What is NPS Tier 2 account?

NPS Tier 2 is a voluntary, flexible savings account with NPS that has no lock-in (except 3 years for Central Govt employees claiming 80C deduction). You can withdraw anytime. It invests in the same low-cost NPS funds but without the retirement restriction.

Is NPS Tier 2 taxable?

For Central Govt employees only: contributions up to ₹1.5L/year with 3-year lock-in qualify for Section 80C. On withdrawal: entire amount is taxed at slab rate (unlike equity MFs which enjoy 12.5% LTCG). Tax efficiency depends on your slab.

What is the expense ratio of NPS Tier 2?

NPS charges just 0.01% fund management fee — the lowest of any investment in India. This compares to 0.5-2% for mutual funds, giving NPS a significant long-term cost advantage on large corpuses.

NPS Tier 2 CalculatorFY 2026-27

Plan NPS Tier 2 investments with ultra-low fund management charges (0.01%) and understand the Central Government 80C lock-in benefit.

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Regulatory Disclaimer · FY 2026-27

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

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