Parents work hard in many ways for the golden future of their children. Many precautions are taken so that they do not face any problems in the future. As part of this, money is saved in many types of savings schemes.
The government has brought a new scheme for them.
The scheme introduced for children is called NPS Vatsalya. In this scheme, if you pay some money in the name of the child, it will become a regular pension account after he turns 18. Now let’s know the complete details about this NPS Compassionate Scheme introduced by the Centre.
Parents of children below the age of 18 are eligible for this scheme. Parents can avail many benefits if they invest in this scheme till their children turn 18. This scheme will be regulated by PFRDA like regular NPS accounts.
Banks, post offices, pension fund offices and e-NPS portals can apply for this scheme. This scheme requires KYC of the parents. Identity documents related to the children must also be provided. In this scheme, parents have to invest a minimum of Rs 1,000 per year in the name of their children. There is no maximum limit. You can invest anyway. It will become a regular NPS account after the children turn 18.
How to apply online?
Parents can now secure their children’s financial future by opening an NPS Vatsalya account, a central government pension scheme. NPS Vatsalya Yojana is one of the best retirement options and ensures financial security for the child.
Read on to know more about NPS Vatsalya Yojana and its eligibility, benefits, initial process and much more.
NPS Vatsalya Yojana Interest Rate
The interest rate of NPS Vatsalya Yojana ranges from 9.5% to 10%.
Who is eligible for NPS welfare?
- Indian citizens below 18 years of age
- Non-Resident Indians (NRIs) below 18 years of age and Overseas Citizens of India (OCI)
- The parent or guardian of the child can open and operate the account on behalf of the minor.
- The parent or guardian is the nominee under this scheme and the child is the sole beneficiary.
To create a fund of Rs 11 crore under this scheme, you have to invest Rs 10,000 per year, in which about Rs 834 is deposited every month. This amount can be invested till the age of 18 years. After this, the account will be converted into a regular NPS account and this amount will continue to increase till the age of 60 years.
If you invest Rs 10 thousand every year in the name of the child, the total investment in 18 years will be Rs 1.80 lakh. If you earn 10 percent profit every year on this investment, this money will become about 5 lakh rupees in 18 years.
The process to open an NPS Vatsalya Yojana account online is as follows:
Step 1: Visit the eNPS website.
- Step 2: Scroll down and click on the ‘Register Now’ option under the ‘NPS Vatsalya (Minors)’ tab.
- Step 3: Enter the parents’ date of birth, PAN number, mobile number and email and click ‘Start Registration’.
Step 4: Enter the parents’ mobile number and the OTP received on the email.
Step 5: After verifying the OTP, an acknowledgement number will be generated on the screen. Click ‘Continue’.
Step 6: Enter the minor and parent details, upload the required documents and click ‘Confirm’.
Step 7: Make an initial contribution of Rs. 1,000.
Step 8: Complete the dual OTP or eSign authentication.
Step 9: A PRAN will be generated and an NPS Vatsalya account will be opened in the name of the minor.