Axis Bank and ICICI Bank have introduced a new scheme, NPS Vatsalya, aimed at securing the financial future of minors. This initiative, part of the 2024 Union Budget, allows parents and guardians to start investing in their child’s future with long-term benefits. Here’s what you need to know:
- What is NPS Vatsalya?
NPS Vatsalya enables parents or guardians to open a National Pension System (NPS) account for minors under 18. It provides a structured way to build a retirement corpus for your child, encouraging disciplined saving. - Key Features:
- Eligibility: Available for minors with PAN and Aadhar cards.
- Minimum Contribution: ₹1,000 annually, with no upper limit on contributions.
- Investment Options: Choose from default, auto choice (ranging from aggressive to conservative), or active choice (up to 75% in equity).
- How to Open an Account:
- Visit any Axis Bank or ICICI Bank branch with the child’s birth certificate, PAN, and Aadhar cards. Other banks are expected to join soon.
- Benefits:
- Start building a pension fund for your child from an early age.
- Upon turning 18, the account can be converted to a regular NPS Tier-I account.
- A solid foundation for long-term financial security with compounding benefits.
This is a promising way to ensure financial responsibility and growth for your child’s future.