Both Atal Pension Yojana (APY) and New Pension Yojana (NPY) offer post retirement financial security. However, there are some differences between both the plans which one needs to understand to make a smart investment. Let’s look at them:
|Parameters||New Pension Scheme||Atal Pension Yojana|
|Age of Joining||18-60 years||18-40 years|
|Who can join?||All Indian citizens (both resident or non-resident)||Only resident Indians|
|Pension slabs||No fixed slab||5 slabs - Rs 1000; Rs 2000; Rs 3000; Rs 4000; and Rs 5000 per month|
|Types of Accounts||Holder has two accounts: Tier 1 and Tier 2||No differentiation|
|Premature Withdrawal||In tier 2 account, there is no restriction and money can be withdrawn at any time. However in tier 1, premature withdrawal is allowed up to certain conditions||No premature withdrawal, except in death or critical illness|
|Government Contribution||No contribution||The govt. contributes maximum Rs 1000 if the account is opened before 31st December.|
|Tax Benefit||Tax benefit is available only in Tier 1 account||No tax benefit|
|Who manages it?||It is managed by PFRDA||It is administrated by the PFRDA/Government|
|Permanent Account Number||The account holder gets the unique Permanent Retirement Account Number (PRAN), which can be used to manage NPS around the world||No such facility is available|
|Where to open an account?||An account can be opened at Point of Presence (POP) branch. You can also open it online through providers such as ICICI Direct.||Approach the bank where you have a saving account|
||No option to choose fund manager|
|Nomination Facility||Although nomination is not mandatory but you can nominate maximum 3 members||Nomination is mandatory|
|Toll free number||1-800-222080||1800-180-1111 / 1800-110-001 1800-180-1111 / 1800-110-001|
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