2024-09-21 03:33:24
New Delhi: The central government has started a scheme named NPS Vatsalya for children. Under this scheme, even children below 18 years of age can open an account in the National Pension Scheme (NPS). By investing in this scheme, when the children grow up, there will be a large fund in their name. In such a situation, this is an investment scheme for the better future of children. Under this, parents have to invest at least Rs 1000 in a year in the name of the child. There is no limit on the maximum amount deposited. The money deposited in it can be withdrawn after the child turns 18 years old.NFO is also not less to make money, opportunity to invest in new scheme of mutual fund
What is NPS Vatsalya?
This is a retirement plan. Till now this scheme was for people above 18 years of age. But now it has been started for children below 18 years of age as well. Its name is NPS Vatsalya Scheme. All the benefits that adults get will be available in it. In this scheme, the parents of the children will invest in the name of the child. In this scheme, the child’s account will have to be run for at least three years. After this and before the child reaches the age of 18, 25 percent of the amount can be withdrawn for education or treatment. After the age of 18, 20 percent of the deposited amount can be withdrawn. Annuity will have to be purchased for the remaining amount. That is, the child will get pension every month from this.
What is PPF scheme?
PPF or Public Provident Fund is also an investment scheme. Most people prefer to invest in this scheme for their children. However, adults can also invest in it in their own name. A fixed interest is received in this. This is a long term investment scheme. One has to invest in it for at least 15 years. But later it can also be extended for 5-5 years. Under this scheme, an account can be opened in any bank or post office.
What is the difference between PPF and NPS Vatsalya?
- Currently, PPF is giving 7.1% interest per annum. It gives guaranteed fixed returns. The government assesses the interest amount every three months. Whereas, the annual interest rate in NPS is around 10%. It has equity-linked returns. It does not give fixed returns.
- You can start investing in PPF from Rs 500. The starting amount of investment in NPS Vatsalya is Rs 1,000 per year.
- PPF is an investment scheme, while NPS Vatsalya is a pension scheme. No pension is available after maturity in PPF. In NPS Vatsalya, you can withdraw 20% of the amount on maturity. You will have to buy annuity for the remaining 80%. This will provide pension.
- PPF is a 15-year scheme. However, later it can be extended twice for 5 years each. On the other hand, there is nothing fixed in NPS Vatsalya. Even after the child turns 18, this scheme can be continued till he reaches the age of 60.
How much money will be received in NPS Vatsalya?
If your child is less than three years old and you invest Rs 1,000 every month till the child is 18 years old, then in 15 years this amount will be Rs 1.80 lakh. If we assume 10% annual interest on this, then the interest amount will be around Rs 2.38 lakh. In such a situation, the total investment in 15 years will be around Rs 4.20 lakh. Out of this, only 20% i.e. Rs 84,000 will be received. Annuity will have to be taken for the remaining amount. About 6% annual interest will be received on this. Pension will start coming every month from this amount. At the same time, with a return of 7.1% in PPF, this total amount will be Rs 3.22 lakh in 15 years. In such a situation, a big amount will be received in PPF in the beginning itself. If you invest more money in both the schemes, then the total investment will be more.