NPS Vatsalya vs. PPF: Secure Your Child’s Future with High Returns & Pension

NPS Vatsalya vs. PPF: The Finance Minister has recently launched the NPS Vatsalya Yojana for children. This scheme has been launched specifically for children. In this scheme, parents will invest in children which will be useful for the children later. If you want to secure the future of your children, then this scheme can be a great option for you. Know between this scheme and PPF, in which you will become a millionaire soon, and which scheme is better for your child.

NPS Vatsalya Yojana

Under this scheme, an NPS account can be opened for children below 18 years of age. To open an account, at least ₹ 1000 has to be invested. Partial withdrawal can be made after 3 years of investment in this scheme. Partial withdrawal can be made only for education or treatment. If the scheme matures, it can be extended. Let us tell you that this scheme matures after 18 years.

If the fund of NPS Vatsalya Yojana has less than ₹ 2.5 lakh, then the entire withdrawal can be done. But, if the amount is more than ₹ 2.5 lakh, then you can withdraw only 20%. With the remaining 80%, you can buy an annuity. Your child will start getting pension benefits after 60 years from the annuity amount. This scheme provides long-term financial security to children.

Which will give better returns and will become a millionaire soon

Many investors are quite confused about NPS Vatsalya and the Post Office’s 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 in which of these two schemes, a fund of crores of rupees will be ready in a short time. This comparison will help you make the right investment decision.

Which scheme will make you a millionaire quickly

If you deposit ₹10,000 annually in NPS Vatsalya, then after investing continuously for 18 years, you have invested a total of ₹1.80 lakh. 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 crore will be ready.

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. This analysis shows that NPS Vatsalya has the potential for higher returns in the long term.