Parents can invest in NPS Vatsalya to save for their children’s future through a pension account and take advantage of compounding rates in the long term. One can deposit a minimum of Rs 1000 annually in NPS Vatsalya Yojana.
NPS Vatasalya Calculation: Finance Minister Nirmala Sitharaman had announced a new scheme during the budget of July 2024. This scheme was introduced for children’s pension, which comes under NPS. This is NPS Vatsalya Yojana, which was implemented on 18 September. Under the NPS Vatasalya scheme, any minor below 18 years of age can invest in it.
What is NPS Vatsalya Yojana?
Parents can invest in NPS Vatsalya to save for the future of their children through pension account and take advantage of compounding rates in the long term. One can deposit at least Rs 1000 annually in NPS Vatsalya Yojana and there is no maximum limit.
Features of NPS Vatsalaya
Any minor below 18 years of age, who has PAN and Aadhar card, can open this account.
Under this scheme, you can invest a minimum of Rs 1000. There is no maximum limit.
Any parent can invest in this scheme in the name of their child.
When the child turns 18, this account will be transferred to the standard NPS account.
After completion of the lock-in period of 3 years, you can withdraw up to 25% of the amount 3 times.
On an amount above Rs 2.5 lakh, you can buy annuity with 80% of the amount and withdraw 20% of the amount in lump sum.
You can withdraw the entire amount up to Rs 2.5 lakh.
On death, the entire amount will be transferred to the name of the guardian.
10 thousand will deposit 11 crore rupees
According to PIB in Chandigarh, under NPS Vatsalya Yojana, if you deposit 10 thousand rupees annually, then this amount will have to be deposited for 18 years. After 18 years, your total investment will be 5 lakh rupees. A return of 10 percent has been added to this on a year-on-year basis.
If you keep this amount for 60 years and add 10% annual return, then the total corpus will be Rs 2.75 crore.
Based on 11.59% annual return, by the age of 60, this corpus will be Rs 5.97 crore.
Similarly, based on 12.86% annual return, the total corpus at the age of 60 will be Rs 11.05 crore.
📊 Your Pension Potential with #NPSVATSALYA
• Annual Contribution: ₹10,000
• Investment Duration: 18 years
• Expected Corpus at 18: ₹5 lakh @10% RoRExpected Corpus at 60:@10% RoR: ₹2.75 Cr@11.59%* RoR: ₹5.97 Cr@12.86%# RoR: ₹11.05 Cr
Start your investment today! pic.twitter.com/S7pt00MuT2
— PIB in Chandigarh (@PIBChandigarh) September 18, 2024
What documents are required?
Talking about the documents required to open NPS Vatsalya account, there should be proof of date of birth of the minor (birth certificate, school leaving certificate / matriculation certificate, PAN and passport). Apart from this, the guardian should have KYC identity and address proof (Aadhaar, driving license, passport, voter ID card, NREGA job card and National Population Register). If NRI, then the minor should have an NRE/NRO bank account.
