National Pension System or NPS is an excellent tax-saving, investment-cum-saving account for retirement. It yields higher than a Bank Savings account as returns are linked to professionally managed pension funds. Indian Nationals including NRIs between 18-70 years can subscribe to NPS & avail of tax deductions on income up to Rs 2 Lakh. The basic NPS account is called Tier I a/c and Tier II is a voluntary account.