Which is your preferred Kids Savings Account?
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dicky:
how to save in CPF SA account? how old is ur son? i tot only when u start working then can have cpf account???DS has POSB account for fun, and learning to save. Trying hard to tell him to save and cultivate habit, to no avail rite now.
So his angbao money put into his CPF SA account until he is 12 yrs old or earlier if he finally understand the virtue of saving.
CPF SA cannot take out, but 4% compounded over many years as forced savings. Rather this than miserable bank interest, and the risk he spent it all the minute he grown up (like me lah! Spent childhood 1.5k savings within 3 months) -
DS coming to 8 years old. CPF account can be opened the minute kids are born, by means of contribution to SA account. No need wait until start working…
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Dicky, how tro open CPF account for kids? via cpf website? if this is do-able, i want to create one for my children too.
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Just filled up the form for Minimum Sum Top Scheme, and submit by post to CPF board together with cheque and birth cert copy.
If intend for kids grow up to use CPF for education or housing etc, don’t recommend put into CPF. SA cant be used for that. -
dicky:
thanks for the infor. let me find out more and discuss with hubby. once put in cannot take out.Just filled up the form for Minimum Sum Top Scheme, and submit by post to CPF board together with cheque and birth cert copy.
If intend for kids grow up to use CPF for education or housing etc, don't recommend put into CPF. SA cant be used for that. -
micollh:
Putting into CPF SA account locks up the money until your kid reaches retirement!
thanks for the infor. let me find out more and discuss with hubby. once put in cannot take out.
You should be looking at either endowments, unit trusts or shares that doesn't have such a long lock-in period.
My 2¢! -
financial_guru:
i read thru the mimimum sum top-up, i think it's not the option i will take. i might as well save for my own retirement haaa.. i will prefer something that wont lock up the fund, so that when they need the money for education, we can retrieve it.
Putting into CPF SA account locks up the money until your kid reaches retirement!micollh:
thanks for the infor. let me find out more and discuss with hubby. once put in cannot take out.
You should be looking at either endowments, unit trusts or shares that doesn't have such a long lock-in period.
My 2¢! -
That's right. Won't recommend it if have intention to take out.SA meant for retirement, that why give 4% (5% if 1st 60K while stock lasts)
Unless like us, don't need it since the amount too small to make a difference anyway. The only benefit is just for DS to faster meet his Minimum Sum and take out the excess for investment in multiple housing or investment.
Stick to bank deposit for lowest risk or stock market dividend for highest risk. Doubt DS can save enough to buy shares, insurance etc. Think at best $200 per year exclude Ang Bao.... :oops: -
dicky:
More clarification, please.Just filled up the form for Minimum Sum Top Scheme, and submit by post to CPF board together with cheque and birth cert copy.
If intend for kids grow up to use CPF for education or housing etc, don't recommend put into CPF. SA cant be used for that.
Am surprised to know can open a CPF a/c for kids!
If this is possible, will do so for my girl to earn the risk free interest. -
Usually company will make a cash contribution from your salary, and CPF automatically open your account if you do not have an account.
CPF board does allow cash topup to recipient related to giver, irregardless of age. To open a CPF account, simply make a contribution to won/recipient CPF account via Minimum Sum Top-up Scheme. The same scheme that allows you to claim up to 7K tax relief when you topup your parent's CPF SA/retirement account.
Not many people know of this since there is no info on CPF website. And no-one ask anyway as cash goes in CPF SA account cannot take out.
Hope this helps :boogie:
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