Investment: Which scheme is best for your child's future? Where to invest in NPS Vatsalya or Sukanya Samriddhi Yojana..

If you are looking for an investment plan for your children's future (Child Investment Plans 2025), then you have two strong government schemes... NPS Vatsalya and Sukanya Samriddhi Yojana. One scheme focuses on long-term retirement funds, while the other is a safe saving option. Both have different benefits, but which scheme is better for you? Let us know...

What is NPS Vatsalya Yojana?

Launched in the budget of 2024–25, NPS Vatsalya is a long-term investment scheme, which is specially opened in the name of children. It is operated by PFRDA and an account can be opened in the name of a child below 18 years of age. It is necessary to deposit at least Rs 1000 every year, while there is no maximum limit.

In this scheme, a return of about 9.5% to 10% is expected in the long term. After the completion of 3 years, up to 25% of the money can be withdrawn for education or emergency. For tax exemption, apart from 80C, an extra deduction of up to Rs 50,000 is available under 80CCD (1B).

What is Sukanya Samriddhi Yojana?

Sukanya Samriddhi Yojana is only for daughters. In this, an account can be opened in the name of a girl up to 10 years of age. Investment is made for 15 years and the scheme remains active for 21 years. Currently, a fixed interest of 8.2% is being given in it, which is decided by the Central Government every quarter. Every year, an investment of Rs 250 to Rs 1.5 lakh can be made in it.

This scheme is completely tax-free - there is no tax on investment, interest and maturity amount. Up to 50% of the money can be withdrawn after the girl turns 18 or after 10th class, and the entire amount is available after 21 years or upon marriage (after 18 years of age).

Which scheme is right for whom?
If you aim to create a safe and fixed fund for your daughter's education or marriage, that is, you want a safe and tax-free saving only for your daughter, then Sukanya Samriddhi Yojana is a reliable option. But if you want to create a large fund for retirement or the future by making long-term investments in the name of the child, then NPS Vatsalya can be a more flexible and better return-giving option.

In simple words, if you are making an investment plan (Best Investment Plans in India) for both son and daughter, then NPS Vatsalya is a modern fund option, which provides both the benefit of market growth and pension benefits.

Both these schemes are made for different needs. To make the right decision, it would be better to keep in mind your investment goals, time, and tax planning. If you want, you can move forward by maintaining a balance between the two.