How to Calculate the National Pension Scheme Returns?

NPS or National Pension System is introduced to bring in financial stability in the life of investors after retirement. Any Indian citizen whose age is from 18 to 60 years can invest in NPS to gather a corpus till retirement. A part of this corpus is utilised to purchase annuity that will ensure that you get a regular monthly pension after retiring from your services.

As the amount invested in NPS does not grow at a fixed rate of interest like a fixed deposit, calculating the returns is quite a complicated task. Thankfully, many financial institutions have integrated an NPS calculator on their websites. You will also find the NPS calculator on the official website of NPS trust of India. Follow these steps if you don’t know how is NPS calculated online:

  • Step 1: Visit the official website of NPS trust and find the NPS calculator by clicking on the ‘Subscribers’ tab. Now, enter your birth date and the amount you would like to invest in NPS every month.
  • Step 2: A minimum of 40% of the NPS corpus needs to be invested in the annuity. However, you can also select a higher percentage as per your requirements. If you have decided to invest more than 40% of the NPS corpus into the annuity, adjust the percentage in the calculator accordingly.
  • Step 3: Also, select the percentage at which you are expecting your deposits to grow.
  • Step 4: Finally, you also need to select the rate at which you expect the annuity to generate returns. Upon completing these steps, the calculator will automatically show the breakup of the corpus into annuity and lump sum value. Also, the expected monthly pension will also be shown on the screen.

However, the NPS returns are tentative and the actual returns might vary according to the performance of the instruments you pick while investing in NPS. If you are expecting to grow your savings at a fixed rate, you should invest them in fixed deposits. Bajaj Finance FD is offering interest rates of up to 6.80% to individuals below the age of 60. If you are older than 60, your deposits will grow by 0.25% higher FD interest rate. The reasons that make it one of the best investment options are listed below:

Higher returns

Bajaj Finance FD is offering one of the highest FD rates in the market. Also, with options to choose a flexible tenor from 12 to 60 months, you can reach your financial goals without any fuss. The FD rates grow your savings at a constant rate through the tenor. Therefore, you can use the FD calculator to determine the amount and tenor that can provide you the expected returns.


Bajaj Finance FD offers stability to your investment by safeguarding your investments from the market risks. The high credit ratings that this investment has received from CRISIL and ICRA make it a reliable investment option for everyone.

Multi-deposit alternative

With the multi-deposit alternative offered by this FD scheme, investing in multiple FDs at once becomes possible. This allows you to ladder FDs by selecting different tenor, deposit amount, and FD type for your deposits.

Flexibility in terms of withdrawal

The withdrawal process facilitated by Bajaj Finance FD does not include any stringent rules. You may withdraw your deposits anytime once a minimum tenor of 3 months is completed. Moreover, you also get a loan against deposits to avoid premature withdrawals.

Investing in NPS is lucrative as you can safeguard your future through the lump sum amount and monthly pension it provides after retirement. For calculating NPS returns, you may use an NPS calculator. However, the calculated returns might vary from the actual returns as the actual rate of return depends on the performance of the asset classes and instruments that you have invested in. To avoid the uncertainty, you may choose FDs over NPS.

Bajaj Finance FD is offering a high interest rate and option to choose a tenor as per your investment plans. The calculated FD returns are accurate and your deposits remain unaffected by the changing market conditions. You also enjoy a lenient withdrawal process and the option to ladder FDs conveniently by using the multi-deposit feature.

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