In today's time, everyone starts saving for their child early. So, are you planning to invest in your children's future and are confused between NPS Vatsalya and Sukanya Samriddhi Yojana (SSY) as to which one to choose? So let us tell you that both of these are government schemes, but their benefits and objectives are different. So let us know about both the schemes so that you can easily choose the right investment option for children.

What is NPS Vatsalya Yojana?

NPS Vatsalya Scheme is a long-term investment scheme for children. It is operated by the Pension Fund Regulatory and Development Authority (PFRDA). In this scheme, an account can be opened in the name of a child below 18 years of age. It is necessary to deposit at least ₹ 1,000 annually in this scheme, while there is no maximum limit.

In this scheme, money is invested in asset classes like equity and debt, which can give an average return of 9.5% to 10%. In this special scheme for children, up to 25% withdrawal can be done for education or emergency after 3 years.

Understand Sukanya Samriddhi Yojana (SSY)

Sukanya Samriddhi Yojana is run by the government especially for daughters. In this, the account can be opened only till the age of 10 years for the girl. Investment can be made in it for 15 years, and the scheme remains active for 21 years. This scheme made for daughters is giving about 8.2% annual interest, which the central government changes every quarter.

By the way, an investment of ₹ 250 to ₹ 1.5 lakh can be made annually in this scheme. Up to 50% can be withdrawn after your daughter turns 18 or passes the 10th standard, and the entire amount can be withdrawn after 21 years or marriage (at least 18 years of age).

Which scheme is better for you?

On the other hand, if you want to create a great fund with long-term investment for both your son and daughter, then it would be wise to choose the option of NPS Vatsalya.

Understand the comparison of both in simple words.

So, if you are looking for an investment plan for your child's future, then both NPS Vatsalya and Sukanya Samriddhi Yojana (SSY) are great options. NPS Vatsalya is for both boys and girls, in which you can get a return of up to 9.5%–10%. On the other hand, SSY is only for daughters, and it gives a fixed interest of 8.2%. In NPS, partial withdrawal is possible after 3 years, while in SSY, money can be withdrawn after 18 years.

So if you are planning to invest to secure your child's future, and want their future to be financially strong, then you can choose any one of the two options according to your convenience. (Note: This article is for information only and should not be considered as investment advice in any way; it is suggested to consult financial advisors for investment).

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