Key takeaways
- SSPN tax relief is up to RM8,000 a year on net savings (deposits minus withdrawals in the same calendar year), and PTPTN says it runs from YA 2025 to YA 2027.
- The RM8,000 cap is per taxpayer, not per child, and under separate assessment only one parent can claim it.
- PTPTN declared a 4.10% SSPN dividend for 2025 on 6 May 2026, up from 4.05% for 2024.
- SSPN Prime lets you withdraw any time (online up to RM1,000 a day), while SSPN Plus allows withdrawals only after 3 years and keeps RM1,000 in the account.
- SSPN Prime's free takaful pays an amount equal to your balance plus RM3,000 if the depositor dies, so it does not fund a whole degree on its own.
- To count for YA 2026, your SSPN deposit must reach the account by 31 December 2026.
What is SSPN, and how is SSPN Prime different from SSPN Plus?
SSPN (Skim Simpanan Pendidikan Nasional, the National Education Savings Scheme) is run by PTPTN, the same agency that gives higher education loans. Parents save for a child's diploma or degree, receive a yearly dividend, and can claim income tax relief on what they save. Today it comes in two products: Simpan SSPN Prime (formerly SSPN-i, first launched in 2004) and Simpan SSPN Plus (formerly SSPN-i Plus), which adds takaful protection run by four takaful operators appointed by PTPTN, one of them Great Eastern Takaful.
| SSPN Prime | SSPN Plus | |
|---|---|---|
| Who can open | Malaysian citizens aged 16 and above | Malaysian citizens aged 16 and above |
| Beneficiary | Yourself, your own or legally adopted child, aged 1 day to before 29 | Same |
| How you pay | Any amount, any time (online, counter, salary deduction) | A fixed monthly package by salary deduction, auto debit or direct debit |
| Withdrawals | Any time; online up to RM1,000 a day per account | Only after 3 years, and RM1,000 must stay in the account |
| Free protection | Free takaful for depositors aged 18 to 65 with at least RM1,000 saved: death or permanent disability pays an amount equal to the balance, plus RM3,000 death charity | Takaful benefits up to RM1.2 million depending on package, including critical illness, hospital allowance and funeral expenses, with no health screening |
| Tax relief on net savings | Up to RM8,000 a year | Up to RM8,000 a year, and the takaful part may count under life insurance relief |
| Matching grant | Up to RM10,000 for eligible lower income families | Not offered |
In short: Prime is a flexible savings account with a small free cover. Plus is a monthly commitment that bundles savings with a basic takaful plan. Source: PTPTN, Simpan SSPN Prime and PTPTN, Simpan SSPN Plus.
How much SSPN tax relief can you claim for 2026?
PTPTN states that Budget 2025 extended the SSPN relief of up to RM8,000 a year for net savings for three years, from year of assessment (YA) 2025 to YA 2027. LHDN's relief table defines net deposit as the total deposited in the calendar year minus the total withdrawn in the same year. So for YA 2026, only money that reaches your SSPN account by 31 December 2026 counts.
- Who claims: parents (biological or adoptive) or legal guardians saving for their child. Under separate assessment, only one parent can claim; under joint assessment, the couple claims together.
- The cap is per taxpayer, not per child: saving RM8,000 for each of three children does not give you RM24,000 of relief.
- Withdrawals for tertiary fees do not cut your relief: PTPTN says withdrawals to pay diploma, bachelor's, master's or PhD fees are left out of the net savings calculation. Any other withdrawal in the same year reduces it.
- SSPN Plus: the takaful part of your package may also be claimed under the RM7,000 "life insurance and EPF" relief, inside its RM3,000 limit for life insurance or family takaful.
Worked example (assumptions are for illustration only)
| Scenario in 2026 | Deposited | Withdrawn | Net savings you can claim | Tax saved at an assumed 11% marginal rate |
|---|---|---|---|---|
| A: no withdrawal | RM8,000 | RM0 | RM8,000 | RM880 |
| B: withdrew RM3,000 for a laptop | RM8,000 | RM3,000 | RM5,000 | RM550 |
| C: withdrew RM3,000 to pay diploma fees | RM8,000 | RM3,000 (education) | RM8,000 | RM880 |
| D: deposited RM12,000 | RM12,000 | RM0 | RM8,000 (capped) | RM880 |
Your real saving depends on your own chargeable income and tax band. This is general information, not tax advice; check the latest rules with LHDN or your tax adviser. For the other insurance related reliefs, see my insurance tax relief guide.
