NPS Vatsalya: Building Wealth for Your Child

The NPS Vatsalya scheme, launched by Finance Minister Nirmala Sitharaman on 18 September, helps parents save for their children's future from birth to age 18, managed by the PFRDA.

Eligibility and Contributions

Minors up to 18 can join. A minimum initial contribution of ₹1,000 is required, with annual contributions of at least ₹1,000.

How to Open an Account

Accounts can be opened at banks, post offices, or through the eNPS platform, with participation from major banks like ICICI and Axis.

Transition at Age 18

At 18, the account automatically converts to a regular NPS Tier I account.

Expected Returns

Investing ₹10,000 annually for 18 years could yield about ₹5 lakh at a 10% return. If continued until age 60, the amount may grow to ₹2.75 crore, potentially reaching ₹11.05 crore with higher returns. These figures are estimates; actual returns may vary.