NPS Vatsalya vs. PPF: A Path to a Million-Rupee Fund for Your Child

NPS Vatsalya vs. PPF: The Finance Minister has recently launched the NPS Vatsalya Yojana for children. This scheme is specially designed to secure the future of children. In this scheme, parents will invest in children which will be useful for the children later. If you are worried about the future of your children and are looking for a safe investment option for them, then NPS Vatsalya Yojana can be a great option.

Foundation of bright future of children

Under this scheme, an NPS account can be opened for children below 18 years of age. To open an account, a minimum investment of ₹ 1000 has to be made. There is no maximum investment limit in this scheme, which makes it flexible and convenient.

Partial withdrawal and maturity

In this scheme, partial withdrawal can be made after 3 years of investment. Partial withdrawal can be made only for education or treatment. If the scheme matures, it can be extended further. Let us tell you that this scheme matures after 18 years, which encourages long-term investment.

Rules for having more than ₹ 2.5 lakh

If there is less than ₹ 2.5 lakh in the fund of NPS Vatsalya Yojana, then a full withdrawal can be done. But, if you have more than ₹ 2.5 lakh, then you can withdraw only 20%.

You can buy an annuity with the remaining 80% amount. Your child will start getting pension benefits after 60 years from the annuity amount, which will be a secure source of income for retirement.

Which scheme is better

Many investors are quite confused about NPS Vatsalya and the Post Office PPF scheme. Which of these two schemes will give better returns? By investing in which scheme, a fund of crores of rupees will be ready in a short time? Many such questions are coming to mind. We will tell you which of these two schemes will create a fund of crores of rupees in a short time.

Which scheme will make you a millionaire soon

If you deposit ₹10,000 annually in NPS Vatsalya, then after investing continuously for 18 years, you have invested a total of ₹1,80,000. You will get an annual return of about 10 percent on this investment. If you do not make any withdrawal from the fund for 60 years, a total fund of ₹2.75 crores will be created. This is a great example of long-term investment.

On the other hand, if you invest ₹1.5 lakh annually in PPF, then after investing continuously for 25 years, your total fund will be ₹1,03,08,015. Let us tell you that currently 7.1 percent interest is being given in the PPF scheme.