If you want to create a big fund with a small amount for the secure future of your children, then the government’s ‘NPS Vatsalya’ scheme can prove to be a better option for you. The biggest feature of this government scheme is that if you invest in it for a long time, you get the benefit of compounding. If you deposit ₹10,000 every year in your child’s name, a corpus of up to ₹11 crore can be created by the child’s retirement age. The money deposited in this scheme is invested by experts in government securities, corporate debt and equity. Know here the benefits of the scheme, method of investment and mathematics of returns… What is NPS Vatsalya Scheme? This is a new scheme of the government National Pension System (NPS), which was launched in September 2024. Parents can invest in the scheme in the name of their child below 18 years of age. In this, it is necessary to deposit at least ₹ 250 annually, there is no maximum limit. This account will be converted into regular NPS pension account as soon as the child turns 18 years of age. In the scheme, parents can choose the investment options for their children as per their choice. They themselves decide how much money to invest in equity, debt or government bonds. How can a fund of ₹11 crore be created? If you deposit ₹ 10,000 every year (i.e. only ₹ 834 per month) in the name of your child, then you can accumulate this much fund by continuing to invest in regular NPS till the retirement age (60 years). Three options are available to invest in the scheme. Eligibility for investing in NPS Vatsalya Scheme: Withdrawal up to 25% after 3 years. Withdrawal can be availed after 3 years from account opening. Up to 25% of the subscriber’s own contribution (except returns) can be withdrawn. This is for education, medical treatment or notified disabilities. Withdrawal is allowed twice before 18 years and twice between 18-21 years. With conditions. How to open NPS Vatsalya account at the age of 18 years? NPS Vatsalya account can be opened by visiting banks. Account can be opened online at https://nps.kfintech.com/ or other eNPS platforms sitting at home.
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You will get ₹ 11 crore on annual investment of ₹ 10,000 in the names of children: Complete mathematics of making funds in NPS Vatsalya Scheme; Know eligibility and investment method
