As a parent, you might want the best for your child and if you are the one who wants to support your love ones’ future financially there is a mind-blowing scheme in the market that is the NPS Vatsalya Yojna which is a specialised scheme under the infamous National Pension System (NPS).
The parent or the legal guardian of the child needs to open an account on behalf of their child and needs to contribute to it until the child reaches the age of 18. After the child turns 18, the account will automatically convert into an NPS account.
NPS Vatsalya Yojana scheme:
An early start: This is the best feature of the NPS Vatsalya Yojna. Starting to save early for your child’s retirement will benefit the most.
Long-term Investment: The long-term nature of this yojana allows you to take full advantage of compounding.
Eligibility: The child must be under 18 years of age.
Who Can Avail NPS Vatsalya?
The Indian citizens, Non-resident Indians (NRIs), and Overseas citizens of India(OCI), can enjoy this scheme.
How to open NPS Vatsalya for children
1. Choose a pension fund manager (PFM): You need to select one from the authorised PFMs
2. Required Documents: The documents you need to keep ready are your child’s birth certificate, your identity proof, and address proof.
3. Fill out the application: Fill in all the accurate information in the NPS Vatsalya application form.
4. Deposit the minimum amount: At last, you need to make the minimum required deposit to activate the account. Once you complete all the process, your NPS Vatsalya account comes to life.
NPS Vatsalya benefits
Secured Retirement: The Vatsalya yojana lets your child instil a habit of saving from an early age which ultimately builds strong funds for your child.
Tax savings: Enjoy all the tax benefits under Section 80 C of the Income Tax Act.
To conclude, the NPS Vatsalya is a really thoughtful scheme that let you secure your child’s retirement. The scheme ensures that your child has a solid financial future by promoting early savings.
NPS-Vatsalya is a plan for contribution by parents and guardians for minors. The new scheme was announced by Finance Minister Nirmala Sitharaman in Budget 2024-25. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
