National Education Savings Scheme (SSPN-i)

Skim Simpanan Pendidikan Nasional (SSPN-i) or National Education Savings Scheme is a savings scheme from Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) or National Higher Education Fund Corporation. I think it represents a good alternative investment vehicle in Malaysia.

Benefits of SSPN-i

I will list down its benefits in descending order of my perceived importance.

1. Tax relief of up to RM 8,000

The tax relief is only for parents who deposit the money for their children. The parents can claim up to RM 8,000 for each child. If they opt for separate assessment, the relief is up to RM 8,000 per parent. This tax relief is not claimable if the account is not for own child. This relief is available till 2024.

2. The deposit is guaranteed by the government of Malaysia

Since the deposit is guaranteed, there is no risk of losing the money in the account.

3. Free takaful insurance with deposit of at least RM 1,000

The coverage is the amount matching the account balance, up to RM 100,000 for death. There is also funeral expenses of RM 2,000 for account holder (18 – 65 years old) and RM 500 for beneficiary (1 day to 28 years old).

The coverage for total permanent disability is up to RM 1 million, depending on account balance.

Dividend history

Its dividend rate is around 4% per annum. From 2004 to 2019, the minimum dividend rate was 2.5% in 2009 and the highest was 4.25% in 2012, 2013, and 2014.

As we can see, its return is better than fixed deposits. It is also similar to the returns of ASNB fixed price funds in recent years.


I think SSPN-i is good for its tax relief. Besides that, the dividend rate is higher than most low-risk investment vehicles. Furthermore, there is no restriction on deposit and withdrawal. Deposit and withdrawal can be performed online too.

To open an account, you can click on this link and select “Pembukaan Akaun“.

PTPTN also has another scheme known as SSPN-i Plus. This scheme is more like an insurance plan, in addition to the savings feature of SSPN-i. Personally, I think that if you already have life insurance protection, perhaps you do not need a SSPN-i Plus account.


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