With the NPS Vatsalya scheme, introduced by Finance Minister Nirmala Sitharaman, parents now have a powerful tool to build a solid financial future for their children. By contributing just ₹10,000 per year, your child could amass a retirement corpus exceeding ₹10 crore! Let’s break it down 👇
🎯 What is NPS Vatsalya?
NPS Vatsalya is a pension-cum-savings scheme tailored for minors, encouraging long-term financial planning. The scheme utilizes the power of compounding, allowing parents to contribute towards their child’s future with flexible annual amounts starting from ₹1,000. This makes it accessible for families from diverse financial backgrounds.
📊 How Much Can Your Child Save?
By contributing ₹10,000 per year to an NPS Vatsalya account until your child turns 18, here’s the potential corpus they can build:
- At Age 18: ₹5 lakh (assuming a 10% rate of return)
- At Age 60:
- @10% RoR: ₹2.75 crore
- @11.59% RoR: ₹5.97 crore
- @12.86% RoR: ₹11.05 crore 🌟
This shows how powerful compounding is when started early!
🏦 How to Invest in NPS Vatsalya
Parents can easily open an NPS Vatsalya account through several banks and digital platforms. Here’s how:
- ICICI Bank, Axis Bank, PNB, Central Bank of India: Visit any branch or register through their online portals.
- eNPS Platform: Use platforms like Protean, KFintech, or CAMS NPS to open and manage accounts digitally, making it convenient to contribute from home. 🏠💻
Plan today for a brighter tomorrow.
— Punjab National Bank (@pnbindia) September 18, 2024
To apply online and for more info, visit: https://t.co/WpDI1x5NLJ@PFRDAOfficial#NPS #NPSZaruriHai #NPSPensionForAll #NPSVatsalya #PensionkiGullak #GiftofCare #Banking #PNB pic.twitter.com/5KG8oHeKtN
✅ Key Features of NPS Vatsalya
- Eligibility: Any minor (below 18 years) with a PAN card and Aadhaar.
- Contribution: Start with a minimum of ₹1,000 per year, with no cap on maximum contributions.
- Transition to NPS Tier-I: Once the child turns 18, the account shifts seamlessly into an NPS Tier-I account with full KYC.
- Withdrawals: After 18, up to 25% withdrawal allowed for education or medical needs. Remaining corpus is used for retirement.
- Death Benefit: Entire corpus returned to the guardian in case of unfortunate death.
🌟 Why Choose NPS Vatsalya?
The scheme is perfect for parents wanting to secure their child’s financial future with minimal contributions. The tax benefits, combined with the flexibility of withdrawal and transition to an adult account, make it a practical choice for long-term wealth accumulation. 💸🌱
Start today and let compounding magic work for your child’s retirement! 🎯