6 Ways to Invest Your Child’s Angpow & Duit Raya in Malaysia
- Chua Pei Wen
- Apr 20
- 5 min read
Updated: 1 day ago
After Chinese New Year and Hari Raya festivities are over, it's time to turn our minds to the stacks of ang pow and duit Raya, sums that quietly become our children’s first lesson in money management.
Too often, they blend into daily spending instead of being seen for their future potential. However, they are a golden opportunity to teach our kids the value of money and how to save, invest, spend, and give.
Some parents (like myself) have trained their kids to pass us their ang pows, not only for physical safekeeping, but to also better manage their little piles of cash.
But today, parents have more options than ever, from safe savings to higher-growth choices.
Here are six simple ways to make those little envelopes go further for your child.
1. Fixed Deposits (FD)
What is it?
A simple savings option where you place money in a bank for a fixed period
Earns interest of around 2.7% to 4%
Returns depend on:
Bank offerings
How long you lock the money in
Ongoing promotions
Withdrawing early usually means losing the interest
Why consider it for kids?
It’s low-risk, predictable, and a good starting point to build saving habits. For children, junior FDs make it even more accessible, often with lower minimum deposits and sometimes better rates or added flexibility like partial withdrawals.
A small tip
Always check when your FD matures. If left unattended, it may auto-renew at a lower rate. And don’t just rely on online rates-sometimes walking into a bank or checking digital banks like GXBank, Ryt Bank, or Boost Bank can unlock better offers.
2. Education savings fund (SSPN – PTPTN)
What is it?
A government-backed savings scheme for your child’s future education
Can be opened from birth
Offers average returns of around 4% per year, along with added benefits like tax reliefs
Why consider it?
It’s built for long-term education planning and comes with incentives that go beyond just returns.
SSPN Prime vs SSPN Plus (in simple terms):
SSPN Prime offers flexibility with no monthly commitment and easier withdrawals, along with tax relief up to RM8,000/year.
SSPN Plus requires a monthly commitment but includes takaful (insurance) and higher combined tax relief of up to RM11,000.
Extra perks you might not know:
Some states offer one-off incentives of RM100–RM500 just for opening an account. These depend on location and application windows, so it’s worth keeping an eye out.
3. Private education savings plans (with insurance)
What is it?
Savings plans offered by insurers or financial institutions
Usually structured as:
Investment-linked plans (higher potential returns)
Endowment plans (more stable, lower returns)
Combines saving + insurance protection
Why consider it?
It adds a layer of security, if something happens to the parent, the plan continues, ensuring your child’s education fund is protected.
Key idea in simple terms
You’re not just saving; you’re also building a safety net. Some plans allow flexibility in how funds are allocated, depending on your risk comfort.
Before committing
It’s important to think about future education costs (including inflation), understand the fees involved, and choose a plan that matches your comfort level, not just the projected returns.
4. ASM / ASB / ASN (ASNB Funds)
What is it?
Investment funds managed by Amanah Saham Nasional Berhad (ASNB)
Very popular in Malaysia—and often fully subscribed quickly
Types of funds:
Fixed-price funds (ASM / ASB): Unit price stays at RM1, aiming for stability and steady dividends.
Variable-price funds (ASN): Prices move with the market, offering higher growth potential but with more risk.
Why consider it?
They’ve historically delivered returns higher than fixed deposits, and dividends are tax-free, which makes them especially attractive.
Flexibility matters
There’s no lock-in, you can withdraw anytime, subject to limits (e.g. daily and monthly caps). This makes it both accessible and practical.
For kids
Junior accounts can be opened from birth, making this a strong option for long-term growth.
5. EPF (Employees Provident Fund)
What is it?
Malaysia’s national retirement fund
Children (from age 14) can open an account
Why consider it? (i-Saraan incentive)
The government contributes an additional 20% (up to RM500 per year) on voluntary contributions. The sweet spot is contributing around RM2,500 annually to maximize this benefit.
Returns in simple terms
EPF consistently offers one of the higher returns among low-risk options, with recent dividends around 6.15%.
How it works
Your contribution is automatically split:
75% locked until age 55
15% for specific needs (including education)
10% accessible anytime
Important to note
You can’t choose how the money is split, and a large portion remains locked long-term. So this is more of a future wealth tool, not a short-term education fund.
6. Moderate & high-risk investments
What is it?
Investments like:
Unit trusts
Stocks
Market-linked funds
Managed under a parent/guardian account
Why consider it?
It offers the potential for higher returns and helps grow funds faster over time, while also adding diversity to your child’s financial portfolio.
But here’s the reality
Higher returns come with higher risk. Market ups and downs will directly impact your child’s savings.
Best approach
Think of this as a top-up strategy, not the foundation. It works best once your core savings are already in place.
Beyond the Envelopes
At the end of the day, we’re simply stewards of our children’s ang pow and duit Raya, holding it today for who they’ll become tomorrow.
It’s easy to think in the short term-quick returns, easy wins, what feels convenient right now. But real impact comes from zooming out. Choosing consistency over convenience. Direction over impulse.
Diversifying their savings across safer options and growth opportunities doesn’t just spread risk, it quietly builds resilience and gives them a head start they may not even realise yet.
Because over time, every small, intentional decision compounds.
Every ringgit set aside with thought becomes something far more meaningful down the road.
Not everything needs to be perfect, just purposeful.
Start them young, let it grow
If these ideas are about helping their money go further, it begins with how they see saving in the first place.
This kid-friendly guide to saving is a simple, creative way to help children understand money, not just how to keep it, but how to think about it. From small habits to little decisions, it gives them a head start that quietly builds over time.
About The Author:
Chua Pei Wen is a mom of two boys- a toddler and a soon-to-be toddler. When there's no havoc and background screaming, she enjoys crocheting while indulging in reality shows. Occasionally, she attempts to experiment with new dishes, subjected to approval (or rejection) of her boys!
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