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Vatsalya NPS Account: Everything You Need To Know
Hello, friends! Today, I am going to tell you how to open a Vatsalya NPS account. It is a special savings account for kids. It helps you save money for your future. Let’s learn step by step how to open this account!
What is Vatsalya NPS?
First, let’s understand what Vatsalya NPS is. NPS stands for National Pension System. The Vatsalya NPS is made for children. It helps parents save money for their kids’ education and other needs. This money grows over time. When you grow up, you can use this money for important things like for higher studies or starting a business.
Why Open a Vatsalya NPS Account? Benefits!
If you are thinking why you should open this account. Here are some reasons:
- Save for the Future: This account helps you save money for big dreams.
- Good Interest Rates: The money you save earns interest. This means it will grow over time.
- Tax Benefits: Parents can save money for tax benefits if they invest in this account.
- Flexibility: You can put in small amounts of money regularly.
- Saving Habit: It will enhance the saving habits in kids and they will not spend money unnecessarily.
Who Can Open a Vatsalya NPS Account?
| Parameters | Requirements |
|---|---|
| Age Requirement | Child must be between 0 to 18 years old. |
| Account Holder | Parents or guardians open the account for the child. |
| Benefits | Saves for the future Good interest rates Tax benefits Flexible contributions |
| Monitoring | Keep track of savings and growth regularly. |
Only parents or guardians can open this account for their kids. The child must be between 0 to 18 years old. So, if you are a child, ask your parents to help you!
Steps to Open a Vatsalya NPS Account
Now, let’s know the steps to open a Vatsalya NPS account.
Here’s a detailed table explaining the steps to open a Vatsalya NPS account, along with the necessary documents and other details.
| Step | Description | Details |
|---|---|---|
| 1. Required Documents | Collect all the required documents before starting the process. | Identity proof of parent/guardian Birth certificate of the child Address proof Photographs (passport-sized) |
| 2. Choose a POP | Find a NPS Point of Presence (POP) where you can open the account. | Look for banks or financial institutions that offer NPS services. |
| 3. Fill Out the Application Form | Complete the application form with the required details. | Name of the child Date of birth Address Parent’s details |
| 4. Submit Required Documents | Submit the documents along with the application form. | Identity proof Birth certificate Address proof Photographs |
| 5. Make the First Deposit | Deposit the minimum required amount to open the account. | The minimum amount is Rs. 1000/year. |
| 6. Receive the PRAN | Get a unique Permanent Retirement Account Number (PRAN). | This number is essential for tracking your account. |
| 7. Online Registration (Optional) | Optionally, your parents can register online through the NPS official website. | This allows the management of your account from home. |
| 8. Monitor Your Account | Regularly check your account to see how much money is saved and growing. | Parents can help you check online or through statements. |
| 9. Ways to Contribute Regularly | Different ways to add money to your account regularly. | Save your pocket money Save birthday cash gifts Save money gave by relatives |
Firstly, open the official website of NPS Vatsalya and choose a platform from the given three options as listed below and shown in the image below:
- Protean
- KFINTECH
- CAMSNPS
Step 1: Gather Documents
Before you start, you need some documents. Here is a list:
- Identity Proof of Parent/Guardian: This can be a passport, voter ID, or Aadhaar card.
- Birth Certificate of the Child: This shows your age.
- Address Proof: This can be a utility bill or bank statement.
- Photographs: You will need a few passport-sized photos of the child.
Step 2: Choose a NPS Point of Presence (POP)
Next, you need to find a NPS Point of Presence (POP). This is a place where you can open the account. You can find POPs in banks or financial institutions. Ask your parents to help you choose a POP.
Step 3: Fill Out the Application Form
When you reach the POP, you will find an application form. Your parents need to fill this form. They will need to provide details like:
- Name of the child
- Date of birth
- Address
- Parent’s details
Make sure all the information is correct.
Step 4: Provide Required Documents
Once the form is filled, you need to submit the documents. Your parents will hand over the identity proof, birth certificate, address proof, and photographs to the POP. They might also need to provide their own documents.
Step 5: Make the First Deposit
To open the account, you need to make a small deposit. This is the money that will start your savings. The minimum amount to start a Vatsalya NPS account is usually small. Your parents can help you with this.
Step 6: Receive the PRAN
After completing the application, you will receive a unique number called PRAN (Permanent Retirement Account Number). This number is very important. It helps you track your account and savings.
Step 7: Online Registration (Optional)
If you want, your parents can also register online. They can visit the NPS website and follow the steps to open the account. This way, they can manage everything from home. It’s fast and easy!
Step 8: Monitor Your Account
Once the account is open, it’s important to keep an eye on it. You can check how much money is saved and how it is growing. Your parents can help you with this.
How to Contribute Regularly
Now that your account is open, it’s time to save! Here are some ways to contribute regularly:
- Pocket Money: Save a part of your pocket money every week or month.
- Gifts: When you receive money as a gift, consider saving a portion in your NPS account.
- Relatives Offerings: If your relatives offer you money you can save some of it.
FAQs
Q: What is Vatsalya scheme for?
A: The Vatsalya scheme is for 0-18 years old kids. Only parents or guardians can open an account in this scheme for their parents.
Q: How much money can be deposited in vatsalya scheme?
A: You can deposit a minimum amount in this scheme i.e. Rs. 1000/- per annum.
Q: Is NPS vatsalya taxable?
A: This scheme comes under EEE that is no tax liabilities, as per the CNBC report.
Conclusion
Opening a Vatsalya NPS account is a great way to save for the future. It teaches you the value of saving money. You can watch your savings grow over time. Always remember, the earlier you start saving, the more money you can have when you grow up!
So, talk to your parents today. Ask them to help you open a Vatsalya NPS account. Start saving for your dreams. For more such information keep visiting WikiGyan.
