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What is the difference between a tier 1 and tier 2 NPS account?

Unlike a PPF where you have only one plan, NPS offers various choices starting from two account types.

Tier 1 account, the pension account, which gives tax benefit and is mandatory to open for NPS, and
Tier 2 account, an optional account with withdrawal flexibility.

The table below explains the two types of accounts in detail:

PARTICULARS	TIER 1	TIER 2
Minimum Contribution required at the time of account opening	₹500	₹1000
Minimum Subsequent Contribution amount required	₹500	₹250
Minimum contribution required per year	₹1000	NIL
Minimum number of contributions required in a year	1	NIL