5 Unknown Features About Atal Pension Yojana
Table of Contents
The Atal Pension Scheme is available at India Post branches that offer basic banking services. The plan is open to anybody between the ages of 18 and 40 at the time of subscription. A predetermined sum is deducted from the bank account of the eligible and registered subscriber in consideration of the payment to the retirement fund under the Atal Pension programme. The deposit amount varies depending on factors such as the subscriber's age and request for monthly pension.
Unknown Facts About Atal Pension Yojana
The facts you need to know about the Atal Pension Scheme are as follows:
Eligibility required: Employees must be over the age of 40 to apply for the Atal Pension plan and can only have one APY account. It is critical that the individual have a savings account, either at a bank or at the post office.
Options for fixed monthly payments: The Atal Pension Scheme now offers five fixed monthly pension options: Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, and Rs 5,000.
Amount of deposit: The amount selected at the time of account activation is deducted from the subscriber's account on a monthly, quarterly, or semi-annual basis. Every month, the payment varies between Rs 42 and Rs 1,454. The initial instalment is deducted from the subscriber's savings account when the APY account is opened.
Payment Method: Contributions are made at predetermined intervals, such as monthly, quarterly, or half-yearly, using an auto-debit facility linked to the subscriber's savings account.
Guaranteed pension benefit: The Atal Pension plan guarantees a minimum pension, ensuring that the government solves any deficiency in the total determined returns as compared to the projected returns during the contribution period. Any larger returns, on the other hand, are deposited into the subscriber's savings account.
Maintenance of an APY account: After active approval of the account, the subscriber merely has to keep the installment amount in the connected savings account on established deadlines to ensure serviceability.
In the event of a late contribution: If a subscriber does not have a suitable amount in his or her savings account by the deadline, the APY scheme provides an option to reimburse a delayed instalment as well as outstanding interest. The deposit amount, plus late interest, is refunded the next month, at a rate of Rs 1 per month for every Rs 100 of outstanding monthly deposit amount.
In case of default: In the event of a persistent failure, account maintenance fees and other relevant charges are taken from the Atal Pension account on a regular basis. When the account balance reaches 0, the account is immediately canceled.
Monthly contribution flexibility: Under certain situations, it is possible to change to a lower or higher monthly payment amount. This time is only accessible once a fiscal year, in the month of April.
Conclusion
The APY performs better than other annuity products available on the market. For example, the monthly income offered by most life insurers under this annuity option for a corpus of Rs 8.5 lakh is now about Rs 4,000, whereas APY ensures Rs 5,000.
Also read- Top 5 Benefits Of Pradhan Mantri Kisan Mandhan Yojana.
