NPS Investment - Best Payment Mode
Thinking to invest in NPS for this financial year..
What is the best mode of payment?
Any best credit cards to use?
Hdfc diners / infinia.
Btw nps is not the best investment, u just defer ur tax and dont get back entre momey investment at retirement….money locks in annuity at very cheap rates.
Instead invest in stocks or mf in sip mode….u can sell at ur own will…..
dhinchakrohit wrote:Hdfc diners / infinia.
Btw nps is not the best investment, u just defer ur tax and dont get back entre momey investment at retirement….money locks in annuity at very cheap rates.
Instead invest in stocks or mf in sip mode….u can sell at ur own will…..
Diners was not accepted, anything changed recently?
caks2006407 wrote:Diners was not accepted, anything changed recently?
Don’t know, but be careful if you use hdfc cards….Recently lot of dimers complained about not getting points on NPS.
amex mrcc?
DealFinder wrote:amex mrcc?
All credit card companies now scrutinising large value nps transactions & many start considering them as business transactions not eligible for any rewards.
@caks2006407
dhinchakrohit wrote:Hdfc diners / infinia.
Btw nps is not the best investment, u just defer ur tax and dont get back entre momey investment at retirement….money locks in annuity at very cheap rates.
Instead invest in stocks or mf in sip mode….u can sell at ur own will…..
But then you end up paying taxes on all your salary plus extr gains whatever you will make on your investment in MFs
sardasa wrote:But then you end up paying taxes on all your salary plus extr gains whatever you will make on your investment in MFs
Even in NPS you need to pay Tax, Annuity is fully taxable! You just defer the taxes in NPS….Plus faltu returns of Annuity plus locked in money….No freedom to spend the money even after 60…What to do in such life man….
Enter mutual fund only if you can give regular time to it. High low achieve kroge tbi return Acha milega… Nhi to 5 to 6 b mushkil hta… Sbse Acha Ppf dekho… Ni to wait for fd rates to go up n parents ya Ghar me jo b 18+ non earning ho uske account me daalke fd krva do
dhinchakrohit wrote:Even in NPS you need to pay Tax, Annuity is fully taxable! You just defer the taxes in NPS….Plus faltu returns of Annuity plus locked in money….No freedom to spend the money even after 60…What to do in such life man….
You can withdraw 60% of your total amount in lumpsum and pay taxes on that only after retirement.
After 60 your total income would be less. So, taxes would be less on this as compared to paying taxes now.
Moreover, you are only putting 10% of your basic salary and 50k yearly in it. If you’re falling in 30% tax slab then I don’t think putting aside this much money will stop you from spending money on things that you really need in life.
sardasa wrote:You can withdraw 60% of your total amount in lumpsum and pay taxes on that only after retirement.
After 60 your total income would be less. So, taxes would be less on this as compared to paying taxes now.
Moreover, you are only putting 10% of your basic salary and 50k yearly in it. If you’re falling in 30% tax slab then I don’t think putting aside this much money will stop you from spending money on things that you really need in life.
agree, 60% can be withdrawn after 60 yrs of age.plus this option is good for person who are in 30% bracket as 80c is already exhausted by pf etc.
btw OP can use fk axis /fk ace card for nps transcation as my friend got cb
sardasa wrote:You can withdraw 60% of your total amount in lumpsum and pay taxes on that only after retirement.
After 60 your total income would be less. So, taxes would be less on this as compared to paying taxes now.
Moreover, you are only putting 10% of your basic salary and 50k yearly in it. If you’re falling in 30% tax slab then I don’t think putting aside this much money will stop you from spending money on things that you really need in life.
Annuity you get around 5pcpa taxable in hands. Even after retiring u will have fd income etc which will make u pay tax. Instead stick with MF and you get much more in long term plus withdraw at you own will.
If govt does away with compulsory annuity and bring it on par with EEE status then it will become interesting.
binod_babu wrote:agree, 60% can be withdrawn after 60 yrs of age.plus this option is good for person who are in 30% bracket as 80c is already exhausted by pf etc.
btw OP can use fk axis /fk ace card for nps transcation as my friend got cb
If you quit before 60, 80% will be locked away for pension and you can only withdraw 20%. Do not delude yourself that you will only need the money when you retire at 60. Most people who are reading this will be too tired, too stressed out, too sick to work until 60.
dhinchakrohit wrote:If you quit before 60, 80% will be locked away for pension and you can only withdraw 20%. Do not delude yourself that you will only need the money when you retire at 60. Most people who are reading this will be too tired, too stressed out, too sick to work until 60.
i agree whatevr u told.but if someone hv spare money & if they hv enough other investment from other places..then i still feel nps is fine ,since they r saving 30% tax money upfront n also nps return is quite decent like its 12% for me in last 2 yrs
dhinchakrohit wrote:Annuity you get around 5pcpa taxable in hands. Even after retiring u will have fd income etc which will make u pay tax. Instead stick with MF and you get much more in long term plus withdraw at you own will.
