PTPTN

What is SSPN1M-i For PTPTN and How to Apply?

What is SSPN1M?

SSPN1M (Skim Simpanan Pendidikan Nasional 1Malaysia) is the 1st Malaysia National Education Savings Scheme which was rebranded from the PTPTN savings product.

SSPN1M consists of SSPN1M-i formerly known as SSPN-i and SSPN1M-i Plus or formerly known as SSPN-i Plus.
Despite these branding, product features are still the same and remain relevant for the education of children.

What is SSPN1M-i?

The 1Malaysia National Education Savings Scheme (SSPN1M-i) is a scheme or savings instrument specially designed by the National Higher Education Fund Corporation (PTPTN) for higher education purposes. The scheme offered is Shariah-compliant which uses the concept of ” Wakalah Bil Istithmar ” whereby depositors appoint PTPTN to manage their deposits for investment purposes.

Beginning January 1, 2012, students wishing to apply for education loans to finance their studies at Polytechnic, IPTA or IPTS are required to have SSPN1M-i accounts with minimal savings as determined by PTPTN.

Opening accounts are encouraged to be made through Maybank, Bank Islam, Agrobank , Bank Rakyat and RHB Bank to speed up the process.

What is the objective of SSPN1M-i?

The objective of SSPN1M-i is to cultivate the habits of saving Malaysians for higher education purposes and to reduce dependency on loans.

What is the SSPN1M-i privilege?

SSPN1M-i offers a variety of benefits, including:

Release of income tax assessment on current year net savings of up to RM6,000.00 per year for accounts opened on behalf of children / adopted children as beneficiaries;

Free takaful coverage on depositors with savings of RM1,000.00 and above;

Competitive dividend rate and exempt from income tax;

Grant granting is appropriate for entering a higher education institution (IPT) up to RM10,000.00 for a family eligible for an account opened on behalf of the child as beneficiary;

Savings are guaranteed by the government;

Apply for PTPTN education loan;

Is the SSPN1-i account able to be opened by an unmarried person or parent who has no child dependent on IPT?

Yes. SSPN1-i accounts can be opened by any Malaysian citizen and 18 years old and above to foster a diligent attitude among Malaysians.

What are the terms of SSPN1M-i participation?

The terms of SSPN1M-i participation are as follows:

The parent / guardian / individual who wishes to be a depositor and / or beneficiary of SSPN1M-i account must be a Malaysian citizen.

For the opening of an account for adopted children under legal custody, a statutory declaration or certificate of adoption should be accompanied by the benefit of deducting the estimated income tax and matching grant to a higher education institution (if feasible).

Depositors can also open accounts for themselves.

Each depository can only open one account for the same beneficiary.

Beneficiaries must be between 1 day and up to the age of 29.

Beneficiaries who already have an account opened by a depositor may open accounts for themselves or open accounts for other Malaysian citizens. This means that a beneficiary at the same time can also be a depositor.

Different depositors may open SSPN1M-i accounts for the same beneficiaries and there is no limit on the number of accounts for each beneficiary.

How do I open a SSPN1M-i account?

SSPN1M-i accounts can be opened online by visiting the PTPTN website ( www.ptptn.gov.my ) at the PTPTN branch counter or via authorized agents who have been appointed.

What documents confirming the opening of SSPN1M-i accounts?

SSPN1M-i does not use account books. However PTPTN will send SSPN1M-i Account Opening Slip to the depositors to the registered address as proof of opening of SSPN1M-i account.

How to get the SSPN1M-i account number if the slip of the declaration has disappeared?

Depositor can contact Careline PTPTN at 03-2193 3000 or visit the nearest PTPTN branch to obtain SSPN1M-i account number. Depositor may also apply for reprint of the slip of the statement to facilitate the transaction.

Will depositors and beneficiaries be comprised of immediate family members?

No, depositors may open accounts and nominate any other Malaysian citizens as beneficiaries.

How can I make a savings by deducting my salary or ending my salary deductions?

