A new scheme launched.
India’s Finance Minister, Nirmala Sitharaman, has launched a cool new plan called the National Pension System (NPS) Vatsalya scheme.
It’s like a special pension account that helps parents save money for their kids! Parents can open this account before their child turns 18. When the child turns 18, the account becomes a regular NPS account for adults.
The money in the account grows over time, and when the child turns 60, they start getting a pension!
Pension? What’s that?
A pension is a special savings plan for when people stop working. They save money while working, and after they retire, they get regular payments from these savings to help them enjoy their retirement.
Imagine you have a jar where you save candies each month for a big party. By the time the party comes, you have lots of candies to enjoy!
A pension works the same way, but instead of candies, people save money from their salaries, which grow over time. When they stop working, they get regular payments from their money jar. This helps them buy things they need and enjoy their retirement!
Opening and depositing money in NPS Vatsalya.
With this plan, parents can start saving with just Rs 1,000 a year and add more money if they want.
Indian citizens can open an NPS Vatsalya account online or at banks and post offices. After opening the account, they keep the money in for three years. Then, they can take out money up to three times to pay for things like school.
When the child grows up, they can close the account instead of changing it into a regular NPS account and get all the money saved by following some rules. This plan is an excellent method to save money for one’s children and prepare them for the future!
