The central government’s new scheme – NPS Vatsalya – is aimed at promoting long-term financial planning and security for all the citizens. NPS Vatsalya provides cover to older and young members of the family. Sukanya Samriddhi Yojana is a very popular government financial scheme aimed at strengthening the economic status of girl children in India.
The government has said that the newly launched NPS Vatsalya scheme will ‘inculcate the habit of savings among young subscribers and large wealth can be accumulated through power of compounding’.
Prime Minister Narendra Modi launched Sukanya Samriddhi Yojana in January 2015 under the ‘Beti Bachao, Beti Padhao’ campaign. Sukanya Samriddhi Account Scheme can be opened in any post office for a minimum of Rs 250 for girls up to the age of 10 years. Union Finance Minister Nirmala Sitharaman launched NPS Vatsalya in New Delhi on September 18, 2024. It may be noted that NPS Vatsalya is designed specifically for all Indian minor citizens till the age of 18 years, irrespective of gender.
NPS-Vatsalya calculator
SBI Pension Funds gives an estimation of what would be the corpus if Rs 10000 per year is deposited in a particular amount. If a guardian invests Rs 10000 per year in a single account for
in 18 years, the corpus will be Rs 5 lakh if calculated with 10 per cent RoR. If one continues to invest for 60 years, then the accumulated corpus is expected to be 2.75 crore on
An estimated returns of 10%, 5.97 crore if the RoR is 11.59%* and 12.56 crore on RoR of 12.86%.
The above-mentioned figures are for illustration purposes only as the calculations are based on historical data and estimates. It may be noted that the actual returns may vary.
NPS Vatsalya Withdrawal
Before turning 18, partial withdrawals are permissible after 3 years of joining NPS. One can withdraw up to 25 per cent of the contributed amount. Withdrawals can be done 3 times till subscriber turns 18. Partial withdrawals would be permissible for the purposes of education, specified illnesses, disability of more than 75%, etc.. The guidelines will be as per PFRDA.
After the NPS Vatsalya account holder turns 18, the account will be seamlessly shift to NPS Tier – I (All Citizen). Fresh KYC of the minor will have to be done within three months from date of attaining 18 years. After the transition process is completed, the features, benefits, and exit norms of the NPS-Tier I for All Citizen Model will apply.
Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana, the investment is capped at Rs 1.5 lakh a year and the account can be opened in the name of a girl child till she attains the age of 10 years. Withdrawal is allowed for the purpose of higher education of the SSY account holder.
The account can be prematurely closed if the girl gets married after her attaining the age of 18 years. The account can be transferred anywhere in India from one Post office/Bank to another. The Sukanya Samriddhi account will mature on completion of a period of 21 years from the date of opening of account.
At present the interest rate is 8.2 percent and deposit amount qualifies for deduction under Sec.80-C of I.T Act. Interest earned in the account is free from Income Tax under Section -10 of IT Act.
If Rs 1.5 lakh is deposited in SSY account once in a year, the beneficiary will get a maturity amount of Rs 71,82,119, out of which Rs 49,32,119 will be the interest. The estimates are based on the current interest rates.
In this article we inform you about the returns, withdrawal and other aspects of NPS Vatsalya and Sukanya Samriddhi Yojana. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
