Atal Pension Yojana Has 5 Unknown Features
Table of Contents
The Atal Pension Scheme is accessible through India Post branches that provide basic banking services. Anyone between the ages of 18 and 40 at the time of subscription is eligible for the plan. In consideration of the contribution to the retirement fund under the Atal Pension scheme, a fixed sum is withdrawn from the bank account of the eligible and registered subscriber. The amount of the deposit fluctuates according to parameters such as the subscriber's age and desire for a monthly pension.
Features About the Atal Pension Yojana That You Didn't Know
The following are the key facts concerning the Atal Pension Scheme:
- Eligibility required: Employees must be over the age of 40 to apply for the Atal Pension scheme, and they can only have one APY account. Individuals must have a savings account, either at a bank or at the post office.
Fixed monthly payment options: The Atal Pension Scheme currently offers five fixed monthly payment options: Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, and Rs 5,000. - Deposit amount: The amount decided upon account activation is debited from the subscriber's account on a monthly, quarterly, or semi-annual basis. The monthly payout ranges between Rs 42 and Rs 1,454. When the APY account is created, the initial payment is debited from the subscriber's savings account.
- Payment Method: Contributions are paid at predefined 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, guaranteeing that the government makes up any difference between the total determined returns and the predicted returns for the contribution period. Any greater returns, on the other hand, are sent to the subscriber's savings account.
- Maintenance of an APY account: After active approval, the subscriber just needs to retain the installment amount in the linked savings account on the stated deadlines to ensure serviceability.
In the case of a late contribution: If a subscriber does not have a sufficient amount in his or her savings account by the deadline, the APY plan has the option of refunding a delayed payment as well as overdue interest. The deposit amount, plus late interest, is repaid the next month at a rate of Rs 1 for every Rs 100 of the outstanding monthly deposit amount. - In case of default: In the event of a persistent failure, account maintenance fees and other applicable costs are deducted from the Atal Pension account on a regular basis. When the account balance hits zero, the account is closed instantly.
- Monthly contribution flexibility: It is possible to move to a lower or higher monthly payment amount under specific circumstances. This period is only available once a fiscal year, in April.
Conclusion
The Atal Pension Yojana outperforms all other annuity plans on the market. For example, for a corpus of Rs 8.5 lakh, the monthly income given by most life insurers under this annuity option is presently about Rs 4,000, whereas Atal Pension Yojana provides Rs 5,000.
Also read- Importance And Benefits Of Life Insurance
