1. Benefits at Age 60
- Guaranteed minimum pension of Rs. 1,000–Rs. 5,000 per month (based on contributions).
- Spouse receives the same pension for life after the subscriber’s demise.
- After both pass away, the nominee gets the accumulated pension wealth.
2. Tax Benefits
APY contributions qualify for deductions under Section 80CCD(1), reducing your taxable income.
While APY offers tax savings, remember that FDs provide guaranteed returns without market risk. Bajaj Finance FDs let you choose flexible tenures between 12–60 months for short- and medium-term goals. Check FD rates.
3. Voluntary Exit (Before Age 60)
Subscribers can exit early and receive a refund of contributions plus accrued income (minus charges).
4. Death Before Age 60
- Spouse can continue contributions and receive pension benefits.
- Alternatively, the nominee can withdraw the entire corpus.
Eligibility criteria of Atal Pension Yojana
To join APY, you must:
- Be 18–40 years old.
- Hold a savings bank or post office account.
- Not be an income tax payer (as of Oct 2022).
If you are above 40 or not eligible for APY, you can still secure your future with a Bajaj Finance FD, open to individuals of all age groups, including senior citizens who enjoy higher interest rates of up to 0.35% p.a. Book FD.
How to open an Atal Pension Yojana account
- Visit your bank branch or website to access the APY form.
- Fill the form with personal, nominee, and pension details.
- Submit the form with a photocopy of your Aadhaar card.
- Contributions will be auto-debited from your account.
Nomination in Atal Pension Yojana account
- Married subscribers: spouse is the default nominee.
- Unmarried subscribers: can nominate another person but must update post-marriage.
- Aadhaar details of spouse/nominee can be linked.
How to fill application form
To fill out an Atal Pension Yojana (APY) application form, follow these steps:
- Section 1 – Include your bank information, such as bank name, bank account number, and bank branch details.
- Section 2 – Fill in personal information, including your name, date of birth, email-ID, marital status, spouse's name, nominee's name, relationship with the nominee, age, and mobile number. Also, provide Aadhar Card details of your spouse (if married) and nominee.
- Section 3 – State the chosen pension amount: Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, Rs. 5,000. Based on the pension amount, the monthly investment amount will be calculated and filled in by the bank.
Additional read: Ladli Laxmi Yojana
Atal Pension Yojana Penalty charges
- Contributions up to Rs. 100/month → Penalty Rs. 1
- Rs. 101–Rs. 500 → Penalty Rs. 2
- Rs. 501–Rs. 1,000 → Penalty Rs. 5
- Above Rs. 1,000 → Penalty Rs. 10
If you miss payments:
- 6 months → Account frozen
- 12 months → Account deactivated
- 24 months → Account closed
To avoid penalties or missed savings, diversify with FDs, where contributions are one-time, and interest is assured till maturity. Invest now and earn interest of up to 7.30% p.a. Open FD account.
How is APY money invested?
- 45–50% in government securities
- 35–45% in bank term deposits and debt securities
- 5–15% in equities
- Up to 5% in money market instruments
Tax benefits for APY subscribers
- Deduction up to 10% of income, max Rs. 1.5 lakh under Section 80CCD(1).
- Additional deduction of Rs. 50,000 under Section 80CCD(1B).
Alongside APY’s tax benefits, you can grow your money faster with Bajaj Finance FDs, offering guaranteed returns unaffected by market volatility. Book FD.
