NPS vs APY Last Updated : 09 Aug 2020

Making investments for your retirement is a very important step to take. The government offers two pensions schemes, namely NPS and Atal Pension Yojana. One can pick the scheme based on their preferences and the benefits offered in the schemes.

Investing for your retirement is an important step. Making sure you have chosen the right pension option, which suits your requirement to lead a good retired life. With the pension plans offered by the Government of India, namely the National Pension Scheme and Atal Pension Yojana, ensure to provide you with financial security during your retired life.

Difference between NPS and APY?

Features NPS Atal Pension Yojana
The age of joining NPS has an entry age of a minimum of 18 years while the maximum is 55 years. Atal Pension Yojana has the entry age 18 years and the maximum age being only 40 years.
Who can take the plan NPS allows investors who are citizens of India as well as NRIs to invest in the scheme. Atal Pension Yojana states that only a resident of India can invest in this plan
Pension particulars While the NPS doesn’t guarantee a pension post retirement. Atal Pension Yojana provides you with a guaranteed pension after retirement.
Tax Benefit NPS provides investors of this scheme a tax rebate of up to Rs. 2 lakhs. The Atal Pension Yojana doesn’t provide the applicant with any tax benefits
Premature Withdrawal Only Tier 2 accounts will allow premature withdrawals. Under the Atal Pension Yojana you will not be allowed to withdraw the money invested prior to the term end. In case of the unfortunate demise of the investor, or the investor has a medical condition that withdrawal may be considered.
Type of account NPS provides investors the choice of 2 types of accounts, Tier 1 and Tier 2. Atal Pension Yojana, provides investors with just one account.
Investments NPS provides investors options in which he/she can choose to invest their money. Atal Pension Yojana does not give you the option of choosing the investment of your choice.
Government Contribution NPS does not provide government support, all contributions made will be done by the investor only. With the Atal Pension Yojana, the government does provide the investor some monetary support.

To help make you decision you can always check the websites for the Atal Pension Yojana and NPS to get any other information you require.

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