Every parent in the world dreams of giving their children a secure and prosperous future, from quality education to a stable career, parents work hard and save heavily to ensure that their children never have to face financial difficulties. For this, the government has started a new scheme, which will solve this problem of yours, that is NPS Vatsalya Yojana, it is part of the comprehensive National Pension System (NPS) framework and is specially designed to help parents or guardians open pension accounts in the name of their children, let's know the full details about it-

What is it?

A special NPS-linked scheme launched by the Government of India for children.

It enables parents to start saving for their child's pension from an early age.

Who can open an account?

The child's parents or guardians can open an NPS Vatsalya account on their behalf.

Up to what age can parents invest?

The investment is made till the child turns 18 years old.

After the child turns 18, the account becomes a full-fledged NPS account in the name of the child.

After that, the child can manage and invest in the account on his/her own.

Investment amount:

The investment structure is similar to standard NPS accounts:

Tier I account: Minimum ₹500

Tier II account: Minimum ₹1,000

No upper limit has been fixed.

Currently, no separate investment slabs or rules have been notified for the Vatsalya scheme.

Potential growth example:

If parents invest ₹10,000 every month till the child turns 18, a corpus of around ₹63 lakh can be created by that time.

Why it is beneficial:

A long-term wealth creation tool with tax benefits under Section 80C and 80CCD.

Financial independence for your child after retirement.

Offers market-linked returns, which are usually better than traditional savings schemes.