Recently, I have opened a Simpan SSPN Prime account for my child. I did this entirely online. The process was not that hard and I would like to share the process in this article.
Documents required
Actually, no document is required to be uploaded. This is why I said the process is easy.
Simpan SSPN Prime account opening
The first step is to go to the registration page (Link). Fill in all the details required. The depositor should be you and the beneficiary is your child. You have to remember the postcode that you fill in as you will use it later.
The next step is the payment. The minimum deposit is RM 20. This process is completed after the payment.
Checking the account
After the registration, wait for an email from SSPN (webmaster@ptptn.gov.my). This email is very short. I was surprised by its brevity at first. Click the link in the email to set your password. You have to use the same email and postcode during registration.
To log in, you can go to this page (Link). Use your own identification card (IC) number and the password that you set earlier. You can do a few transactions on this page. You can withdraw the fund, subscribe to regular savings plan, print your statement, and deposit more money.
To check the latest balance, click on either the account number, IC number or name of the beneficiary.
Besides that, you can change your password on this page too.
Conclusion: A tax saving instrument
The whole process took me about ten minutes. Overall, it is not complicated as it does not involve upload of documents. If you would like to open a Simpan SSPN Prime account, I would recommend using this online method, instead of going to a PTPTN branch or its agents.
I opened this account primarily for tax relief purpose. Furthermore, its dividend rate is not bad. Its most recent rate is 3%, which is better than fixed deposit. The maximum tax relief allowed is RM 8,000 per year (all accounts inclusive). I would not deposit until this maximum amount as I also have other investments. It is up to you to decide how much you want to deposit per year. But remember that the tax relief is computed by subtracting the withdrawal amount from the deposit amount each year. This tax relief is available till year 2024.
