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What is SSPN?

SSPN (Skim Simpanan Pendidikan Nasional), or the National Education Savings Scheme, is an initiative by Malaysia's National Higher Education Fund Corporation (PTPTN) to encourage parents to save for their children's education and reduce reliance on PTPTN loans. It has two main options:

  1. 1. SSPN Prime (formerly SSPN-i)

    • A basic savings scheme offering interest and tax relief.

    • Annual dividends range from 3%-4%.

    • Free Islamic insurance for deposits of RM1,000 or more.

    • Up to RM8,000 in personal income tax relief.

  2. 2. SSPN Plus (formerly SSPN-i Plus)

    • Includes additional insurance features such as critical illness and hospitalization coverage.

    • Requires a minimum monthly deposit (from RM30 to RM500).

    • Offers up to RM11,000 in tax relief (including RM8,000 for savings and RM3,000 for insurance).

Key Differences Between SSPN Prime and SSPN Plus

  • Feature

    SSPN Prime

    SSPN Plus

    Monthly deposit requirement

    None

    Yes, minimum RM30

    Savings + insurance combo

    No

    Yes

    Tax relief

    RM8,000

    RM11,000

    Free Islamic insurance

    For deposits RM1,000+

    Automatically included

    Death/Disability benefits

    Yes

    Yes (more comprehensive)

    Critical illness/hospitalization

    No

    Yes

SSPN Tax Relief

  • Maximum Relief: RM8,000 for SSPN Prime; RM11,000 for SSPN Plus.

  • Extended Period: Tax relief is available until the 2027 assessment year under Malaysia’s 2025 Budget.

  • Calculation Basis: Net deposit amount (year-end balance minus year-start balance plus other adjustments).

SSPN Dividends and Benefits

  • Dividends (2010-2023)

    1. Historical average annual dividend rates are between 3%-4%.

    2. Credited every February.

  • Main Advantages

    1. Tax Relief: Helps parents reduce their tax burden.

    2. Government Guarantee: Savings are fully backed by the Malaysian government.

    3. Low Entry Requirement: Open an account with as little as RM20.

    4. Insurance Coverage: Varies by plan, offering peace of mind.

  • Limitations

    1. Website can be complex to navigate.

    2. Withdrawal processing takes approximately 14 working days.

How to Open an SSPN Account

    1. Online: Via the SSPN website or MyPTPTN mobile app.

    2. Offline: At PTPTN branches or designated banks (e.g., Maybank, RHB, Bank Islam).

    For more details, visit the PTPTN official website.

For more detailed information, visit the PTPTN official website.