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APY Calculator

Your joining age

yrs

Desired monthly pension

Monthly investment
Investment duration35 yrs
Total amount

The Atal Pension Yojana is a pension scheme that was introduced in the Union Budget of 2015 – 2016, and it targeted individuals who were employed in the unorganized sector. It is a scheme that is also open to the private sector and does not have a pension benefit. 

At 60, an individual employee can choose to obtain a pension of either Rs.1,000, 2,000, 4,000, or 5,000. This pension depends on their contribution to the scheme and the age at which they start the subscription to the scheme. This pension can further be claimed by the spouse upon the demise of the account holder. The collected funds of the Atal scheme are managed by the Pension Funds Regulatory Authority of India.

What is APY Calculator, and How Does it Help You?

The APY Calculator is a tool that allows you to determine the real interest received on investment in the pension scheme. The Atal Pension Yojana Calculator may be used to determine what is the amount of pension you want to receive, and the age at which you should apply for this scheme. Also, for your convenience, the calculator gives you an instant answer on how much interest you would have earned on the pension. The APY calculator can also help you avoid mistakes. As a result, this software is beneficial to employees in the public and private sector.

The APY Calculator can help you in the following ways:

– The final outcome estimation instantly.

– The right period of investment.

– For you to understand if the pension scheme aligns with your financial goals.

How Does the Atal Pension Yojana Return Calculator Work?

This APY calculator calculates APY based on two values: interest and compound frequency. You can compare a number of offers with different compounding periods by using the choices in the second box.

For instance, consider the following offers:

An annual interest rate of 1% is compounded, thus APY = 1%.

Interest rate of 0.75% compounded quarterly, APY = 0.702%

APY = 0.501 percent, interest rate of 0.5% compounded daily

All you have to know now is that the greater the APY value, the better the offer. Calculating APY reveals that the first of the illustrative offers pays the highest.

Here is the formula followed to calculate the Atal Pension Yojana:

APY = (1 + r/n)n – 1

where:

r – stands for the interest rate.

n – stands for the number of times the interest is compounded per year.

How to Use Groww Atal Pension Yojana Calculator 

This pension calculator depicts the approximate Pension and Lump Sum amount that an NPS subscriber may expect at maturity or at the age of 60 based on regular monthly contributions, a percentage of corpus reinvested for purchasing annuities, and assumed rates for returns on investment and annuity chosen.

In order to use the calculator, you need to follow the steps mentioned below:

Step 1: Choose your age on the calculator.

Step 2: Choose the amount you would require as a pensioner.

After choosing all of these necessary criteria, the calculator will instantly show you the calculated result of the monthly investment, duration of the investment and total investment amount.

Advantages of Using the Calculator Atal Pension Yojana

The Atal Pension Yojana (APY) was developed with the intention of focusing on all citizens of India, particularly those in the unorganized sector who do not have any official pension coverage. This plan encourages these employees to save for their retirement. Here are some of the advantages of using the APY Calculator:

– It provides you help in determining how the outcome may be effective to you and your financial goal.

– It is an instant source to know the outcome of your investment.

– You can customize data based on your preferences.

– You can find estimates instantly without needing to seek assistance.

FAQ

Q1. Will I have to pay any fees to use the calculator?

No, APY calculators are free to use, and you will not be charged to use the tool.

Q2. How can I set up an APY account?

You may start an APY account by going to the branch of the bank where you have a bank account and asking for an APY application form. Fill out the form and send it in with the required papers. To create an APY account, make sure you have a minimum amount in your account. If you fulfill the requirements, an APY account will be established in your name.

Q3. What happens if I don’t keep the minimum amount in my bank account?

If you do not have a minimum amount in your bank account, your APY account will be frozen after 6 months, deactivated after a year, and terminated after 2 years.

Q4. I am a participant in the National Pension Scheme (NPS). Is it possible for me to open an APY account?

To open an APY account, you must not be a member of the NPS or any other comparable Social Security Scheme. You should not be paying income tax in order to get the benefits of APY.

Q5. What is the distinction between an APY and an interest rate?

The interest rate is the amount that your investment will grow by over time, such as a week, month, or year. This rise may also be weighed against past growth in your investment, although this may vary. APY is similar in that it is also how much your money will grow over time, but it is the most precise metric because it is calculated over a year and takes compounding into consideration.

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