Smart Investment | NPS Vatsalya or Sukanya Samriddhi, which scheme will give you more benefits? Know in detail
Smart Investment | Union Finance Minister Nirmala Sitharaman recently launched the NPS Vatsalya Yojana. This has added another option to the list of investment options available in the name of children. Sukanya Samriddhi Yojana, as well as Public Provident Fund schemes are also available for investment in the name of minors. Another option has been added to the government schemes to invest in the name of children. Let's take a comparative look at these schemes. Let's take a comparative look at these schemes, so that it will be easier to decide which scheme to choose.
What is NPS Vatsalya Plan?
NPS Vatsalya Yojana has been launched recently and investments can be made in the name of children up to 18 years of age. It is necessary to pay a minimum of Rs 1,000 to open an account in this scheme. Also, a minimum of Rs 1,000 has to be deposited in this account every financial year. There is no limit on how much money can be deposited annually in this account. The scheme has a lock-in period of three years, during which the money cannot be withdrawn. After that, up to 25 percent can be withdrawn for reasons of education or illness. The minor in whose name the account is located can withdraw a part of the money collected till the minor turns 18 or use it to buy annuity. The Pension Fund Regulatory and Development Authority has said that Rs 13 lakh crore has been deposited in NPS, while equity funds are showing a compounded growth rate of 14.2% annually. NPS Vatsalya seeks to give the benefit of compounding rate to minors. PFRDA is trying to improve its operations and is also considering suggestions for improvement.
What is Sukanya Samriddhi Yojana? Smart Investment
Sukanya Samriddhi Yojana is a scheme specially designed for girls. Under this scheme, an account can be opened in the name of girls up to the age of 10 years. If you open an account in this scheme, you can invest a minimum of Rs 250 and a maximum of Rs 1.5 lakh annually. The interest rate on Sukanya Samriddhi Yojana is currently 8.2%, which changes every three months. Because the interest rates are good, they get good returns. After the girl turns 18, some money can be withdrawn from this account for her higher education. Also, all the money can be withdrawn from the account after the girl turns 21.
Public Provident Fund
Public Provident Fund is a long-term investment scheme that is available to all Indian citizens. Can be attributed to children, as well as adults. These 2 big rules of the saving account are not known to many people, know that it will be beneficial. A minimum of Rs 500 has to be paid every year in this account and a maximum of Rs 1.5 lakh can be paid. The PPF interest rate is around 7.1% and it is fixed and stable. After seven years of accounting, some of it can be withdrawn. Also, all the amount can be withdrawn from the account after 15 years. Then the account can be extended for every five years. PPF is known for its stability and tax relief benefits.
Which plan is better?
Which plan to choose among PPF, Sukanya Samriddhi Yojana and NPS Vatsalya Yojana depends on one's financial goals and investment preferences. NPS Vatsalya Yojana is good for those who are looking for flexibility and potentially big growth. Sukanya Samriddhi Yojana is good for those who want to invest high interest rates for girls. PPF is a reliable and stable investment option.
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