Simpan SSPN makes education savings a breeze

The scheme offers depositors numerous perks, including income tax relief of up to RM8,000 and free takaful coverage.

PTPTN, which has branch offices nationwide, also facilitates online account openings via the myPTPTN app.

PETALING JAYA:

 For many parents, the dream of seeing their children enter university is often accompanied by worries about the rising cost of education.

One of the most practical ways to ease future financial burdens is to start saving early.

Siti Kamariah Ghazali.

Administrative and diplomatic officer Siti Kamariah Ghazali is among thousands of parents who have taken this approach.

The 48-year-old took the initiative to open an account with the National Education Savings Scheme (Simpan SSPN) a decade ago and contributed consistently every month.

Siti Kamariah hopes that her 11-year-old son will not have to worry about tuition fees when pursuing higher education and, more importantly, can start his career debt-free.

She said the scheme not only helps parents plan long-term finances but also offers additional benefits such as income tax relief of up to RM8,000 per year.

An officer at the agriculture and food security ministry said she was particularly attracted to the takaful coverage provided under Simpan SSPN, which could be a lifesaver in the event of unforeseen circumstances.

“I encourage parents to save with Simpan SSPN because it offers so many benefits,” she said.

Depositor-friendly options

The National Higher Education Fund Corporation (PTPTN) offers two savings schemes: Simpan SSPN Prime and Simpan SSPN Plus. Both are depositor-friendly and can be opened with a minimum contribution of RM20 to RM30.

Simpan SSPN Prime offers free takaful protection on a ringgit-for-ringgit basis for depositors with savings of RM1,000 and above in the event of death or permanent total disability.

Other benefits include income tax relief on savings up to RM8,000 per year, a matching grant of up to RM10,000 per eligible family, competitive dividends, shariah compliance, and government-guaranteed savings.

The government has extended the tax relief for another three years, which is expected to encourage more parents to start saving with Simpan SSPN as soon as their child is born.

In terms of dividends, the scheme recorded its highest rate in 10 years last year at 4.05%, surpassing the 3.6% recorded two years earlier.

Simpan SSPN Plus offers six packages ranging from RM30 per month (Intan Package) to RM500 per month (Berlian Package), with additional benefits such as takaful coverage of up to RM1.2 million, death benefits for depositors, spouses, and up to five children, critical illness coverage, hospital admission allowances, and coverage up to age 69, depending on the selected package and takaful operator.

Through Simpan SSPN, parents who set long-term savings goals and follow a consistent plan can maximise financial benefits and income tax relief.

Three easy steps

In addition to having branch offices nationwide, PTPTN facilitates online account openings via the myPTPTN app, which is faster, easier and more secure, leveraging today’s technological advancements.

Cabutan WOW! Simpan SSPN 2025 draw’

Those who open a Simpan SSPN account between Jan 1 to Dec 31 will stand a chance to be one of 550 winners in the “Cabutan WOW! Simpan SSPN 2025 Draw” which offers prizes totalling over RM1.5 million.

Visit the PTPTN website at https://www.ptptn.gov.my/ or download the myPTPTN app on the App Store, AppGallery or Google Play. - FMT