Depositors must fill in and complete the SSPN1M Monthly Pay Permit / Termination Deduction Form that can be obtained at the PTPTN counter or print the form via PTPTN’s official portal. The completed form must be submitted to the employer and a copy to PTPTN.

How do I check my SSPN1M-i account statement?

The SSPN1M-i Account Statement can be reviewed and printed through PTPTN’s official portal. Checking can also be done by contacting Careline PTPTN at 03-2193 3000, present yourself to the nearest branch of PTPTN or Maybank branch, RHB Bank and Bank Rakyat.

When will the SSPN1M-i savings be released?

SSPN1M-i savings can be issued at any time, subject to the rules set by PTPTN from time to time.

How to remove SSPN1M-i savings?

The SSPN1M-i savings can be issued in the following ways:

Filling and completing the Equitable Grant Account / Claims / Closure Form and submit it to PTPTN via hand or post. The form is available at PTPTN counters; or

With ATM withdrawals at selected banks.

Is there any charge when issuing SSPN1M-i savings?

No charge imposed by PTPTN except the charges imposed by the agent, if any.

How long does the deposit / account closing process be processed if an application is made at PTPTN counter?

The withdrawal process of depositing / closing accounts takes no more than 14 working days after receipt of complete application documents.

Can SSPN1M-i savings be used to repay PTPTN education loans?

Depositor should apply for repayment of PTPTN loan through transfer of account by filling out the Transfer Form / Loan Repayment Overlift which can be found at PTPTN branch and PTPTN official portal.

Is SSPN1M-i savings automatically deducted if the borrower fails to repay PTPTN education loan within the specified period?

No. SSPN1M-i and Education Loan Scheme are different schemes although both are under PTPTN.

Is SSPN1M-i savings transferred to another SSPN1M account?

Yes. depositors need to fill out the Deposit Transfer Form / Loan Repayment Overlift which is available at PTPTN branch and PTPTN official portal. Transfers can be made based on the following situations:

Transfer of savings from SSPN1M-i account to SSPN1M-i account on the same depositors.

Transfer of savings from SSPN1M-i Plus account to SSPN1M-i account on the same depositors.

Transfer of savings from SSPN1M-i account to SSPN1M-i Plus account on the same depositors.

Transfer of excess repayment of loan to SSPN1M-i or SSPN1M-i Plus account of the same borrower / depositors.

Transfer of SSPN1M-i deposit for loan repayment on same borrower / depositors.

Should SSPN1-i accounts be closed if beneficiaries have reached the age of 29?

Yes, depositors need to close accounts on behalf of the beneficiaries. Depositors have the option either to receive savings when closing or making transfer funds to another beneficiary account.

Is there any benefit given to depositors who suffer from road accidents and paralysis of the whole body?

There is. SSPN1M-i provides free takaful protection to depositors with savings of RM1,000 and above and not more than 65 years old. This takaful coverage covers the death of depositors and beneficiaries and a permanent disability of the depositors. If the depositor is permanently incapacitated and has been confirmed by a medical officer, heirs may claim a takaful by completing the Takaful Claim Application Form which can be obtained at the PTPTN branch or at the official portal of PTPTN and include supporting documents as stated on the form. The completed documents must be submitted to PTPTN via hand or post.

What documents need to be filled in if the heirs of the depositors wish to claim takaful because the depositor has died?

The terms of takaful claim for deceased depositors shall be a balance of RM1,000 and above and not more than 65 years old on the date of death. The beneficiary shall fill in the Takaful Claim Application Form which can be obtained at the PTPTN branch or at PTPTN’s official portal and includes supporting documents as stated on the form. The completed documents must be submitted to PTPTN via hand or post.

How is the process of closing the SSPN1-i account for the deceased depositors?