If govt does away with compulsory annuity and bring it on par with EEE status then it will become interesting.
I am sure that government will make it EEE
binod_babu wrote:i agree whatevr u told.but if someone hv spare money(people with 30% tax slab)..then i still feel nps is fine ,since they r saving 30% tax money upfront n also nps return is quite decent like its 12% for me in last 2 yrs
If any black swan events in market, u will just keep watching ur NPS NAV go down….Helplessly! All money locked in till 60 and beyond too….
2nd, You will keep interest component for ur next gen….Won’t enjoy in ur own life. As only 60% withdrawable…
If someone has flush money and doesn’t matter about all these points, he can go with NPS…
sardasa wrote:You can withdraw 60% of your total amount in lumpsum and pay taxes on that only after retirement.
After 60 your total income would be less. So, taxes would be less on this as compared to paying taxes now.
Moreover, you are only putting 10% of your basic salary and 50k yearly in it. If you’re falling in 30% tax slab then I don’t think putting aside this much money will stop you from spending money on things that you really need in life.
Agree on this. Also to add to this.
Even with a good job, with the current increasing cost of living, 90% of the working class won’t be able to afford setting aside savings for retirement if they want to enjoy a decent middle class “family life” right now.
Saving your retirement fund in something that can be easily liquidated, would make sure, it will not even last till your 50’s.
The tenure lock of nps makes sure you have some money left even after 60. This is when most retired people get the feeling they are now unwanted by their own family and by the increasing proportion of the younger generation in the society at large. The money saved into nps is often forgotten till its maturity at 60. This saving pot in the nps makes you glad it was the wisest financial decision you have made in your entire life.
teriab33 wrote:Agree on this. Also to add to this.
Even with a good job, with the current increasing cost of living, 90% of the working class won’t be able to afford setting aside savings for retirement if they want to enjoy a decent middle class “family life” right now.
Saving your retirement fund in something that can be easily liquidated, would make sure, it will not even last till your 50’s.
The tenure lock of nps makes sure you have some money left even after 60. This is when most retired people get the feeling they are now unwanted by their own family and by the increasing proportion of the younger generation in the society at large. The money saved into nps is often forgotten till its maturity at 60. This saving pot in the nps makes you glad it was the wisest financial decision you have made in your entire life.
going with all these argument happened,its can be summarized like below:
1. if i retire at 45(which 80% people have to do for software industry),so i cant withdraw my nps money till 60, is it worth?
2.i had retried at 45, i hv liquid money and no loans or anything.i can manage things for next 15 yrs and after that i hv nps money,is it worth?
confused between above two now..given that one can save 30% tax upfront(which is getting waste) and nps return is in range of 12-15%.
sethiansh307 wrote:Enter mutual fund only if you can give regular time to it. High low achieve kroge tbi return Acha milega… Nhi to 5 to 6 b mushkil hta… Sbse Acha Ppf dekho… Ni to wait for fd rates to go up n parents ya Ghar me jo b 18+ non earning ho uske account me daalke fd krva do
What regular time, start a sip in any good/top rated large cap MF & check once in 6 months. Top large cap MF kaa last 10-15 years kaa annualized return aur absolute return check kar liya karo pehle. 
Aur jyaada amount ki fd karwaaoge non earning 18+ members ki family mein toh IT dept kaa notice aa jaayega kyunki ismein bhi rules hote hain.
guest_999 wrote:What regular time, start a sip in any good/top rated large cap MF & check once in 6 months. Top large cap MF kaa last 10-15 years kaa annualized return aur absolute return check kar liya karo pehle.
Aur jyaada amount ki fd karwaaoge non earning 18+ members ki family mein toh IT dept kaa notice aa jaayega kyunki ismein bhi rules hote hain.
Dude…. Jo aaj number 1 zaruri ni 1 saal baad b ho… Upar neeche hte rehte… Website pe jo return hai lumpsum return hai.. SIP return dekho.. FD k b neeche jaoge… Kuch me negative b… Right now..Market has rallied to sb acha dikhra….aisa forever ni rhega…. N regarding FD… As per law… You can gift any amount to your parents tax free… Then they can open FD or do whatever they like….
“I do my homework”
Axis fk card. 1.5% less 0.9% charges.
Those who are in 30% tax slab, must invest in it. Future tax ki mat socho, abhi 15k bach rahe hai wo socho 
Thanks a lot for all the comments..
What is the best mode to open an account directly or via any banks?
dhinchakrohit wrote:Even in NPS you need to pay Tax, Annuity is fully taxable! You just defer the taxes in NPS….Plus faltu returns of Annuity plus locked in money….No freedom to spend the money even after 60…What to do in such life man….
60% of corpus can be withdrawn in lumpsum on maturity, Taxfree. Only the remaining 40% need to be converted to annuity. Yes, annuity is taxable, but then, due to lower total income after retirement, at lower tax slabs. Additional benefit available to senior citizens also become applicable.
