SSPN is giving out 3% Dividend, is SSPN still worth investing in?
The National Education Savings Plan (SSPN) is a government-run savings plan to encourage people to save, and SSPN depositors will enjoy many benefits such as interest on their savings, insurance coverage, personal income tax rebates, death benefits, medical coverage, and more.
SSPN will announce and distribute the Dividend in February every year, and in previous years, SSPN has distributed at least 4% Dividend, making it a favorite of many depositors who do not invest or do not want to take the risk of investing.
However, the latest data released by SSPN shows that SSPN will only pay out 3% Dividend, while depositors who opened an account before December 31, 2018 can deposit a minimum of RM500 during the promotional period to get an additional 1% Dividend.
The SSPN 3% Dividend is considered competitive when compared to a regular time deposit, as a 12-month regular time deposit only pays approximately 1.85% p.a. If you choose the 12-month time deposit offer (Promotional FD), it is only about 2.50 to 2.70% p.a.
However, if you compare SSPN with ASNB, you will find that ASNB is a better investment than SSPN. ASM, ASM 2 Wawasan and ASM 3 under ASNB have good annual dividends and are expected to pay out at least 3.50% p.a. this year.
Although SSPN is entitled to various benefits such as personal income tax deduction up to RM8,000, SSPN also has one major drawback and that is the lack of financial transparency.
