Atal Pension Yojana (APY) is a pension scheme launched for all citizens of the unorganized sector.
The scheme is run by Pension Fund Regulatory and Development Authority (PFRDA) through NPS architecture. Under Atal Pension Yojana, a minimum pension of Rs 1,000 and a maximum of Rs 5,000 per month is given to the subscribers. The minimum pension benefit is guaranteed by the Government of India. The good thing is that you can get a monthly pension of Rs 5000 just by depositing Rs 7.Also Read: OPPO-JIO’s big bang – A15 3GB smartphone will get cheaper, benefit up to ₹ 7000, no cost EMI for 6 months
Government will also deposit money
Under this scheme, the government also co-contributes 50 percent of your contribution or Rs 1,000 per year, whichever is less. But the government tax will be available to those people who are not covered under any statutory social security scheme and also do not pay income tax. Now let us know what are the conditions of investment in this scheme.Also Read: Why Provident Fund is the perfect fund? Here understand the complete ABCD of EPF, how VPF also does wonders
Who can invest
The age of the subscriber should be between 18 to 40 years. He should have a Savings Bank Account / Post Office Savings Bank Account. You must have an Aadhar number and a mobile number. In case of death of the subscriber due to any reason, the pension will be given to the spouse and on the death of both of them (the subscriber and the spouse), the pension amount will be given to his/her nominee.
How much premium will have to be paid
Your premium will also be decided according to the amount of pension you want. If an 18 year old opens an APY account and wants a monthly pension of Rs 1000 every month, then he has to deposit only Rs 42 per month. You have to invest Rs.84 for monthly pension of Rs.2000, Rs.126 for monthly pension of Rs.3000, Rs.168 for monthly pension of Rs.4000 and Rs.210 per month for monthly pension of Rs.5000. According to Rs.210, the daily expenditure was Rs.7. If you want to get a monthly pension of Rs 5000 and your age is above 18 years then obviously the premium will also be higher. The pension amount starts at the age of 60 years and continues for life.Also Read: IRCTC offers cashback discount in fares for woman passengers on rakshabandhan, see details
All banks provide facility
All the banks in the country offer the facility to open APY account. Visit the branch of the bank where you have an account and register for APY. Apart from online, registration forms are also available at bank branches. You can download the form and submit it to the bank. Or you can take it in the bank itself and fill it there and deposit it.Also Read: ITR Filing: Income tax is not worth earning, yet tax return should be filed, many benefits are available
Penalty for default in contribution:
– Re 1 on contribution up to Rs 100 per month
– Rs.2 per month on contribution from Rs.101 to Rs.500 per month
– Rs.5 per month on contribution from Rs.501 to Rs.1000 per month
– Rs.10 per month for contribution above Rs.1001
