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All you need to know before opening National Pension System Tier 2 Account
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On opening a National Pension System (NPS) account, the Tier I account gets opened mandatorily. The amount you put into NPS goes into this Tier 1 account as per the allocation decided by you among the various fund options. You can diversify across equity and debt fund options in NPS and the NPS returns will depend on the performance of these fund options.
In addition, there is an option for the NPS subscriber to open a Tier II account within the same account. The difference between NPS Tier 1 and
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