New Delhi: If you are looking for a scheme to make investment in the name of your child, then a new scheme was announced in the Budget 2024. Finance Minister Nirmala Sithraman announced a new scheme called ‘NPS Vatshalya’ for minors. Parents/Legal guardian can open NPS Vatshalya account for their children below 18 years old. Once the minor becomes adult (18 years of age and above), it will be converted into a Regular National Pension System account.
What is NPS account?
NPS is a retirement savings scheme where your savings are linked to the market. It’s designed to help you save for retirement. You can choose to join it if you want, and it lets you move between jobs without losing your savings. NPS is flexible, making it easy for you to manage. It’s also a great way to increase your retirement money and save on taxes. It is a government-backed investment scheme. Its structured approach allows employees to secure their financial future with a combination of withdrawal benefits and pension payments.
The National Pension System helps you plan for retirement in a disciplined way. It offers good returns by using compound interest. You can withdraw money early if needed, and it ensures you have a steady income after you retire by requiring you to buy annuities.
Parents or legal guardians can open an NPS Vatshalya account for children under 18 years old. When the child turns 18, the account will become a regular National Pension System account. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
