PARENTS who choose the National Education Savings Scheme (SSPN) SSPN-i or SSPN-i Plus are investing in their children’s future, as both products are syariah-compliant savings plans for the financial planning of their children’s higher education.
Those who save with SSPN-i will enjoy tax relief of up to RM8,000 for two years until 2022, a competitive dividend rate that is excluded from income tax, free takaful protection for Ringgit-to-Ringgit deposits of RM1,000 and above, as well as a matching grant of up to RM10,000 for an eligible family with household income not exceeding RM4,000. In addition, they will be eligible to apply for PTPTN loans.
For the SSPN-i Plus, on the other hand, parents can enjoy the same benefits as SSPN-i with a package as low as RM30 or RM1 a day - with the savings guaranteed by the government - but without the matching grant and free takaful Ringgit-to-Ringgit protection. That said, they will enjoy other additional benefits.
With this product, parents or legal guardians can benefit from takaful protection up to RM1mil in case of death or permanent disability, death benefits for depositors including spouses and up to three children.
They will also be excluded from health examinations for those seeking to join the Intan, Delima, Topas, Zamrud and Nilam packages, unless they wish to join the Berlian package, which will require them to answer three health questions.
According to PTPTN, the advantages offered to depositors is meant to encourage parents to save for their children’s education and reduce the reliance on PTPTN loans. Key among these benefits are the tax reliefs, of which there are two eligible categories: RM8,000 maximum for each husband and wife depositor who individually does their tax by opening up separate accounts for the same child, or RM8,000 maximum for a couple.
Parents who save in SSPN-i Plus will receive tax relief of up to RM11,000, which is broken down to up to RM8,000 for net savings in the account and up to RM3,000 for takaful contributions. For depositors who choose the pension scheme, they will enjoy tax relief of up to RM15,000, where up to RM8,000 is for net savings in the account and up to RM7,000 for takaful contributions.
The condition for eligibility of these tax reliefs for SSPN-i and SSPN-i Plus are calculated based on the total net savings in the account for the current year. Net savings for the current year are the total savings after deduction of withdrawals made in the same year.
For instance, depositors with a previous year account balance of RM5,500 and have net savings of RM500 for the current year will only get the tax relief incentive of as much as RM500 only for the year of assessment.
Depositors can check or print the SSPN account summary statement at PTPTN’s official website at www.ptptn.gov.my, where the amount stated in the statement is the eligible amount for the year of assessment.
Starting 2018, PTPTN has worked together with the Inland Revenue Board, where information on the net savings has been inserted into the e-filling for the convenience of depositors who are also tax payers.
Beyond those benefits, SSPN-i Plus depositors are also eligible to participate in the Cabutan WOW! under two categories, which are the annual draw and monthly draws.
The aim of the Cabutan WOW! SSPN-i Plus 2020, launched on July 14 with a total of RM1mil cash prize and a Mercedes Benz C200 as the main prize, is to encourage the public to save in SSPN-i Plus, in addition to showing appreciation to committed depositors who make consistent savings deposits and plan for their children’s future education.
It is still not too late, as those who open new accounts or increase their deposits in SSPN i-Plus accounts are eligible to participate in the monthly draws for November and December, as well as the yearly draw.
To boost excitement for the year-end campaign, PTPTN has also introduced the national Cabutan Pecutan Akhir Tahun, which started on Nov 19 and will end on Dec 31, offering prizes such as a television, tablets and air fryers. The special year-end draw is open to all SSPN-i and SSPN-i Plus depositors with RM200 net savings, which means that depositors have a chance to win more in addition to the Cabutan WOW! SSPN-i Plus and while enjoying the tax relief for 2020.
For further information, visit www.lovesspn.com.
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