Public Provident Fund Vs Atal Pension Yojana: Facts to be known

 

Public Provident Fund Vs Atal Pension Yojana: Facts to be known

What PPF & APY Schemes are all about?   

The government of India has launched two most beneficial financial plans for the betterment of the economic health of Indian citizens. These funds saving schemes are Public Provident Fund (PPF) and Atal Pension Yojana (APY). Both these schemes are open for all the Citizens of India without any kind of discrimination of caste and creed.

The PPF is long-term tax saving scheme launched by the Indian government with the aim of endowing the unorganized sector with the social security cover. And, the APY scheme is introduced with the aim of proving Income security to the senior citizens of the country (India).

Minimum & Maximum age limit for PPF and APY:

In case you want to open a Public Provident Fund account then, there is no age limitation for the same. But, if we talk about the Atal Pension Yojana then, the age of the subscriber should be minimum 18 years and not more than 40 years.

Public Provident Fund Vs Atal Pension Yojana

Maturity Period of PPF & APY:

The Public Provident Fund scheme includes the maturity duration of 15 years. Whereas, the Atal Pension Yojana is considered to be mature till the time the account holder turns 60 years. So ultimately, the duration totally depends upon the time of joining the APY Scheme.

Deposit Limit for the Schemes: 

Minimum Amount in PPF as per rule is Rs 500 per year. This means that you have to pay at least this money every financial year. In case a candidate fails to maintain the least required account balance then, he shall be liable to pay a penalty of 50 rupees. The maximum limit of deposit in the PPF account is 1.5 lakh rupees yearly and not more than that. The maximum number of installments allowed in PPF scheme is limited to 12 per year. In case a person deposits excess amount in comparison to what is allowed then, the entire interest earned on the extra contribution in the PPF account will be reversed.

In Atal pension Yojana a person can opt for a minimum pension of rs 1000 per month to a maximum pension of rs 5000.

Duration of Contribution to the PPF & APY Account:

The Public provident Fund account includes the duration of 15 years for depositing amount on a regular basis. If we talk about the Atal Pension Yojana, the duration of contribution entirely depends upon the subscriber’s age on which the account has opened. For instance, if a person has opened an APY account at the age of 18 then, the duration of contribution for that particular person will be 42 years, whereas the contribution duration for a person who has initiated the account at the age of 40 will be 20 years accordingly.

Savings Interest for the Schemes:

If a person deposits under the Public Provident Fund scheme then, he/she will get 8.70 percent of interest every year. In case of the Atal Pension Yojana, the subscriber will get the interest rate in accordance with the contributions made by him/her to the APY account. However, the amount of monthly pension is fixed.

Early Withdrawal:

Under the Public Provident Fund scheme, the government allows the subscriber to withdraw half of the accumulated amount in case of urgent monetary requirements. If we talk about the Atal Pension Yojana, no early withdrawal is allowed. The premature withdrawal of cash is permitted just in case of some fatal disease.

Number of accounts allowed per person:

According to the rules of the Atal Pension Yojana and the Public Provident Fund only one account per person is allowed by the government. Additionally, it is obligatory for the subscriber to own a savings bank account to get linked with these schemes.

Other Articles

  1. APY Premium Plans
  2. APY Calculator
  3. APY Penalty

  4 Responses to “Public Provident Fund Vs Atal Pension Yojana: Facts to be known”

  1. my DOB is 28-11-1988 ,can I join APY. In future if I shall get any GOVT job ,shall I continue APY. What will be the contribution for Rs.5000/ pension amount.

    • Yes you are still eligible to invest in APY. just google APY premium sheet. you will get to know the contribution according to your age. you can continue APY but it will stop govt contribution which is valid till first five years. if you get job before this it will be stopped and also if you have any EPF or you are tax payer you are not eligible for govt contribution.

  2. I am a public sector bank employee and already enrolled with depository contributed provident fund(dcpf).now our management asked us to enroll with Atal pension yojana.
    am i really eligible for both pensions
    i have alredy joined the scheme too
    pls advice

  3. Dear sir,
    I am 39 year old and want to open APY account. is this still open as i visited to SBI bank they said that they are not sure that this scheme is still running after 31 December’15
    i am working in corporate sector and covered under EPF scheme,can i avail this scheme.

    Regards
    shailesh vashishth

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