In order to provide a general social security net for all Indians, especially the underprivileged, persecuted, and those employed in the unorganised sector, the Atal Pension Yojana (APY) was introduced on May 9, 2015. The Pension Fund Regulatory and Development Authority oversees the APY (PFRDA). The contributions vary depending on the chosen pension amount and are open to all bank account holders between the ages of 18 and 40.
With the caveat that beginning on October 1, 2022, any resident who is or has ever paid income taxes is unable to join APY.
Subscribers would start to get the minimum monthly pension starting from Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000 upto Rs. 5000 after they reach the age of 60.
Beneficial Features Provided by Atal Pension Yojna for its subscribers
- The person who has subscription and after him, his spouse, would both be eligible for the withdrawal of monthly amount of pension. The subscriber’s contender would inherit the subscriber’s pension fund as it had grown by the time they passed away at age 60.
- In the event of an early death of the subscriber (death even before age of 60), the subscriber’s spouse may continue making contributions to the APY account of the customer for the balance of the vesting term until the original subscriber turns 60.
- The government would guarantee the minimum pension, which means that it would make up any gap if the donations-based corpus collected produced a lower return on the investment than expected. In contrast, if investment returns are higher, subscribers would receive improved pension benefits.
- Subscribers have the option of making monthly, quarterly, or half-yearly payments to APY.
- Subject to a few restrictions and after deducting the Government co-contribution and any interest or return thereon, Subscribers may voluntarily withdraw from the APY.
A brief summary on opening a Post Office Savings Account
Most people would prefer to have a savings account since it is straightforward to deposit money into one and to withdraw money when needed. The conditions for opening and maintaining an emergency fund have lately been relaxed in comparison to former eras.
Similar to opening a savings online bank account, you can do so with the Post Office. Along with other benefits, the National Savings Account offers alluring interest rates.
Elligibility Criterias For opening a Post Office Savings Account
- An adult can start a savings account at the post office.
- Indian adult status is required.
- A minor must be at least 10 years old in order to open a post office savings account.
- Additionally, a guardian may open an account on the minor’s behalf.
- An account at the post office can be opened jointly by two or three people.
- A post office savings account can be opened by someone who is not of sane mind.
Requirements for Application of Atal Pension Yojna
You must meet the following criteria in order to be eligible for the Atal Pension Yojana benefits:
- Must be an Indian citizen.
- Applicant should age between the ages of 18 and 40.
- Should put in at least 20 years worth of donations.
- Bank account should be linked with Aadhar Card.
- A working mobile phone number
How to Open a Post Office Savings Account
- Find a form online or at the nearby post office. Senior citizens have access to different forms.
- Fill out the form and send it in with the required KYC paperwork and photos.
- Pay the desired deposit amount, which must be less than Rs. 20.
- The minimum deposit amount needed to start a post office savings account without a chequebook is Rs. 50.
- Senior citizens have access to different forms.
- Your savings account will be established once you pay the sum.
Benefits of Atal Pension Yojna
Automatic Debit: The Atal Pension Yojana’s automatic debit feature is one of its main features. You can link your bank account to your Atal Pension Yojana account as a beneficiary of this programme, and your monthly payment will be debited as a result.
Feature to Increase Contribution: As previously said, after you turn 60 years old, you become eligible for the Atal Pension Yojana pension. Your contribution to this plan determines how much of a pension you will receive.
Guaranteed Pension: Depending on your monthly payment, Atal Pension Yojana beneficiaries are eligible to receive a periodical pension of Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000, or Rs. 5000.
Disadvantages of Atal Pension Yojna
- Over time, inflation will reduce its worth.
- Even at today’s rates, the highest pension under APY of Rs 5000 could not be enough to pay the majority of household expenses.
For those who work in the unorganised sector, the Atal Pension Yojna is a lifesaver in terms of financial planning. Investors are allowed to make reasonable contributions and profit from them through retirement pensions.
Krishna Murthy is the senior publisher at Trickyfinance. Krishna Murthy was one of the brilliant students during his college days. He completed his education in MBA (Master of Business Administration), and he is currently managing the all workload for sharing the best banking information over the internet. The main purpose of starting Tricky Finance is to provide all the precious information related to businesses and the banks to his readers.