Hey! If you are here because you are thinking of which bank to open a Child Development Account (CDA), then congratulations! You will soon be welcoming your bundle of joy to this world!
First off, let me explain what the CDA is all about. The Baby Bonus Child Development Account (CDA) is a co-savings scheme, where savings deposited by parents into the CDA are matched dollar-for-dollar by the Government, up to a specified ceiling, depending on the child's birth order. The CDA monies can be used at Approved Institutions (AI), such as Child Care Centres, kindergartens, Hospitals, Clinics, Pharmacies and Optical shops.
Yes! You can even use the money for your Pediatrician visits and for Vaccinations.
This article will compare the CDA from each of the 3 local banks and help you make the best choice, to give your child a head-start he/she deserves!
If your child is born on or after 24 March 2016, he/she is eligible for the CDA First Step grant of S$3,000 (announced on Budget Day 2016). To receive the grant, parents must wait until 1 July 2016 before saving in the child’s CDA. Since the CDA First Step Grant is a government initiative, the benefit is the same across all 3 banks!
First off, let me explain what the CDA is all about. The Baby Bonus Child Development Account (CDA) is a co-savings scheme, where savings deposited by parents into the CDA are matched dollar-for-dollar by the Government, up to a specified ceiling, depending on the child's birth order. The CDA monies can be used at Approved Institutions (AI), such as Child Care Centres, kindergartens, Hospitals, Clinics, Pharmacies and Optical shops.
Yes! You can even use the money for your Pediatrician visits and for Vaccinations.
This article will compare the CDA from each of the 3 local banks and help you make the best choice, to give your child a head-start he/she deserves!
CDA First Step Grant (NEW!)
If your child is born on or after 24 March 2016, he/she is eligible for the CDA First Step grant of S$3,000 (announced on Budget Day 2016). To receive the grant, parents must wait until 1 July 2016 before saving in the child’s CDA. Since the CDA First Step Grant is a government initiative, the benefit is the same across all 3 banks!
1. POSB (Smiley CDA)
Interest Rate: 2% (Up to a max. of S$12,000 for 1st & 2nd Child)
Remaining balance: 0.05%p.a
Others:
- 2% interest is guaranteed for 5 years
- Baby Bonus NETS Card ( Discounts on various online, retail and dining merchants).
Interest Rate: 2% (With no deposit cap on all balances)
Regardless of your choice, the CDA is a must to give your child a head-start in life. Whether you intend to use the money for enrichment, education and heathcare (at approved institutions), the government will provide a dollar-for-dollar matching up until the cap, based on the order of your child.
Hopefully this article has helped you in your parenting journey!
Notes:
*Singaporean parents do not need to make a trip to the bank to open a CDA.
*The funds in the CDA cannot be withdrawn in cash.
*All banks will issue a Baby Bonus NETS card to the parents.
Credits: Babybonus
Others:
- 2% interest is guaranteed for 5 years
- Baby Bonus NETS Card ( Discounts on various online, retail and dining merchants).
2. OCBC (CDA)
Interest Rate: 2% (Up to a max. of S$36,000)
Remaining balance: 0.05%p.a
Others:
- 3% Cashback on medical spend, on top of existing benefits with OCBC 365 Credit Card.
- Discounts with the OCBC Baby Bonus Card at bookstores, optical shops, enrichment courses and other merchants like MindChamps and Kinderland.
Others:
- 3% Cashback on medical spend, on top of existing benefits with OCBC 365 Credit Card.
- Discounts with the OCBC Baby Bonus Card at bookstores, optical shops, enrichment courses and other merchants like MindChamps and Kinderland.
3. UOB (CDA)
Interest Rate: 2% (With no deposit cap on all balances)
Remaining balance: N.A
Others:
- Kungfu Panda gift set promotion*
Others:
- Kungfu Panda gift set promotion*
Summary
Regardless of your choice, the CDA is a must to give your child a head-start in life. Whether you intend to use the money for enrichment, education and heathcare (at approved institutions), the government will provide a dollar-for-dollar matching up until the cap, based on the order of your child.
Hopefully this article has helped you in your parenting journey!
Notes:
*Singaporean parents do not need to make a trip to the bank to open a CDA.
*The funds in the CDA cannot be withdrawn in cash.
*All banks will issue a Baby Bonus NETS card to the parents.
Credits: Babybonus
