This savings scheme has been around for the longest time, but maybe no one has been really aware of it. It’s a scheme to encourage parents to open a deposit account for their children. When they come of age to attend college and may need the money to further their education, they may apply for loans with PTPTN for an amount equivalent to what their deposit account balance is. Besides, the deposit account earns equal or slightly higher fixed deposit rates. Withdrawals are allowed, but it is limited to only 10% of the account balance. This is fair and reasonable since this account is meant for funding education and not a mere savings account.
But the best has yet to come…by contributing to this savings account, you the parent, get to enjoy some tax exemptions. It’s not a small exemption, mind you, you get to be exempted of RM3,000! Now if that has set you thinking and if you’re wondering if it should be you or your spouse who should take advantage of the exemption, you have nothing to worry about because BOTH of you qualify for the RM3,000 exemption each! That’s RM6,000 savings within the family. If you have two children, does that mean you get to double the exemption? Well that I don’t know because I’ve yet to explore enough.
The local banks where you can join this scheme include CIMB Bank, Hong Leong Bank, Public Bank, Maybank, Bank Simpanana Nasional and Bank Rakyat. There could be more that I’m not aware of so do double check.
It’s worth paying the PTPTN a visit to find out more. It’s always worthwhile when there’s so much savings at stake. Now I can’t wait for my baby to turn one to start taking advantage of this!
