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Invest ₹1,000 monthly and get up to ₹13 crore: Know about NPS Vatsalya scheme
- •The Central Government's NPS Vatsalya scheme is designed to ensure the long-term financial security of children under the age of 18.
- •Parents can start investing with a minimum initial amount of ₹1,000 per month from the child's birth and benefit from compound interest.
- •Investing ₹1,000 monthly for 60 years can yield a massive corpus ranging from ₹3.7 crore to ₹13 crore based on historical returns.
- •Partial withdrawals of up to 25 percent are permitted after 3 years for the child's higher education and medical emergencies.
- •Once the child turns 18, the account undergoes KYC verification and can be directly converted into a regular adult National Pension System account.
Key Questions Answered
The NPS Vatsalya scheme is a Central Government initiative aimed at ensuring the long-term financial security and savings of children. Accounts can be opened in the name of any minor under the age of 18 by their parents or legal guardians right from the child's birth.
Investing ₹1,000 monthly for 60 years can yield between ₹3.7 crore and ₹13 crore due to compound interest. Alternatively, saving for 30 years accumulates over ₹62 lakh, allowing a 60 percent lump-sum withdrawal and a monthly pension exceeding ₹12,000 from the rest.
After three years, up to 25 percent of the parents' contributed principal can be withdrawn twice before age 18 and twice between 18 and 21 for education and medical needs. When the child turns 18, KYC is completed and the account transitions into a regular adult NPS account.