How to open an SSPN account and check your statement
- Download the myPTPTN app or go to the myPTPTN portal and register with your MyKad details.
- Click Services, then Open Simpan SSPN Prime Account (or Open Simpan SSPN Plus Account) and fill in your child's details.
- Check the account information and confirm the declaration.
- Make the first payment. The system issues a receipt you can save or print.
- For SSPN Plus, complete the salary deduction, auto debit or direct debit form for the monthly package. It is required for the monthly commitment.
- Name a nominee. PTPTN allows up to 2 nominees, who must be Malaysian citizens, and you submit the form in person at a PTPTN counter with your MyKad.
Each depositor opens one account per beneficiary, but different depositors (for example a grandparent) can open accounts for the same child. To check your balance, dividend and yearly statement for tax filing, log in to the myPTPTN app.
Common mistakes I see: depositing in early January and thinking it counts for last year; both parents claiming the full RM8,000 under separate assessment; withdrawing for non-education needs in December and losing part of the relief; and never naming a nominee. Without one, family members need a grant of probate or letters of administration once the balance is RM3,000 or more.
SSPN dividend, withdrawals and the matching grant
On 6 May 2026, PTPTN announced a dividend of 4.10% for 2025, up from 4.05% for 2024 and the highest in 11 years. It went to 6.07 million depositor accounts and was credited directly, with statements viewable in myPTPTN from 7 May 2026.
| Item | Figure | Source |
|---|---|---|
| SSPN dividend for 2025 | 4.10% | PTPTN, 6 May 2026 |
| SSPN dividend for 2024 | 4.05% | PTPTN, 6 May 2026 |
| Tax relief on net savings | Up to RM8,000 a year, YA 2025 to YA 2027 | PTPTN, LHDN |
| SSPN Prime matching grant | Up to RM10,000 per family, basic family income up to RM4,000 | PTPTN |
| Wider grant under GAPAI | Up to RM5,000 per family, income above RM4,000 up to RM6,000, for two years from Budget 2025 | PTPTN, 6 May 2026 |
| SSPN Plus monthly packages | From RM30 (Intan) to RM500 (Berlian) | PTPTN |
The matching grant is paid only when the child enrols at a recognised institution (certificate, foundation, matriculation, diploma or higher), must be claimed during the study period, and the child must be under 29 when applying. Past dividends are not a promise of future rates.
What SSPN does not cover, and where insurance fits
SSPN is a good habit and a useful tax relief. But it is a savings account, and most parents I meet overestimate how much protection comes with it. The free takaful on SSPN Prime pays an amount equal to your balance, plus RM3,000 death charity. If you have saved RM6,000 by the time your child is five, that is roughly what the family receives, while the bill for a degree is still more than a decade away.
| If the parent who saves dies or becomes disabled | SSPN Prime | SSPN Plus | Insurance education plan with payor benefit |
|---|---|---|---|
| What is paid | An amount equal to the balance, plus RM3,000 death charity | The package's takaful benefit, up to RM1.2 million on the highest packages | The sum assured and, with a payor or waiver rider, the future premiums are waived so the plan carries on |
| Does saving continue? | No, deposits stop | Depends on package terms | Yes, if the waiver applies |
| Medical bills for the child | Not covered | Some hospital allowance only | Needs a separate medical card |
Many families use both: SSPN for the RM8,000 relief and flexible saving, and a proper education plan or life cover so the plan still finishes if a parent is not around. SSPN also does not replace a medical card for your child or income protection for you.
Not sure how SSPN fits your family's plan? Ask me
I am Lulu Loke, a Great Eastern Life Planning Advisor serving families in Kuala Lumpur and Selangor, including Seri Kembangan, Serdang, Puchong, Cheras and Bukit Jalil. I talk in Mandarin, English or Cantonese.
- Tell me your children's ages and what you already have (SSPN, ASB, insurance). I will show you, in plain numbers, whether the education fund still finishes if something happens to you.
- If you already have an education or life policy bought elsewhere, I can go through it with you and explain what it covers.
- Before 31 December, I can remind you to top up SSPN so the deposit counts for YA 2026.
No hard selling. Ask your question on WhatsApp first and take your time to decide.