Feb 1 2013, 10:54 AM
QUOTE(smile93 @ Jan 22 2013, 05:12 PM)
SSPN : Disadvantages
SSPN comes with quite a few attractive advantages, but it also has its downsides.
Income Tax Relief is NOT Available for Individual With Own SSPN Account
As this account aims to promote savings for higher education and not for individual interest, the income tax relief is not made available unless you have a legal beneficiary for your account (your own children OR a child under your legal care OR immediate family members).
So to summarise, you can still open an account for your nephew, auntie, best friend etc. but unless you fall under the categories above, you will not be given the income tax relief!
Withdrawing Your Money
Unfortunately, withdrawing money from your SSPN account is not a simple task! Unlike the normal savings account, SSPN has very strict rules when it comes to withdrawing your money.
Depositors can only withdraw their money once a year, and the maximum amount that is allowed to be taken out is RM 500 or 10% of your total savings!
A 100% withdrawal is possible but will require the beneficiary’s offer letter to local university or colleges, a vague statement on the beneficiary ‘no longer wishing to participate in the educational process’, or in the event of the beneficiaruy’s / depositor’s death or incapacitation.
read carefully... it says withdrawal is only permitted with offer from local uni. other websites say govt approved uni only. nothing on official website detailing list of uni or if private/shophouse college qualifies. come 18 years, when your child is old enough to enroll, the approved uni list will most likely have changed and you will need another 10 years to complete the withdrawal. the only other way to get the money out is if your child gets a certificate of death. SSPN comes with quite a few attractive advantages, but it also has its downsides.
Income Tax Relief is NOT Available for Individual With Own SSPN Account
As this account aims to promote savings for higher education and not for individual interest, the income tax relief is not made available unless you have a legal beneficiary for your account (your own children OR a child under your legal care OR immediate family members).
So to summarise, you can still open an account for your nephew, auntie, best friend etc. but unless you fall under the categories above, you will not be given the income tax relief!
Withdrawing Your Money
Unfortunately, withdrawing money from your SSPN account is not a simple task! Unlike the normal savings account, SSPN has very strict rules when it comes to withdrawing your money.
Depositors can only withdraw their money once a year, and the maximum amount that is allowed to be taken out is RM 500 or 10% of your total savings!
A 100% withdrawal is possible but will require the beneficiary’s offer letter to local university or colleges, a vague statement on the beneficiary ‘no longer wishing to participate in the educational process’, or in the event of the beneficiaruy’s / depositor’s death or incapacitation.
the benefits list is sooo long... but withdrawal terms are so loosely written... i smell a big fat rat
for ppl who can save up to 6k a year, to be entitled to the 26% effective savings, i think they already have quite a bit of income so no need govt uni. good scheme... but not enough to fool ppl smart who earn enough to save 6k a year for one child. damn stupid. pay 26% tax a year to a govt who don't even take care of your kids' education.
with my analysis above, the scheme will definitely collapse and i will get a call from someone in the internal affairs ministry... again.
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