WHAT IS SSPN?Skim Simpanan Pendidikan Nasional (or SSPN) is the National Education Savings Scheme. It is a saving scheme by the National Higher Education Fund Corporation (Perbadanan Tabung Pendidikan Tinggi Nasional or PTPTN). It's a savings account for those who wish to save money for their tertiary education. To make it short and simple,
PTPTN = LoanAccording to their official website, from 1st January 2012 onwards, all students who wish to apply for PTPTN loans MUST(WAJIB) have an SSPN account with a minimum savings of RM20.00
SSPN = Savings
WHO CAN HAVE AN SSPN ACCOUNT?SSPN is open to ALL MALAYSIANS. There are generally 3 groups of classifications.
Group 1: Parents or Guardians or other Malaysian citizens to any Malaysian citizen aged 18 and under and can keep the account open up to 28 years of age.
Group 2: Malaysians above the age of 18 having the choice to open their own accounts or by their parents or guardians.
Group 3: Malaysians above the age of 29 must open their own account.
WHAT DIFFERENCE IS SSPN FROM NORMAL BANKS?Income Tax Relief subject to net savings during that particular year. This only applies to
a) PARENTS or LEGAL GUARDIANS who opens the account for the benefit of their child to the maximum of
b) PARENTS with SEPARATE TAXATION that opens SEPARATE ACCOUNTS for the SAME child are given SEPARATE tax relief to the maximum of RM3,000.00 to each parent.
c) PARENTS with JOINED TAXATION that opens SEPARATE ACCOUNTS for the SAME child to the maximum of RM3,000.00
Individuals who open their own SSPN account is NOT ELIGIBLE.
Higher annual dividends. SSPN's annual dividend for year 2009 is 2.5% while banks interest was at a maximum of 1.56%. I don't know where they got their data but lets take their words for it for the time being. I checked with a relative of mine who happens to have an SSPN account and according to him for year 2010 the dividend rate was a mere 0.9%. Yup... not even 1%
Insurance coverage. This applies to depositors between the ages of 18-65 years old, beneficiaries between the ages of 1 day old - 28 years old AND with a minimum balance in the SSPN account of RM1000.00 at any one time.It is however not mentioned if this applies when the beneficiary and depositor is of the same person. The premium will be borne by PTPN. Insurance in a form of Ringgit to Ringgit coverage for beneficiaries who live with their parents / legal guardians and SSPN accounts is opened by their parents / legal guardians and RM100,000.00 whereby the beneficiary is an orphan living in an orphanage and an SSPN account opened by the principals or management representative of the orphanage. Charities (Khairat) or death compensation of RM2,000.00 to depositors and RM500.00 to beneficiary.
Matching Grant. This is a financial incentive depositors (parents or legal guardians) whom family's monthly income (salary) does not exceed RM2,000 per month. Total matching grant (not exceeding RM10,000) will be determined after taking into account the SSPN and savings deposits. Matching Grant rates will be greater if they have a higher savings and a longer saving period.
HOW DO I OPEN AN SSPN ACCOUNT?You can open an account at the PTPTN service counter at One Stop Center in KL Sentral OR at the following banks :-
- Bank Simpanan Nasional,
- CIMB Bank,
- Agro Bank,
- Bank Rakyat,
- Bank Islam or
- 3 copies of Account Opening Application Form (Borang Permohonan Pembukaan Akaun) which can be obtained online (click here to download) OR can be obtained FREE at One Stop Center or Banks listed above.
- Duplicate copy of the depositor's MyKad, military ID or Police ID
- Duplicate copy of the beneficiary's birth certificate or MyKid or MyKad
- Duplicate copy of certificate of adoption (only for legal guardians)
|SSPN Sample form (front side)|
|SSPN Sample form (back side)|
|Translated version of SSPN form|
HOW DO I DEPOSIT MORE MONEY INTO MY SSPN ACCOUNT?Go to any of the 6 bank branches listed above and obtain the SSPN deposit slip which looks something like this.
|SSPN Deposit Slip (front side)|
|SSPN Deposit Slip (back side)|
|How to fill in SSPN account number for the first time|
JANUARY 2013 UPDATE
Based on the Bajet 2013, the maximum tax relief for SSPN has been increased to MYR6000.00 HOWEVER this tax relief only applies to Group 1 (Parents or Guardians or other Malaysian citizens to any Malaysian citizen aged 18 and under and can keep the account open up to 28 years of age.) For details please click this link (opens a new window)