For someone in 30% slab, NPS gives immediate cashback (tax benefits) of 15,750 on annual investment of 50K. So, considering the net amount as investment, the effective annual return is around 20-25% or even more.
dhinchakrohit wrote:If any black swan events in market, u will just keep watching ur NPS NAV go down….Helplessly! All money locked in till 60 and beyond too….
2nd, You will keep interest component for ur next gen….Won’t enjoy in ur own life. As only 60% withdrawable…
If someone has flush money and doesn’t matter about all these points, he can go with NPS…
NPS is not just equity. It is a mix of debt and equity. So even after a black swan event, the hit on NPS will actually be lower than any equity based mutual fund.
And, a smart investor never panic during black swan events. He actually puts in more money because sooner or later, the market stabilises back. All my investments made during 2nd and 3rd week of March 2020, just before Covid lockdown, have already become 3 to 4 times, some even 6 times.
Also, the advantage of NPS is its flexibility. There is no major commitment. The annual contribution can be reduced to even Rs.1000 for any given year.
binod_babu wrote:going with all these argument happened,its can be summarized like below:
1. if i retire at 45(which 80% people have to do for software industry),so i cant withdraw my nps money till 60, is it worth?
2.i had retried at 45, i hv liquid money and no loans or anything.i can manage things for next 15 yrs and after that i hv nps money,is it worth?confused between above two now..given that one can save 30% tax upfront(which is getting waste) and nps return is in range of 12-15%.
If you retire at 45, upon retirement, you get PF and gratuity. Convert that into monthly income and immediate requirements would be met. Plus, a person opts for early requirement only if he/she has already made enough savings to get the confidence that even without working, the needs would be met. In present day scenario, there are also always alternative modes of jobs available that can be less taxing and instead of full retirement, a person can opt for them. Then, by the age of 45, the mindset often changes along with changing family responsibilities. With advancement in career, you also reach a certain level, prestige and power that you may no longer be willing to let go. So you may no longer want to retire early.
PS : I am already on the wrong side of 45 and have been working for more than 2 decades. 15 years back, even I thought of retiring at 45.
Standard Chartered Ultimate or HDFC Infinia gets you 3.33% rewards
sethiansh307 wrote:Dude…. Jo aaj number 1 zaruri ni 1 saal baad b ho… Upar neeche hte rehte… Website pe jo return hai lumpsum return hai.. SIP return dekho.. FD k b neeche jaoge… Kuch me negative b… Right now..Market has rallied to sb acha dikhra….aisa forever ni rhega…. N regarding FD… As per law… You can gift any amount to your parents tax free… Then they can open FD or do whatever they like….
“I do my homework”
Ajeeb ho yaar tum, mein pichhle 10 saal sey daily newspaper mein financial section read kar raha hoon aur aaj tak kisee expert ney fd ko MF investment sey better nahi bataya except for retirees putting their final MF/PPF investment return into FD. Aur tum apne parents ko kya paisa hawa mein dogey, uss par bhi toh tumko apna income tax dena hee hoga. 80C mein exemption lene kay liye bhi elss aur nps mein toh invest karna hee hoga.
Homework kara to iskaa ye matlab nahi ki woh sahi bhi hai.
guest_999 wrote:Ajeeb ho yaar tum, mein pichhle 10 saal sey daily newspaper mein financial section read kar raha hoon aur aaj tak kisee expert ney fd ko MF investment sey better nahi bataya except for retirees putting their final MF/PPF investment return into FD. Aur tum apne parents ko kya paisa hawa mein dogey, uss par bhi toh tumko apna income tax dena hee hoga. 80C mein exemption lene kay liye bhi elss aur nps mein toh invest karna hee hoga.
Homework kara to iskaa ye matlab nahi ki woh sahi bhi hai.
Bhai…apna apna formula hai…u are comfortable with mutual fund… Please go ahead
I am not bcoz I believe in calculating CAGR on my own and not what an expert is saying. It’s same like LIC policies… Kehte kuch hai hta kuch hai… Mutual funds pay a lot for marketing, ads so that people start giving them money. Overall it’s a private company who is there to make money from your money.
It’s just my point of view. For 80C, I plan to continue to PPF a very long time after 15 years also (in 15th year fill form H for extension). Uske baad jo bacha… Parents to gift. Baki agar risk lena hai come to straight equity with a strategy. Vha asli khel hai.
sethiansh307 wrote:Dude…. Jo aaj number 1 zaruri ni 1 saal baad b ho… Upar neeche hte rehte… Website pe jo return hai lumpsum return hai.. SIP return dekho.. FD k b neeche jaoge… Kuch me negative b… Right now..Market has rallied to sb acha dikhra….aisa forever ni rhega…. N regarding FD… As per law… You can gift any amount to your parents tax free… Then they can open FD or do whatever they like….
“I do my homework”
Yes you can give gift any amount to your parents..
