Simpan SSPN Prime as Emergency Fund: Is It Suitable?

I am considering to use Simpan SSPN Prime to keep part of my emergency fund. The question is whether the withdrawal is swift to serve as emergency fund. So, I performed a withdrawal to try it out.

Rationale

Why do I want to use Simpan SSPN Prime when there are quite some alternatives (Versa Cash and ASNB fixerd price funds)? It is due to its tax relief benefit. As my tax payable is getting higher, I am looking for ways to reduce it. With up to RM 8,000 tax relief, it will significantly reduce the income tax.

The timeline

I performed a withdrawal on 25 November 2022 (Friday) at 2.16 pm. I received an email from PTPTN and it states that the money will be credited into my account within 14 working days.

However, I received another email from Bank Islam eBanker Pro informing me that PTPTN has made a fund transfer to my bank account on 29 November (Tuesday) at 6.11 pm.

I received the money on 30 November (Wednesday) before 11 am.

Feasibility of Simpan SSPN Prime as emergency fund

When I received the email from PTPTN, I thought it is end of story. Emergency fund is meant to be used on short notice. If I receive the money after a few days, the emergency is already not an emergency. However, I received the money within three working days (five days after my withdrawal request).

The email from Bank Islam eBanker Pro mentions the time needed to receive fund. If your bank account is with Bank Islam, it is immediate. For other banks, it is according to the time of transaction. I will outline it below.

On business days:

• Before 5 am: Same day by 11 am

• 5.01 am – 8 am: Same day by 2 pm

• 8.01 am – 11 am: Same day by 5 pm

• 11.01 am – 2 pm: Same day by 8 pm

• 2.01 pm – 5 pm: Same day by 11 pm

• After 5 pm: Next working day by 11 am

On non business day:

• Next working day by 11 am

Thus, it seems like it is possible to receive the money on the same day, provided that PTPTN makes the transfer request. I decided to try again to see if I could get a same day transfer.

Second attempt

I made a transfer on 7 December (Wednesday) at 7.11 am. However, PTPTN only initiated the transfer on 9 December (Friday). I received the email from Bank Islam eBanker Pro stating the transaction time was 6.13 pm. I received the money on 12 December (Monday) before 11 am, a total of four working days (six days after my withdrawal request).

Too slow

Based on my two trials, I estimate that PTPTN takes at least two working days to process the withdrawal. After that, the transfer request will be made after office hour. Thus, we will only receive the money on the next day. It requires a minimum of three working days to have the money on hand.

I feel that the withdrawal process is too slow to make use of Simpan SSPN Prime as emergency fund. Thus, I would not use it to save my emergency fund. Nonetheless, it will still be used as a tax saving vehicle (valid till year 2024).

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