5 Benefits You Can Enjoy If You Save For Your Children's Education Before The End Of 2022

Income tax relief, comprehensive takaful coverage, and more!

Cover image via Patrick Boucher/Unsplash & PropertyGuru

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If you're a parent, chances are, you've given some thought about your children's future education

Saving up early helps you to better prepare for your children's future so they can have better financial control when they grow up and go to university. It also trains them to optimise their savings more efficiently so they'll be more financially independent and appreciate the value of money.

If you wanna make the most out of your children's savings plan, PTPTN is a great place to start.

It has the Skim Simpanan Pendidikan Nasional (Simpan SSPN), which consists of two savings accounts — Simpan SSPN Prime and Simpan SSPN Plus. But what is the difference between the two?

Technically, both Simpan SSPN Prime and Simpan SSPN Plus are directed towards one goal, which is to save up money for higher education, but there are some differences between the two:

Simpan SSPN Prime
- Minimum opening deposit of RM20 with no monthly commitment
- Deposits can be made at any time and with any amount
- Savings deposited into this account can be taken out at any time at any amount
- Free takaful coverage for depositors who have savings of RM1,000 and above
- Savings are guaranteed by the government
- Syariah-compliant saving
- Competitive dividends
- Matching grants of up to RM10,000 for eligible families

Simpan SSPN Plus
Simpan SSPN Plus offers the same benefits as Simpan SSPN Prime with some additional benefits such as takaful protection with three choices of takaful operating companies, which are; Hong Leong MSIG Takaful Berhad, Great Eastern Takaful, and Takaful Ikhlas Family Berhad.

- Deposit amount is based on selected package with monthly commitment, which can go as low as RM30 a month
- Takaful coverage of up to RM1.2 million subject to selected Takaful Operating Companies (SPT)
- Terminal illness benefits up to RM200,000
- Benefit of repatriation remains up to RM10,000
- Outpatient treatment claims due to accidents up to RM3,000
- Charitable death benefit to the depositor, spouse, and children of a maximum of five children  subject to selected Takaful Operating Companies (SPT)
- Critical illness takaful benefits
- Hospital admission allowance
- Takaful coverage until the depositor reaches 69 years old, after that it's subject to the Takaful Operating Companies (SPT)
- No health check except those opting for the Diamond package need to answer three health questions

Ready to start saving for your children's education before the end of 2022? Here are five benefits you can enjoy:

1. Income tax relief of up to RM8,000 per year. Woohoo!

Image via CIMB

'Cause who doesn't wanna save a little money from taxes, amirite? ;P

For accounts opened under your child's name, you'll be able to enjoy tax reliefs of up to RM8,000. Therefore, parents who use Simpan SSPN can save up for their kids, and also reduce the burden of taxes on their side too.

Moreover, non-government serving parents who open a Simpan SSPN Plus account can get additional tax relief of up to RM3,000, while government employees can get an additional tax relief of up to RM7,000 if they opted for a pension scheme.

A win-win!

2. Takaful coverage as high as RM1.2 million

And the best part is, you don't even have to undergo a strict medical checkup to qualify for this incentive. Yayyy!

At most, what you'll have to do is answer three questions about your health on the signup form. Keep in mind that for Simpan SSPN Prime account holders, the takaful coverage covers death and permanent and comprehensive disability, and you'll need at least RM1,000 saved up in your account. As for Simpan SSPN Plus account holders, the coverage depends on the package you chose.

3. Competitive dividends

According to Simpan SSPN, the dividends gained from saving in Simpan SSPN Prime and Simpan SSPN Plus are also exempted from taxes.

All accounts holders are eligible to receive the dividends during its distribution period, so long as they don't close their accounts before so.

4. Eligible families can also earn up to RM10,000 through matching grants

Image via Wise

PTPTN seeks to help B40 communities by providing free matching grants of up to RM10,000 to families that earn a total household income of RM4,000 and below.

These incentives were placed to encourage lower-income families to continue to save up even as low as RM20 monthly so they can become more financially independent.

5. Last but not least, depositors will also have the chance to participate in their year-end Cabutan WOW! 25 Tahun PTPTN campaign, yassss!

In addition to celebrating 25 years of PTPTN, this annual campaign seeks to give Simpan SSPN Prime and Simpan SSPN Plus depositors a chance to win some amazing prizes. Hehe, so fun!

Essentially, this campaign is divided into three categories, which are Cabutan Tahunan Jubli Perak, Cabutan Khas Babyku Simpan, and Cabutan Siri that have amazing prizes up to RM1 million to be won by 350 Simpan SSPN depositors. Wooooaah :O

Here's a look at all the prizes from each category:

Cabutan Tahunan Jubli Perak (1 January 2022 to 31 December 2022)

- First prize: Mercedes-Benz A250 AMG Line
- Second prize: RM100,000 cash prize
- Third prize: RM50,000 cash prize
- Consolation prize: Honda Dash 125 x22

Cabutan Khas Babyku Simpan (1 January 2022 to 31 December 2022)

- RM1,000 cash prize to be distributed among 250 winners

Cabutan Siri 3 (1 October 2022 to 31 December 2022)

- RM2,525 cash prize to be distributed among 25 winners

Getting excited? Hehe, hold on — first, let us tell you how to qualify for the prize draw.

Don't worry, senang je!

STEP 1: Sign up for an Simpan SSPN Prime or Simpan SSPN Plus account.

STEP 2: Place at least RM50 into your savings account to submit your entry.

Every RM50 you save in your account qualifies for one entry for Simpan SSPN Prime account holders, and two entries for Simpan SSPN Plus (takaful & savings) account holders, and there's no limit to how much you can draw for as long as the campaign is happening.

So, the more you save up, the higher your chance of winning! :D

Here's your chance to save up for your child's future, and win some exciting prizes at the same time.

Sign up for Simpan SSPN Prime and Simpan SSPN Plus at myPTPTN today!

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