The NPS Vatsalya Scheme is a government scheme, just like the National Pension Scheme. The primary goal of its launch was to encourage long-term savings for young children, or minors. Indians, as well as NRIs, can take advantage of this scheme.
The NPS Vatsalya Scheme connected 9705 children on its inaugural day, Thursday. Finance Minister Nirmala Sitharaman launched the scheme on Wednesday. The Union Budget 2024-25 announced it.
The Pension Fund Regulatory and Development Authority (PFRDA) oversees this scheme. This scheme provides an opportunity for parents to make arrangements for retirement for their children from the very beginning, taking advantage of the benefits of compounding.
The opening itself was attended by 10 thousand people.
According to PFRDA, there is tremendous interest among the people about the NPS Vatsalya Scheme. On its very first day, 9705 customers joined this scheme through the POP and e-NPS portals. The e-NPS portal alone facilitated the opening of 2197 accounts.
Finance Minister Nirmala Sitharaman had announced the launch of the NPS Vatsalya Yojana while presenting the full budget for the financial year 2024-25. In this scheme, parents can make a minimum investment of Rs 1,000 annually in the NPS account in the name of the child.
Lakhs of interest will be available each year.
Investing one thousand rupees annually will yield a 10 percent return. This method allows for a deposit of Rs 2.16 lakh over a period of 18 years. We will receive interest of Rs 3.89 lakh on this amount. That is, when the child turns 18, the total deposit amount will be Rs 6.05 lakh.
Now you have two options: either you continue your scheme by letting it remain deposited or withdraw some part as per the rules. If you deposit this money, your account will receive a deposit of Rs 3.83 crore by the time your child turns 60. Now you can buy an annuity with this amount. You will get 5 to 6 percent interest on this too; in this way, you will get about Rs 20 lakh annual interest.
