SSPN-i vs SSPN-i Plus: Which Education Savings Account Is Worth Opening?

SSPN-i (now branded Simpan SSPN Prime) is the straightforward, no-commitment education savings account run by PTPTN. SSPN-i Plus (now Simpan SSPN Plus) is the version that bundles takaful insurance coverage but requires a fixed monthly contribution. For most Malaysian parents, the choice comes down to one question: do you want flexibility or insurance protection alongside your tax relief?

This guide uses the current names throughout but refers to the older SSPN-i and SSPN-i Plus labels where they appear on official documents and commonly in search.

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What Both Accounts Share

Before comparing them, it helps to understand what they have in common.

Both accounts are operated by PTPTN, are Shariah-compliant, and both qualify for the same income tax relief. The Government extended this relief through the year of assessment (YA) 2025 to 2027, allowing biological parents, adoptive parents, or legal guardians to claim up to RM8,000 per year on net savings deposited into either account (PTPTN, 2025). “Net savings” means deposits minus withdrawals in the same assessment year, excluding any withdrawals made for education purposes.

Both accounts also earn the same dividend. For 2023, PTPTN declared a dividend rate of 3.60% on Simpan SSPN balances. Dividend rates are announced annually and are not guaranteed.

Savings in both accounts are protected under the government-backed PTPTN fund. They are not covered by PIDM deposit insurance, since PIDM covers licensed banks, not government savings schemes.

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SSPN-i (Simpan SSPN Prime): Flexible, No Commitment

Simpan SSPN Prime is the basic account. It requires a minimum of RM20 to open and imposes no monthly savings commitment. You deposit whenever you like, in any amount above the minimum top-up.

PTPTN pays the takaful contribution on your behalf under this account. The coverage is a simple “ringgit-for-ringgit” arrangement tied to the account balance, not a standalone takaful policy. This means the parent or guardian does not receive a separate takaful certificate, and the benefit is limited compared to SSPN-i Plus.

Best for: Parents who want maximum flexibility, have irregular income (freelancers, self-employed), or simply want to keep their savings plan simple while still claiming the tax relief.

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SSPN-i Plus (Simpan SSPN Plus): Structured, With Takaful

Simpan SSPN Plus is a collaboration between PTPTN and licensed takaful operators, currently including Hong Leong MSIG Takaful Berhad, Great Eastern Takaful Berhad, Takaful IKHLAS Family Berhad, Zurich Takaful Malaysia Berhad, and Etiqa Family Takaful Berhad (PTPTN, 2025).

You choose a package with a fixed monthly contribution, ranging from RM30 to RM500 per month, paid by salary deduction, auto-debit, or direct debit. A minimum balance of RM1,000 must be maintained in the account.

The takaful coverage under this account is substantially richer. Depending on the package and operator chosen, benefits can include:

• Death or total permanent disability coverage up to RM1.2 million
• Terminal illness benefit up to RM200,000
• Funeral arrangement benefit up to RM10,000
• Outpatient treatment for accidents up to RM3,000
• Coverage for the depositor up to age 69

The takaful contribution you pay is eligible for an additional tax relief under the Life Insurance and EPF combined relief of up to RM7,000 per year (LHDN, YA 2025). This is a separate relief from the RM8,000 SSPN net savings relief, so both can be claimed simultaneously.

Best for: Parents who can commit to a fixed monthly amount, want meaningful life or disability protection for the family, and aim to maximise two separate tax relief lines in a single product.

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Side-by-Side Comparison

Feature	SSPN-i (Simpan SSPN Prime)	SSPN-i Plus (Simpan SSPN Plus)
Minimum to open	RM20	RM1,000 balance required
Monthly commitment	None	RM30 to RM500/month (fixed)
Takaful coverage	Basic (PTPTN-funded, balance-linked)	Comprehensive (up to RM1.2m death/TPD)
Takaful provider	PTPTN	Choice of 5 licensed takaful operators
Dividend rate (2023)	3.60%	3.60%
Tax relief (YA 2025-2027)	Up to RM8,000 net savings	Up to RM8,000 net savings
Additional takaful relief	Not applicable	Up to RM7,000 (Life + EPF combined)
Shariah-compliant	Yes	Yes
Flexibility	High	Low (mandatory auto-debit)
PIDM protection	No	No

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The Tax Relief Maths

The RM8,000 SSPN relief is claimed by one parent under a separate assessment. Under joint assessment, both parents may jointly claim the relief. The relief applies to net savings, so if you deposited RM10,000 and withdrew RM3,000 (for non-education reasons) in the same year, your claimable relief is RM7,000.

