Here’s all you need to know about NPS Tier II account

• Follow

NPS has emerged as a popular retirement investment option. It gives investors a wide range of flexibility with an option to invest in equities, government, or corporate bonds. This scheme is open to all Indian residents and anyone who registers with NPS. It offers two kinds of investment- NPS Tier-I and NPS Tier-II.

NPS Tier account is an add-on account. A person can voluntarily open it. However, only those who have a Tier-I account can open the Tier-II account. It is an optional investment account, which is available only to active Tier-I account holders and is not a pension account. NRIs are not allowed to open Tier-II accounts, only Indian citizens can open. There are no withdrawal restrictions when it comes to Tier-II account.

It allows investors to withdraw money unlimited times and gives the advantage of a low-cost structure.