PTPTN SSPN Skim Simpanan Pendidikan Nasional

The best thing which i can afford right now is to deposit into SSPN for my baby. SSPN is a scheme offered by PTPTN to save money for children education.

Let me highlight some of the benefits by opening a SSPN account,

• Tax relief on savings up until RM3,000 per year;
• Free insurance coverage up until RM50,000 for depositors who have an accumulated deposit of a minimum of RM1,000 ;
• Matching grant with a maximum endowment of RM10,000 per family ;

That means if i am in the 7% bracket income tax and deposited max of RM 3000 for her, i can claim back RM 210.

Savings in SSPN will give 4% pa. So, 7%+4% is 12% pa on the RM 3000. Which insurance company can give that performance? And the risk is almost 0 since it is gov backed scheme. Even if the gov collapse, it wont be affected.

So, what if if i am in a higher income tax bracket? Let say 13%? Then the total would be 17% return!!. Wah Lau eh!! Where to get? Not only it is good for baby, it also good for me. If i have another baby, my wife can be the other depositor, then both of us also can claim. WIN-WIN.

Yeah Baby!