What is Tier I and Tier II account?
Are they different?
Under NPS, two types of account would be available to subscribers i.e., Tier I & Tier II; Tier I account – where a subscriber contributes his / her savings for retirement into a non-withdrawable account, and a Tier II account – a voluntary savings account from which subscribers are free to withdraw the savings whenever he/she wishes. An active Tier I account along with PRAN is a pre requisite for opening of a Tier II. Furthermore, since Tier II is a voluntary savings account, the government does not contribute any amount into Tier II account.
Click here for more about National Pension Scheme-NPS
Under NPS, two types of account would be available to subscribers i.e., Tier I & Tier II; Tier I account – where a subscriber contributes his / her savings for retirement into a non-withdrawable account, and a Tier II account – a voluntary savings account from which subscribers are free to withdraw the savings whenever he/she wishes. An active Tier I account along with PRAN is a pre requisite for opening of a Tier II. Furthermore, since Tier II is a voluntary savings account, the government does not contribute any amount into Tier II account.
Click here for more about National Pension Scheme-NPS
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