Should you invest in NPS Vatsalya: How your child can earn Rs 11 crore when he retires by investing in NPS Vatsalya

· Partial withdrawals before subscriber turns 18

· After 3 years of joining NPS

· Up to 25% of contributed amount

· Available 3 times till subscriber turns 18

.Partial withdrawals can be made for the purposes of education, treatment of specified illnesses, disability of more than 75%, etc., as specified by PFRDA.

ET Online

· Subscriber can continue this NP Account beyond the age of 18 years

· Account converted into a regular All Citizen NPS Account

· Fresh KYC of minor within 3 months of turning 18

· Subscriber can exit NPS

· At least 80% of accumulated corpus is re-invested into an annuity plan and the remaining 20% can be withdrawn as a lump sum

· If accumulated corpus = Rs 2.5 lakh, entire amount can be taken as lump sum

ET Online

· Death of subscriber: Entire corpus returned to guardian (guardian is the nominee)

· Death of guardian: Another guardian to be registered through fresh KYC

· Death of both parents: Legal guardian can continue without making contributions until subscribers attains 18 years of age

ET Online

· Active Choice

· Auto Choice LC-75 (Aggressive)

· Auto Choice LC-50 (Moderate)

· Auto Choice LC-75 (Conservative)

ET Online

Amount and Tenure of Investment: Contribution: Rs 10,000 per year
Duration: 18 yrs.

RoR 10%- 5 lakh

ET Online

Amount and Tenure of Investment: Contribution: Rs 10,000 per year
Duration: 18 yrs.

RoR 10%–2.75 crore

RoR 11.59%*- 5.97 crore

(*-The historical average return since inception under NPS with default weights (50% equity, 30% Corp Debt and 20% G-Sec) is 11.59% as on 19 th Jul 2024.)

RoR 12.86%#- 11.05 cr (# The historical average return since inception under NPS with 75% weight to equity and 25% weight to G-Sec is 12.86% as on 19 th Jul 2024.)

Disclaimer – This is for illustration purposes only
Calculations are based on historical data and estimates, and the actual returns may vary.

This information is sourced from SBI Pension Funds website as on September 23, 2024.

ET Online

Click Open NPS Account and select your preferred Central Recordkeeping Agency (CRA).

Step 1: Fill out the registration form online and upload documents.

Step 2: Make initial payment of Rs1000/- or more and get NPS Account activated.

Step 3: This will generate PRAN (Permanent Retirement Account Number) which is unique, i.e., an individual can have only one PRAN number.
Step 4: After a day, the subscriber gets a Login ID to his account held by the CRA. Using this login ID, subscriber can view all details and history of his/her account.
It takes about 10- 15 mins to open your online NPS account.

ET Online

· Mobile-linked Aadhaar Card or DigiLocker of minor and guardian

· Date of Birth proof of minor (e.g., birth certificate, school leaving certificate,matriculation certificate, PAN, passport)

· Bank account details of minor not mandatory for opening account, but will be required at the time of partial withdrawal or exit before the age of 18 (account number, IFS Code, and bank name; ensure that the bank account is in name of the individual registering for NPS)

o In the case that the guardian is NRI or OCI, NRE/NRO Bank details of guardian are mandatory

· Scanned copy of cancelled cheque or bank passbook

· Scanned copies of your PAN Card and signature

· Ensure your UPI or Internet Banking is active (for payment purposes)

ET Online