NPS Vatsalya Scheme This is a new initiative of the government, which has been launched with the aim of securing the financial future of children. Let us understand this scheme in detail:
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What is NPS Vatsalya Scheme?
the scheme National Pension Scheme (NPS) This is a version of NPS, which is specially designed for children. Under this scheme, parents or guardians can open NPS account in the name of their minor children and invest regularly till they turn 18 years old.
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Account Features:
- Eligibility to open an account: Now NPS account can also be opened for children below 18 years of age.
- input range: Parents can invest from Rs 500 per month to Rs 1.50 lakh per year.
- Operation of the account: The parents or guardians will operate the account until the child reaches the age of 18, after which the account will be transferred to the name of the adult.
- Return: According to experts, if Rs 5,000 is invested per month, a fund of about Rs 30.27 lakh can be accumulated in 18 years. If the account is continued till the age of 60, this amount can be up to Rs 20.50 crore.
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Account Options:
- Changes in the normal NPS: After 18 years, the account can be converted into a normal NPS account and continued till the age of 75 years.
- Use of Funds: At the age of 18, the child can withdraw the entire amount from his/her account or continue to receive it as pension till the age of 60.
- Portability: This account will continue even if you change jobs and there will be no change in it.
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Benefits of the scheme:
- Long Term Investment: Through this plan parents can provide long term financial security for their children.
- tax benefit: At the time of retirement a part of the fund can be withdrawn without tax.
- Creation of large amount: By investing for a long time, a large amount of money can be accumulated, which will prove beneficial for the child in future.
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How to open an account:
The process of opening an NPS account is simple. eNPS This account can be opened online by visiting the website of , or this account can be opened by visiting any government or private bank.
NPS Vatsalya Scheme It is a great way to secure the financial future of children. This scheme will not only provide stable financial security to children in the long term but will also help them become self-reliant.
