A few facts about how Atal Pension Yojana (APY) works that you should know before you invest.
If you stop paying your contributions:
- The account isn't closed just because you stopped paying.
- Account maintenance charges keep being deducted from your balance.
- If the balance falls to zero, the account is closed.
Keep enough money in your bank account for the auto-debit to go through. You can bring a lapsed account up to date by paying the overdue contributions with overdue interest.
Any overdue interest you pay stays in your pension corpus.
Subscribers get regular SMS alerts about contributions, balance and credits.
You can open only one account.
The government pays banks an incentive for the APY accounts they open and keep running.
Atal Pension Yojana (APY) contributions are invested as per the investment guidelines PFRDA prescribes for APY, by the SBI, LIC and UTI pension funds.