Corporate NPS Vs Individual NPS

Both offer tax-saving benefits and help grow your money through market-linked returns. But depending on whether you’re salaried, self-employed, or an NRI, the better option could vary.

Let’s decode how each model works and what it means for your long-term financial planning.

Individual NPS—also known as Retail NPS—is open to all Indian citizens and NRIs aged 18 to 70. Whether you’re salaried, self-employed, a freelancer, or an NRI—you can enrol voluntarily and start building your retirement fund.

This model gives you the flexibility to:

• Choose your own contribution amount
• Pick your fund manager and asset allocation
• Claim up to Rs. 2 lakh in tax deductions (under Section 80C and 80CCD(1B))

Great for: Those who want full control of their retirement planning and tax savings without relying on employer-linked benefits.

Want to grow your savings without market risks?
Try a Bajaj Finance Fixed Deposit. It offers assured returns and flexible tenures—ideal if you're looking to invest safely alongside your NPS contributions. Open FD. 

Corporate NPS is an employer-led model designed specifically for salaried individuals in registered organisations. In this setup, your employer offers NPS as a workplace benefit—and may even contribute a portion of your salary to it.

Here’s what makes it unique:

• Employer contributions are over and above your Rs. 1.5 lakh 80C limit
• You enjoy higher tax deductions under Section 80CCD(2)
• Employers can claim the contribution as a business expense

Ideal for: Salaried individuals whose companies are registered under the Corporate NPS model.

Already investing via Corporate NPS?
Complement your portfolio with a Bajaj Finance FD – Choose from a variety of payout options like monthly, quarterly, half-yearly, yearly or at maturity. Invest now!

<table><tbody><tr><td><strong>Feature</strong></td><td><strong>Individual NPS</strong></td><td><strong>Corporate NPS</strong></td></tr><tr><td>Who can invest</td><td>Any Indian citizen or NRI (18–70 yrs)</td><td>Employees of NPS-registered companies</td></tr><tr><td>Tax Benefits</td><td>Up to Rs. 2 lakh (80C + 80CCD(1B))</td><td>Employee: Same as Individual&nbsp;<br>Employer: Extra under 80CCD(2)</td></tr><tr><td>Contributions</td><td>Voluntary</td><td>Employee + Employer</td></tr><tr><td>Control</td><td>Full control by investor</td><td>Shared responsibility with employer</td></tr><tr><td>Registration</td><td>Self-enrolment</td><td>Through employer</td></tr></tbody></table><p><strong>Want to balance retirement planning with short-term goals?</strong><br>Build a dual strategy: Use NPS for long-term corpus and a 3-year FD with Bajaj Finance to meet mid-term milestones like travel, car purchase, or emergency reserves. <a href=""https://www.bajajfinserv.in/investments/fixed-deposit?sso-module=fd&dynamic-redirection=false&dynamic-redirection=false"">Check latest rates</a> (up to 7.30% p.a.).</p><p><br>&nbsp;</p><h2><strong>Types of NPS accounts</strong></h2><p>Both Corporate and Individual NPS subscribers can open:</p><h3><strong>1. Tier I Account</strong></h3><p>This is your core retirement account with tax benefits. It comes with a withdrawal lock-in until retirement (age 60), and partial withdrawal is allowed under specific conditions. On maturity, 60% of the corpus is withdrawable; the remaining 40% must be used to buy an annuity.</p><h3><strong>2. Tier II Account</strong></h3><p>This is an optional savings account. It has no lock-in, no tax benefits (unless you’re a central government employee), and works like a mutual fund with flexible withdrawals.</p><br><p><strong>Quick Tip:</strong> Tier I = Retirement planning | Tier II = Extra savings</p><br><p><strong>Looking for safe, tax-efficient savings outside of NPS?</strong><br>Open a Bajaj Finance FD in under 5 minutes online. It’s a great way to keep your capital safe while earning higher-than-bank interest rates. <a href=""https://www.bajajfinserv.in/investments/fixed-deposit?sso-module=fd&dynamic-redirection=false&dynamic-redirection=false"">Start now</a>, with just Rs. 15,000.</p><p><br>&nbsp;</p><h2><strong>Which NPS model should you choose?</strong></h2><p>Your choice depends on how you’re employed and what level of control you want.</p><ul><li>If you’re self-employed, freelance, or your employer doesn’t offer NPS – opt for Individual NPS<strong>.</strong></li><li>If you’re salaried and your company is NPS-enabled – opt for Corporate NPS to benefit from additional employer contributions and higher tax deductions.</li></ul><p>Remember, both options invest in a mix of equity and debt to give your retirement fund the power of long-term compounding.</p><p><br>&nbsp;</p><p><strong>Also Read:&nbsp;</strong><a href=""https://www.bajajfinserv.in/investments/nps-returns"">NPS Returns for Tier 1 & Tier 2</a></p>

Both Corporate NPS and Individual NPS are excellent retirement planning tools—but serve slightly different purposes. Individual NPS gives you complete control and flexibility, while Corporate NPS provides added tax efficiency and employer support.

You can even have both, depending on your employment journey. The key is to start early, stay consistent, and explore safe, stable options like Fixed Deposits alongside your long-term market-linked investments. Check latest FD rates offered by Bajaj Finance and start investing now!

 

Calculate your expected investment returns with the help of our investment calculators

Use our simple and powerful investment calculators to estimate your NPS returns and make informed financial decisions. Plan your retirement strategy more effectively by forecasting corpus value, monthly pension, and tax benefits using accurate inputs tailored to your income and contribution levels.

Investment Calculator
Fixed Deposit Calculator	SSY Calculator	PPF Calculator
RD Calculator	PF Calculator	Gratuity Calculator