For deceased depositors, heirs shall complete the following documents based on the amount of savings SSPN1M-i at the time of death:

Less than RM3,000

Form of Withdrawal / Closure of Account / Claim of Equitable Grant

Copy of depositor Mykad

Copy of MyKad heirs

Copy of depositor death certificate

Beneficiary Verification Form

Form of Indemnity Bonds and offsetting Revenue Stamp worth RM10

Copy of bank book / beneficiary account statement (private account only).

RM3,000 and above

Form of Withdrawal / Closure of Account / Claim of Equitable Grant

Copy of depositor Mykad

Copy of MyKad heirs

Copy of depositor death certificate

Authorized Letter of Administration / Probate Grant / Power of Attorney issued by the High Court of Malaya / Land and District Office / Amanah Raya Berhad / authorized authority.

Copy of bank book / beneficiary account statement (private account only).

Complete documents should be submitted to the PTPTN office via hand or post.

Who is eligible for the income tax deduction incentive?

Legally legitimate parent / guardian / guardian who holds the SSPN1-i account for the benefit of the child is given a deduction of income tax up to a maximum of RM6,000.00 per annum based on the amount of net current savings.

The eligibility categories are as follows:

Assessment Estimated : Income tax assessment is up to a maximum of RM6,000 per annum.
Joint Assessment : Release of estimated income tax up to a maximum of RM6,000 per year.
Individuals who hold for themselves are NOT ELIGIBLE to get income tax assessment deductions.

How to know the amount of income tax deduction incentive amount?

Income tax assessment incentives are granted based on the amount of net current savings, ie savings that have been deducted from withdrawal. Depositors may check or print SSPN1M-i account statements via e-SSPN1M-i at PTPTN’s official portal.

What is meant by matching grant incentives to enter IPT?

Matching grants entering IPTs are cash incentives in the form of cash offered to attract people, especially the low-income group, making savings for children’s higher education goals. Grant matching grant is aimed at assisting the needs of children (beneficiaries) who successfully pursue higher education.

What are the qualification requirements of this matching grant?

The grant of matching grant is subject to the following conditions:

The monthly family income (basic salary) of the depositor does not exceed RM4,000 upon application being made.

Beneficiaries have checked into any HEIs and certified courses by the government at certificate level and above.

Beneficiaries have not reached the age of 29 during the application.

The total amount of the corresponding grant to be given to each eligible depositary is not more than RM10,000 per family.

The grant entitlement equivalent is only to the depositor (parent / guardian) who opened the account for his or her own child or legal guardian. Depositors who open accounts for themselves or any other person are not eligible to apply for this matching grant.

How is the claim method and what documents are required to apply for this matching grant?

The depositor shall fill in the Withdrawal Form / Closure of Account / Claim of the matching Grant and submit together with the following documents:

* Confirmation of income / copy of salary slip / copy of pension statement / copy of retiree card stating monthly pension depositors and spouse.

Copy of MyKad partner / death certificate / divorce certificate.

Copy of birth certificate / statutory declaration / adoption certificate.

* Copy of offer letter checking to IPT and signup payment receipt to IPT.

* Active verification letter from the appropriate IPT / Agencies and should record course courses (if they do not meet item iv).

If beneficiaries get sponsored PTPTN education loans, iv and v documents are not required.

A copy of the depositor’s personal bank book (if you want to be credited to the account)

* documents i, iv and v need to be verified

When can a matching grant application be made?

A matching grant application can be made at any time during the beneficiary’s duration provided the SSPN1M-i account during application is active and the age of the beneficiary has not reached 29 years during the application. Claims matching grants after account closure are not allowed.

If the matching grant claims are made within less than one year from the date of opening the account, do the depositors be eligible to be considered for granting a matching grant?

Yes, grant of RM100 worth of tokens will be given as encouragement and appreciation for saving in SSPN1-i.

Facebook Comments

One thought on “What is SSPN1M-i For PTPTN and How to Apply?

  1. Wonderful site. Plenty of useful info here. I’m sending it to several friends ans also sharing in delicious. And of course, thanks for your effort!

Leave a Reply

Your email address will not be published. Required fields are marked *