accordance to your needs. You can invest in various sums in the NPS account, with the minimum yearly amount being INR 1000. It is always a good idea to use the NPS calculator online to calculate how much you should invest in order to have a secured retirement. The online NPS calculator takes the following into consideration:

• Age -
  This is an important factor as the age will determine how many years you have to save in the NPS account.
  
  

• Principal -
  The amount you invest will determine your return.
  
  

• Interest -
  The interest you expect to earn will also have an impact on the NPS investment online.
  
  

• Percentage of an annuity -
  The percentage of the fund you want to invest in the annuity is another important factor that the NPS calculator will look for.

Once you enter these figures in the NPS calculator online, your returns will be shown to you.

NPS investment online

It is very easy to start an NPS investment online. You can use any reliable app such as the ETmoney app and instantly start an online NPS account. The advantages of having your NPS investment online include:

• Very easy to open -
  You can open a National Pension Scheme account online in a very simple and hassle-free manner. You can simply download the ETmoney app and get the job done in a matter of a few minutes. You can do so from the comforts of your own home, as the account is accessible remotely. 

• Easy to make payments -
  You can make all future contributions to the NPS account online with the click of a few buttons only. This makes it very simple for you to be regular and more disciplined with your savings in the NPS account.
  
  

• Can keep track -
  The National Savings Scheme details are available on the app you use to open the account. If you need to go and fetch any information related to the account, or you want to go over the details of your account, you can do so online in a matter of a few minutes.
  
  

• Easy to make withdrawals -
  Partial withdrawals are allowed in NPS after you complete seven years in the policy. If you need to make a withdrawal to meet an emergency, you can raise a request for it online and have the money in your bank account in a very short span of time.

The documentation is very simple and so you can instantly open the NPS account online. You just need a few basic KYC documents and your online NPS account will be set up.

The final word

If you are looking to invest in a reliable pension scheme, NPS is one of the best options you have. You can use a very effective NPS calculator online to calculate your returns before you invest. Then, you can make the NPS investment online in a trustworthy and quick manner. With so many benefits on offer, you should open the NPS account right away, if you have not done so already.

How is Fixed Deposit better than any other investment?

A fixed deposit is a very good and safe investment option that many people opt for. There are several benefits you get when you open a fixed deposit account. From steady rates of interest to low risk and FD helps to stabilize your financial portfolio while bringing in some good returns. Read on to know more about the fixed deposit rates and other benefits and understand why you need to make a few FD investments as well.

Factors that make a fixed deposit a great investment

It is always a good idea to invest in a fixed deposit. You can download a good personal finance app and start your FD investments today. Here are a few reasons why:

1. Better interest than RDs -
   There are two types of bank deposits that you can go for - the fixed deposits and the recurring deposits. While both are safe and fruitful, you get better interest rates in FDs than you do in RDs. The FD interest rates in SBI, for example, range between 5% and 6%, while the RD interest rates stay around 4% to 5%. Therefore, you get high-interest returns when you invest in an FD.
   
   

2. Better liquidity than post office schemes -
   Another reason for you to consider a fixed deposit is that it offers better liquidity as compared to the post office savings schemes. The popular post office schemes such as the PPF and NSC have long lock-in periods that last for years. Even if you have an emergency, you don't have access to your own funds. This is not the case with the FDs, as you can break a fixed deposit at any time if needed. The fixed deposits are also available in short durations, at times as low as 7 days. The fixed deposit rates differ with the duration, but an FD is definitely more flexible.
   
   

3. Less risk than mutual funds -
   The FD interest rates in SBI, as well as other banks, are fixed. They do not change as per the market conditions. This fetches you fixed returns, unlike that of the mutual funds. A mutual fund is a much riskier savings option as compared to a fixed deposit. It surely has the potential to earn higher returns, but the risk is much higher and not suitable for everyone.
   
   

4. Guaranteed returns -
   If you want to earn some safe and fixed yields, depending upon a fixed deposit is a good idea. The fixed deposit rates are always fixed so you know right from the beginning how much you stand to earn. This helps you to make and stick to financial goals in an easy and successful manner.
   
   

5. Tax saving -
   If you log in to your personal finance app and look for some tax-saving investments, you will find the fixed deposits there as well! Yes, there are some special fixed deposits that help you to save tax. These FDs have a slightly different interest rate structure and lock-in period clause. Read the terms carefully and then invest to get the best returns and to save your tax as well. Tax Saving Fixed Deposits have a lock-in of 5 years.
   
   

6. Reliable -
   And last but not the least, you get to make a very reliable and bankable investment when you opt for a fixed deposit. As you know, the FD interest rates in SBI and other banks are fixed. All the other clauses are fixed and transparent too, so there is no room for any ambiguity or confusion. As a result, you end up with a secured and reliable investment.

The final word

These are the factors that prove that a fixed deposit is indeed one of the best investment options that you have. Download a good personal finance app and start your FD investments right away.