KUALA LUMPUR
aryani@bh.com.my
IT is every parent’s dream to see their children further their studies after graduating from school. However, in realising the dream, financial circumstances should be considered as the cost to further studies is not cheap.
Although various loans are provided from the government and banking institutions, it is best for parents to avoid putting their children in debt.
It is best that parents start preparing early for their children’s education, and the the best way to do is is to start saving as soon as their child is born.
The practice of “little and often fills the purse” should be applied in ensuring the child’s journey to further higher education goes smoothly.
Apart from keeping the money safe, parents need to intelligently choose the best type of savings that provide attractive rates.
A product of the National Higher Education Fund Corporation (PTPTN), the 1Malaysia National Education Savings Scheme (SSPN1M), is the best product currently available in Malaysia.
PTPTN’s Marketing and Strategic Communications Department senior general manager Abdul Ghaffar Yusop said the product was formerly known as the National Education Savings Scheme (SSPN) which included SSPN-i/SSPN-i Plus and rebranded to SSPN1M which included SSPN1M-i or SSPN1M-i Plus.
“In the 2018 Budget, Prime Minister Datuk Seri Najib Razak announced an allocation for the Special Incentive Matching Grant of RM500 or GS500 when depositing in SSPN1M accounts.
“PTPTN allocates RM250 million to 500,000 depositors opening accounts for children from ages 7 to 12, through SSPN1M, SSPN1M-i or SSPN1M-i Plus.
“From Jan 1 to Dec 31, 2018, parents who make total deposits in SSPN1M, SSPN1M-i or SSPN1M-i Plus of up to RM500 into the accounts of children in elementary school, are eligible to receive GS500 which is a free deposit of RM500.
“The GS500 is a good education savings incentive as it motivates parents to start investing and the culture of saving could absorbed,” he said when met at Menara PTPTN.
He said what’s interesting is parents don’t need to make any application for GS500 because by opening an account or adding savings in SSPN1M, SSPN1Mi or SSPN1M-i Plus of at least RM500 this year, they are eligible to enjoy the incentive.
As of March 31, 68,640 depositors received the GS500. This benefit is given within a year, however it is subject to the earliest 500,000 accounts.
“The GS500 incentive is given at the end of the same month after the net deposit amount reaches RM500. However, it is subject to the first 500,000 accounts.
“These incentives could be withdrawn before they are 18 years old with the minimum balance required to be at least RM1,000 including GS500.
“Early savings is aimed at preparing for education that will ensure the future of the children. It is also accompanied with a cheap and comprehensive additional deposit as well as keep the account active until the expiration of the promotion period on Dec 31.
New or existing SSPN1M-i Plus depositors are eligible for draws with the condition that the account remains active without any delinquency until the date of the draw while the number of draws is determined from the SSPN1M-i Plus deposit balance on the promotional end date.
“For this year, PTPTN provides a generous prize of four major prizes — family travel packages to Disneyland Japan or umrah and an annual cash prize of RM100,000 awaits you.
“Other prizes include family travel packages in the country worth RM4,000 and cash prizes for 4,006 Cabutan WOW! yearly,” he said.