NPS Vatsalya: These 7 banks have started opening these accounts, know which documents will be required

The Modi government has started the NPS Vatsalya scheme, under which you can invest for your child's future. This is an extension of the regular National Pension Scheme. This scheme is designed for children. When the child turns 18, the parents can exit the scheme.

On maturity, at least 80 percent of the total amount will have to be reinvested in an annuity plan and you can withdraw only 20 percent of the money. The benefit of the NPS Vatsalya scheme will also be available for the child's higher education, starting a business, or any other major need. Let us tell you that you will have to invest at least Rs 1000 annually.

NPS Vatsalya account can be opened in the name of any citizen up to the age of 18 years. The beneficiary of this account will be only this person. However, this account will be looked after by the child's parents or any other guardian.

NPS Vatsalya account can be opened with big banks, Indian Post, and pension funds. However, this account will be directly regulated by the Pension Fund Regulatory and Development Authority. Those who want to open this account online can go to the eNPS platform of NPS Trust and open the account.

The most important document is the proof of the child's date of birth. For this, you can use birth certificate, school leaving certificate, matriculation certificate, PAN card, or passport. Apart from this, the guardian will also need documents like Aadhaar, driving license, passport, voter ID and PAN card for their KYC.

If you want to open NPS Vatsalya account, then you can go to some selected banks. You can open NPS Vatsalya account by going to ICICI Bank, State Bank of India, Axis Bank, Canara Bank, Central Bank of India, Indian Overseas Bank and Bank of Maharashtra.

If you keep investing even a small amount for your child in NPS Vatsalya, you can create a large corpus by the time he/she turns 18. Let us assume that you invest Rs 1000 every month in NPS Vatsalya scheme for your child under this scheme. Let us also assume that the investment will be made for 18 years and an average return of 10 percent will be received every year. In this way, you will invest a total of Rs 2.16 lakh in 18 years, on which you will get an interest of about Rs 3,89,568. In this way, your total corpus will become Rs 6,05,568.

Let us assume that the child invests Rs 1000 monthly in it from the age of 19 to 60 years. In this way, Rs 7.20 lakh will be invested in NPS Vatsalya in a total period of 60 years. At the same time, you will get an interest of about Rs 3.76 crore on this. In this way, your total corpus will become Rs 3.83 crore.

Let's assume that after the age of 60, your child invests all the money in the NPS Vatsalya account in an annuity plan and takes pension. Even if the interest rate in that plan is only 5-6 percent, your child will still get around Rs 19.15-22.98 lakh annually just as interest. That means he will start getting Rs 1.59-1.91 lakh every month as pension.