Atal Pension Yojana (APY)
Features & Benefits
A guaranteed minimum monthly pension ranging from ₹1000 to ₹5000 per month from the age of 60 depending up on the contributions by the subscribers.
The spouse will be the default nominee under the APY scheme for married subscribers. It is important for married subscribers to nominate someone other than their spouse to ensure that the pension corpus is passed on to another family member in the absence of both the subscriber and the spouse.
Contributions to APY are eligible for income tax exemption under section 80 CCD (1B)
Eligibility Criteria
- All Indian citizens (including NRIs) aged between 18 and 40 years who are not income taxpayers and have a savings bank account are eligible to join APY.
- If the subscriber is found to be an income-tax payer on or before the date of application, their APY account will be closed and the accumulated pension wealth to date will be refunded to the subscriber.
- If a subscriber becomes an income-tax payer at a later date, it will not affect their APY account. All APY subscribers can continue their accounts and contributions to enjoy the benefits provided under the scheme.
Contribution
- The contribution amount is calculated based on the age of the subscriber and the monthly pension opted for.
- Subscriber can choose the contribution frequency: Monthly/Quarterly/Half Yearly
- Contributions are deducted automatically from the subscriber’s savings bank account through the auto-debit facility.
Exit Option
- Voluntary Exit before the age of 60 years
Subscriber may exit from the scheme voluntarily by submitting a request letter in the prescribed form. Contributions made will be refunded along with the net accrued income earned on the contributions after deducting account maintenance and investment management charges.
- Death of the subscriber due to any cause before the age of 60 years
- The spouse of the deceased subscriber may continue the APY account by contributing for the remaining vesting period to receive the pension opted by the original subscriber upon reaching the age of 60 years.
- If the spouse chooses to exit from the scheme, the accumulated corpus will be settled in their name.
- After the demise of both the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till age 60 of the subscriber.
Enrollment Options for APY
- eAPY - digital APY onboarding facility based on Aadhaar eKYC
- Federal Bank WhatsApp Hub: Send a ‘Hi’ to 9633 600 800
- Enrol via FedMobile – Mobile banking app
- Enrol via Fednet – Internet banking
- Visit your nearest Federal bank branch and submit the Subscriber Registration Form.
- For more scheme related information, Click here
