Ask any Singaporean parent what are some of the many practical decisions that he or she will need to make upon the arrival of a newborn child and one of them will likely to involve the opening of the Child Development Account (CDA) with a local-based bank.
The CDA is a special savings account that rewards parents for saving up for their children. The savings will be matched dollar-for-dollar by the Government up to the cap of $6,000 each for the first and second child, $12,000 each for the third and fourth child and $18,000 each for the fifth and subsequent child. One can save in the CDA any time until 31 December in the year your child turns 12 years of age.
I know there are some parents who lament that the money may be too little but if you have 3 monkies like me, any form of monetary help is always a big bonus. Especially since it essentially halves my preschool fees for Ale every month!
Yes, the savings in the CDA may be used to pay approved expenses for all children at Approved Institutions registered with the Ministry of Social and Family Development (MSF) under the Baby Bonus Scheme, like childcare centres, kindergartens and special education schools. The CDA savings can also be used for medical expenses, approved healthcare items and even purchase MediShield or Medisave-approved private integrated plans for all your children. Or how about at optical shops registered with the Accounting and Corporate Regulatory Authority (ACRA) too?
Currently, a parent can opt to open a CDA account with either OCBC or Standard Chartered banks. But come the second quarter in 2015, POSB will be offering CDA services as well. And in celebration of its recent appointment a CDA-certified bank, POSB has launched an attractive Early Bird Bonus offer to encourage pre-registrations before the official launch in May 2015!
All you have to do is to register for the Early Bird Special by 31 October 2014 and open a CDA account with POSB by 30 June 2015, and you will get to enjoy 6 months Early Bird Bonus Interest of 1% per annum on top of POSB Child Development Account (CDA) Interest Rate on your children's savings! Existing CDA Holders with other banks can also switch easily online in 2015, but you will also have to register your interest via HERE.
I guess no parent will object to having S$5,000 credited into his/her child’s CDA account too, no? Just upload your child’s cutest photo accompanied with a creative caption and #POSBBabyBonus to POSB's Facebook page before 31 October 2014 and you might be S$5,000 richer! Or your child, actually.
Finding that cute photo of your child has never been so lucrative.
For more information and to register for the Early Bird Special, visit www.posb.com.sg/cda. To stand a chance to win S$5,000, submit your photos at www.facebook.com/posb. But hurry, as both end on 31 October 2014!