NPS Vatsalya Scheme
The NPS Vatsalya Scheme, launched in September 2024, enables parents or guardians to invest in a pension plan for children under 18 years of age. Managed by the Pension Fund Regulatory and Development Authority (PFRDA), it offers an attractive interest rate of 9.5%-10%. The account requires a minimum annual contribution of ₹1,000, with no upper limit. Withdrawals for emergencies like education or medical treatment are allowed. At maturity (age 18), 80% of the corpus must be used for annuities, with the remainder available as a lump sum. The scheme promotes long-term financial planning and savings for children.
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