Saving money for my child college fund is one of my financial goals that I would like to achieve with no hassles and no disruptions. I wrote post introduction to SSPN and it is the best choice for me right now. I adjust my budgeting plan so I can place a new category for my child savings which means that my spending and expenses behaviour will decrease to grant a path to save money for college fund. Here I put 7 reasons why SSPN is the most suitable for savings for my child higher study.
It helps me to overcome my financial problems in future.
I will never know if I can financially support my children in 20 years from now. I will help my children by put money into savings. It would be better for me to save some of money today for greater tomorrow.
The dividend or return is consistently from 3% – 4%.
The return is not quite high and might not interest some of the people, but I’m satisfied with that because it is consistent. I don’t have to worry if the economy is down.
My child is eligible for taking a student loan if my savings exceed RM3000.
This is the best reason why I chose SSPN to be my child college fund. What if my financial is facing problems by the time my child goes to university? What if I’m broke in 2028? My child still can pursue a degree in college.
Tax relief on savings is up to RM3000 per year.
Technically I save more just by deposit monthly savings here. Tax relief is applicable for this fund.
It offers automatic debit transaction mode.
Using automatic debit gives you no choice but to save. It is a good way to save money for people who seems hard to save money out of their salary. Every month, I set out RM 50 auto debit for the first year.
Free insurance coverage up to RM 50000.
It is valid for account holder who has balance RM1000. The death compensation for depositors is RM1000 and beneficiary is RM500.It covers maximum RM50000 for general insurance and RM100 000 for trust insurance
The fund is backed up by Malaysian government.
There’s no risk at all and it guaranteed by the government. Every year you will gain dividend as promised but it is not significant like other financial provider. But the stability and the consistency of the fund favours me more than the dividend payout.
Note: College Funds, some countries use terms of Education Savings
Link to Skim Simpanan Pendidikan Nasional.
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