Invest ₹10,000 annually for child get ₹11 crore:Find out here how NPS Vatsalya magic works

If you want to create a large fund from a small amount for your children’s secure future, the government’s ‘NPS Vatsalya’ scheme could prove to be a better option for you. The biggest feature of this government scheme is that it provides the benefit of compounding when investing for a long time. If you deposit ₹10,000 every year in your child’s name, a large fund of up to ₹11 crore can be created by the child’s retirement age. The money deposited in this scheme is invested by experts in government securities, corporate debt, and stock market (equity). Here, learn about the benefits of the scheme, investment method, and return calculations… What is NPS Vatsalya Scheme? This is a new scheme of the government’s National Pension System (NPS), which was launched in September 2024. In this scheme, parents can invest in the name of their child who is under 18 years of age. A minimum annual deposit of ₹250 is required, with no maximum limit. When the child turns 18, this account will convert into a regular NPS pension account. In this scheme, parents can choose investment options for their children as per their preference. They can decide how much money to invest in equity, debt, or government bonds. How can you build a fund of ₹11 crore? If you deposit ₹10,000 annually (just ₹834 per month) in the child’s name and continue investing in regular NPS until retirement age (60 years), you can accumulate this much fund…. Three investment options are available in the scheme Eligibility for investing in NPS Vatsalya Scheme Up to 25% withdrawal after 3 years Withdrawal is possible after 3 years from account opening. Up to 25% can be withdrawn from subscriber’s own contribution (excluding returns). This is for education, medical treatment or notified disabilities. Withdrawal permission is allowed 2 times before 18 years, 2 times between 18-21 years, with conditions. Withdrawal at age 18 How to open NPS Vatsalya Account? NPS Vatsalya account can be opened by visiting banks. You can open an account online from home at https://nps.kfintech.com/ or other eNPS platforms.