CKYC Registry
Customer care hotline Call 1800 10 888
Most Searched
Top Products
Popular Searches
Bank Accounts
Populer FAQs
Signature is important and it is required to avail various products and services. To upload your signature
1. Go to More
2. Select Customer Service Dashboard
3. Select ‘Savings/Current Accounts’
4. Select ‘Upload Signature’ to upload your signature.
That's easy! Follow these steps to track your service requests:
1. From the home page of the app, tap on "Customer Service" section
2. Scroll down to "Track my service requests" to find all your requests
We couldn’t find ‘’ in our website
Suggested
Get a Credit Card
Enjoy Zero Charges on All Commonly Used Savings Account Services
Open Account NowEnjoy Zero Mark-up on Forex Transactions on your FIRST WOW! Credit Card
Apply NowGet the assured, FD-backed FIRST Ea₹n Credit Card
Apply NowPension plans are beneficial as they help meet your financial needs after retirement. A National Pension System (NPS) is one such plan that offers a suitable investment option for your retirement years. The scheme provides numerous features and benefits, from tax rebates to various withdrawal and deposit flexibility. Additionally, these plans come with two account preferences, i.e., Tier 1 and Tier 2. Each tier has unique benefits, with each discussed below.
Tier 1 and Tier 2 are two types of NPS accounts. Both have a similar structure and charges, but you must have a Tier 1 account to open a Tier 2 NPS account. A Tier 1 NPS account requires an initial minimum investment of ₹500. After that, you can invest in multiples of 1000 every year to build a retirement corpus.
Once you reach 60 years, you can withdraw up to 60% of your accrued corpus, while the remaining 40% will be consumed to buy an annuity for a regular pension after your retirement. On the other hand, you can open a voluntary Tier 2 account with a minimum investment of ₹1000 and withdraw whenever you wish, just like a savings account.
Backed by the central government, NPS accounts are one of the most suitable long-term investments to secure yourself financially after retirement.
An added advantage that an NPS offers is tax exemption on investments of up to ₹2 lakh rupees with a maximum deduction of 10% of the salary. In addition to NPS, several other investment options can help you save on income tax.
IDFC FIRST Bank offers high-yielding fixed deposits (FDs) with interest rates up to 7.25% per annum. Moreover, investments of up to ₹1.5 lakhs in IDFC FIRST Bank FDs can be claimed under tax deductions. Watch the video below to learn more.
A Tier 1 account is mandatory for opening a Tier 2 NPS account. However, the key difference between a Tier 1 and Tier 2 account lies in the deposit and withdrawal flexibility. Both accounts are designed for retirement purposes, but based on your financial requirements, you can utilise funds from your NPS account as per their terms and conditions. Here are the common differences between Tier 1 and Tier 2 NPS accounts.
Individuals aged between 18 to 60 years can open a Tier 1 NPS account with a minimum investment of ₹500. However, as far as Tier 2 accounts are concerned, individuals holding Tier 1 accounts can only open Tier 2 NPS accounts.
Tier 1 investors must invest at least once per year to keep the account active. However, there is no such rule for a Tier 2 account holder.
The lock-in period for Tier 1 NPS accounts is until the account holder turns 60. However, Tier 2 account holders have no lock-in period.
Tier 1 NPS account holders are eligible for tax exemptions on the contribution of up to 1.5 lakhs per year under Section 80C. They can also avail of a tax benefit of up to ₹50,000 on Section 80CCD (1B). In contrast, Tier 2 NPS account holders can’t avail of any tax benefits.
You can hold a Tier 1 or Tier 2 NPS account, depending on your financial needs. However, you need to have a Tier 1 account to open a Tier 2 NPS account. Tier 1 account offers growth for building adequate corpus after retirement, while Tier 2 NPS accounts provide liquidity and easy access to your funds.
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirstbank.com for latest updates.