3.18% (incl. 6% GST). this is what I got from my UT agent.

If my current paying tax bracket will only see RM 150 deducttion if I invest in PRS, should I still invest RM 3K per year? or should I just invest RM 1k which is enough to get the youth incentive?

It depends on your circumstances. If you don't need that RM2k now, then just dump RM3k in PRS to maximize your tax deduction. If you feel that RM2k is better be saved elsewhere (e.g. emergency savings), then just dump RM1k in PRS just to get the youth incentive, and save the RM2k elsewhere.

But even if I put 3K in PRS, my tax deduction will still be quite small amount and cannot be maximized yet at this point of time cause I just started working. I am thinking if I should put the remaining 2K aside and perhaps invest in other funds or stocks?

Yes, that's what I was trying to say. If you need the money in the near future, then save or invest the money somewhere else instead of PRS. Only invest in PRS if you don't need the money in the near future, since you can only withdraw from PRS when you're 55 years old.

please do. not to mention, with PRS you money will be 'stuck' for a long time

thank for ur reply, really appreciate that.

besides the tax relief which is only until 2021 and the additional free rm1k, are there any other benefits of prs rather than buying own unit trust? since prs u are unable to withdraw full until u retire, while unit trusts u can sell when u really need cash for emergency.

forced 'savings' as well. other than those you stated, nope wouldnt go for prs.

Everyone just do it for the tax relief. Just dump RM3k a year, of RM250 a month, for the maximum tax relief. Besides that, it's kind of useless.

Treat it like EPF account, EPF also you can't withdraw other than Acc 2, it's for your retirement

How does the interest rates for PRS looks like?

Hi imnotabot,

I just would like to claim tax relief up to Rm3000. how should i go about that?
I saw public bank stated:

Minimum initial contribution for each fund - RM1,000
Minimum additional contribution for each fund - RM100
http://www.publicmutual.com.my/prs/Resources.aspx

is that what u mean is, dump 3k this year, how about next year, do i need to dump another 3k for remaining year to take advantage of tax relief?

Just would like to have basic info before i headover to PBB office.

Thanks in advance bro.

while waiting for his response, may i kay-poh abit...
pls note there is a sales charge for PM PRS funds refer to post# 2208
many other PRS providers did not have Sales charges..

Buy any PRS fund with RM3k. Done. That's all.
Yes. Need to dump another RM3k next year.

For PRS, don't think about the tax relief. Think also the about the best bang for buck fund.

If I were you, I will start away from public mutual. Reason:
1) lousy fund (which mean overtime you will get more money if you choose other fund - cimb/kenanga)
2) 3% service charge.

Buy PRS from FSM MY. Zero percent service charge.

This post has been edited by Ramjade: Jun 30 2017, 06:13 PM

Yes, you need to do it every year. Each year, contribute a total of RM3k into one or many PRS funds.
If you have the money now, you can dump that 3k into PRS now. If not, you can contribute RM250 a month, like what I'm doing.

@Imnobot & @Ramjade

Understand what u mean. thanks for the reply. Will walk in for registration.

Avoid PM totally... It's way greener elsewhere..

Telling from experience, mine and others... Don't repeat the mistake again...

Spent some time Google then u wil understand wat I meant...
Or else ask @T231H

lucky i went for cimb, did a bit of search and did saw recommend it

hahaah..i went for cimb as well