Atal Pension Yojana SBI - Characteristics, Apply Online, Benefits

A pension plan with Atal Pension Yojana (APY) via State Bank of India (SBI) helps people save small regular amounts now so they get a guaranteed monthly pension after turning 60. It is especially useful for workers in informal and unorganized sectors who may not have formal retirement benefits.

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What is Atal Pension Yojana (APY) via SBI

• Atal Pension Yojana is a pension scheme launched by the government of India in 2015.
• The scheme is meant for citizens who may not have formal retirement benefits especially those in unorganized sectors.
• If you join APY through SBI, contributions come directly from your SBI savings account, and once eligible, the pension amount gets credited to the same account.

Key Features of APY under SBI

• Under APY you get a guaranteed pension: subscriber can choose to receive a fixed monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000 or ₹5,000 upon turning 60.
• The pension guarantee is backed by the government: even if fund returns are low, government ensures the minimum pension benefit.
• Contributions are flexible and depend on your age at entry and the pension amount you pick. Younger joiners pay smaller monthly amounts; older joiners pay more.
• You can choose auto-debit from your SBI savings bank account so contributions are handled automatically.
• The scheme is intended for people without high income (non–taxpayers) to widen pension coverage.
• In case of subscriber’s death, the pension continues for spouse. After both spouse and subscriber pass away, the nominee gets the pension corpus.

Who Is Eligible for APY via SBI

You must satisfy the following criteria:

• You must be an Indian citizen.
• Your age when joining should be between 18 and 40 years.
• You should hold a savings bank account (or post-office savings account). For SBI APY this means a valid SBI bank account.
• You should be a non–taxpayer (or should not have been an income taxpayer) as on the date of application this condition was introduced from 1 October 2022.
• You must complete periodical contributions till age 60 to avail pension.

How to Apply for Atal Pension Yojana Through SBI (Online)

You can apply through SBI online (internet banking) if you have an active SBI savings account and net-banking enabled.

Here’s the step-by-step process:

1. Log in to your SBI Internet Banking account.
2. Go to the “e-Services” tab, then select “Social Security Schemes”.
3. Select “Atal Pension Yojana (APY)” from the list and choose to apply.
4. Fill in details such as Aadhaar number, account number, date of birth, contact details, nominee details, and pension amount you prefer (1,000 to 5,000).
5. After submission, a Permanent Retirement Account Number (PRAN) will be allotted to you for tracking contributions.
6. Setup auto-debit so that monthly contributions are deducted automatically from your linked SBI savings account.

Alternatively, even if you don’t have net banking, you can visit your nearest SBI branch, fill the APY form, submit KYC and Aadhaar details, and activate APY.

Benefits of Choosing APY Through SBI

• Guaranteed pension: Once you turn 60, you receive steady pension between ₹1,000 to ₹5,000 monthly a reliable income post retirement.
• Minimal & flexible contributions: Contributions are small when you are young and increase based on age and chosen pension amount doable for low/middle income individuals.
• Convenience with SBI: Online application, auto-debit contributions, pension credit to same account makes the entire journey smooth.
• Protection for family: If the subscriber passes away, pension continues for spouse, and corpus goes to nominee after spouse  helps ensure family’s financial security.
• Backed by Government Guarantee: Even if markets underperform, government ensures minimum pension which reduces risk.
• Tax benefits: Contributions to APY qualify for deduction under tax laws.

What to Know: Limitations & Important Points

• You must contribute regularly till age 60. If contributions stop for long periods, account may become dormant.
• Early exit or withdrawal is generally not allowed  APY is meant to give pension only after age 60, except in exceptional hardship or death/serious illness.
• From 1 October 2022, income-tax payers (current or past) are ineligible for new APY enrolments.
• Pension amount chosen at start determines contributions and eventual benefit selecting too high pension may mean higher monthly contributions, especially if joining at older age.

Who Should Consider APY via SBI

APY via SBI is a good option if:

• You work in informal / unorganized sector and don’t have company pension or retirement plan.
• You have a modest income and want a small but guaranteed pension post-retirement.
• You want something simple, with minimal paperwork, auto-debit convenience, and minimal financial contribution now.
• You want to ensure your spouse/family gets a pension if something happens to you.