Importantly, withdrawals made to pay for education expenses are excluded from the net savings calculation. You do not lose your relief simply because the child started university and you drew down the account (PTPTN, 2025).

For SSPN-i Plus depositors who also pay takaful premiums, the takaful contributions can be stacked against the RM7,000 Life Insurance and EPF relief, potentially reducing taxable income on two separate fronts.

Example: a parent in the 13% tax bracket depositing RM8,000 net into SSPN in a year saves up to RM1,040 in tax. If their SSPN-i Plus takaful premium adds another RM1,800 in Life Insurance relief (above their EPF contributions), that is a further RM234 in tax saved, for a combined annual saving of RM1,274.

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Which One Should You Open?

Open SSPN-i (Simpan SSPN Prime) if:

• You have variable income or cannot commit to a fixed monthly debit
• You already have separate life or takaful coverage and do not need more
• You want the simplest possible structure to capture the RM8,000 tax relief
• You are starting small and want to build up at your own pace

Open SSPN-i Plus (Simpan SSPN Plus) if:

• You want to consolidate education savings and family protection in one product
• You can sustain the monthly auto-debit reliably
• You want to maximise two distinct tax relief categories simultaneously
• You are the primary breadwinner and lack adequate life or disability cover elsewhere

A third option exists for some families: open both accounts. The tax relief is capped at RM8,000 total across all SSPN accounts per depositor, so splitting contributions between accounts does not increase relief. However, having an SSPN-i Plus for the takaful benefit while also building a separate SSPN-i balance is permissible if your financial plan calls for it.

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Practical Notes Before You Sign Up

Rebranding: The SSPN-i name is still widely used in older LHDN forms and employer HR portals. Simpan SSPN Prime and Simpan SSPN Plus are the current official names on PTPTN’s portal as of 2025. Both are the same underlying accounts.

Beneficiary rules: The account is opened in the child’s name with the parent or guardian as the depositor. Tax relief is claimed by the depositor, not the beneficiary.

Withdrawal for education: You can withdraw to pay for accredited higher education in Malaysia or abroad. Approved institutions include public and private universities, polytechnics, and community colleges recognised by the Malaysian Qualifications Agency (MQA).

Auto-debit failure: Missing a monthly auto-debit on an SSPN-i Plus account can affect the takaful coverage. Check your chosen operator’s terms before enrolling, particularly if you have overseas travel plans that affect your local bank balance.

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Key Takeaways

• Both SSPN-i and SSPN-i Plus qualify for the same RM8,000 tax relief on net savings for YA 2025 to 2027.
• The 2023 dividend rate was 3.60% for all Simpan SSPN accounts.
• SSPN-i (Simpan SSPN Prime) is flexible with no monthly commitment and basic takaful funded by PTPTN.
• SSPN-i Plus (Simpan SSPN Plus) requires a fixed monthly contribution of RM30 to RM500 and provides takaful coverage up to RM1.2 million.
• SSPN-i Plus depositors can claim a second tax relief on takaful premiums under the RM7,000 Life Insurance and EPF combined relief.
• Neither account is covered by PIDM; both are backed by the government-linked PTPTN fund.
• The right choice depends on your need for flexibility versus your need for life protection.

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Frequently Asked Questions

Can both parents claim SSPN tax relief in the same year? Under separate assessment, only one parent may claim the relief for a given child’s SSPN account. Under joint assessment, both parents can combine their claims. In the event of divorce, both parents are eligible to claim independently, subject to the RM8,000 annual cap per person (PTPTN, 2025).

Is the SSPN tax relief for 2025 confirmed? Yes. The Government announced an extension of the individual income tax relief of up to RM8,000 for net SSPN savings, effective for YA 2025 to 2027. This was part of Budget 2025 incentives (PTPTN, 2025).

Does withdrawing money for university fees reduce my tax relief? No. Education-purpose withdrawals are excluded from the net savings calculation for tax relief purposes. Only non-education withdrawals reduce the claimable amount (PTPTN, 2025).

What happens to my SSPN-i Plus takaful if I miss a monthly payment? The takaful policy is underwritten by your chosen operator (for example, Great Eastern Takaful or HLMT). Missing payments may lapse coverage depending on that operator’s terms. Contact PTPTN or your takaful provider before signing up to understand the grace period and reinstatement rules.

Is SSPN a good investment compared to unit trusts or ASB? SSPN is not primarily an investment vehicle; it is an education savings scheme with a tax relief incentive and a modest dividend. For families who pay income tax, the RM8,000 relief alone makes it highly attractive as a tax-planning tool on top of the dividend. For broader investing goals, read our guide on investing basics in Malaysia or explore ASB and ASNB unit trusts as complementary vehicles.