What is Atal Pension Yojana?
Atal Pension Yojana (APY) is a government-backed pension scheme in India aimed at providing a fixed pension to individuals during their old age. It’s primarily designed for workers in the unorganized sector. Participants contribute to the scheme regularly, and the scheme offers guaranteed pension benefits ranging from Rs. 1,000 to Rs. 5,000 per month, depending on the amount contributed and the age at which the contributions start. The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA).
When was atal pension Yojana launched?
Atal Pension Yojana (APY) was launched by the Government of India on May 9, 2015. The scheme was introduced to address the need for a sustainable pension system for workers in the unorganized sector, ensuring financial security during their retirement years.
Who is eligible?
Atal Pension Yojana (APY) is targeted towards individuals in the unorganized sector who do not have access to formal pension schemes. The eligibility criteria are as follows:
1. Age Limit: Individuals between the ages of 18 and 40 can join the scheme.
2. Contributions: The participants need to contribute regularly until the age of 60. The earlier a person joins, the lower the contribution amount.
3. Bank Account: It is mandatory to have a savings bank account.
4. Pension Amount: Individuals seeking to enroll should have a willingness to receive a fixed pension amount between Rs. 1,000 to Rs. 5,000 per month, depending on their contribution amount and the age at which they start contributing.
Eligible individuals can enroll in the scheme through participating banks or through the online portal provided by the National Pension System (NPS).
What is the interest rate of atal Pension Yojana?
Atal Pension Yojana (APY) does not offer a fixed interest rate. Instead, the returns are dependent on the performance of the pension fund chosen by the subscriber. APY contributions are invested in a mix of government securities, equity, and related instruments.
The actual returns can vary based on market conditions and the fund’s performance. It’s important to note that APY is primarily a pension scheme, and the focus is on providing a fixed pension amount during the retirement years rather than offering an interest rate on contributions. The pension amount is guaranteed, but the returns on investment are market-linked. Participants can choose their Pension Fund Manager from the options provided by the Pension Fund Regulatory and Development Authority (PFRDA).
How to apply for atal pension Yojana?
To apply for the Atal Pension Yojana (APY), you can follow these steps:
1. Eligibility Check: Ensure that you meet the eligibility criteria, including being in the age group of 18 to 40.
2. Bank Account: Have an active savings bank account. If you don’t have one, you may need to open an account with a bank that offers APY.
3. Visit Bank: Visit a bank branch that is enrolled in the Atal Pension Yojana. Most public and private sector banks are authorized to offer APY.
4. Application Form: Obtain the Atal Pension Yojana application form from the bank. You can also download it from the official website of the scheme.
5. Fill the Form: Fill in the required details accurately, including your personal information, nominee details, and contribution amount.
6. Submit Documents: Submit the necessary documents such as identity proof, address proof, and age proof along with the filled application form.
7. Provide Mobile Number: Provide your mobile number, as it will be used for communication regarding the scheme.
8. Contribution Setup: Choose the pension amount you want to receive and set up the regular contribution amount based on your age.
9. Auto-Debit Authorization: Authorize the bank for auto-debit of the contribution amount from your savings account.
After completing these steps, your application will be processed, and you will be enrolled in the Atal Pension Yojana. It’s advisable to keep track of your contributions and periodically review your pension account.
Which banks provide atal pension Yojana?
Several banks, both public and private, provide the Atal Pension Yojana (APY) in India. Some of the prominent banks offering APY include:
1. State Bank of India (SBI)
2. Punjab National Bank (PNB)
3. Bank of Baroda (BOB)
4. Canara Bank
5. ICICI Bank
6. HDFC Bank
7. Axis Bank
8. Union Bank of India
9. Central Bank of India
10. Indian Bank
It’s important to note that this list is not exhaustive, and many other banks and financial institutions across the country are authorized to offer the Atal Pension Yojana. Individuals interested in joining the scheme can visit their nearest bank branch to inquire about the process and submit their applications.
To know How much you should invest for what amount of pension Click Here
If you have a girl child you should definitely check out Sukanya samriddhi yojana