CDA account

[mummy2008]

BigDevil:

The following taken from https://www.babybonus.gov.sg/bbss/html/index.html


Cash Gift
You will get a cash gift of up to $4,000 each for your 1st and 2nd child and $6,000 each for your 3rd and 4th child. All your children born on or after 17 August 2008 will also enjoy Government contributions in the form of a dollar-for-dollar matching for the amount of savings you contribute to your child’s Children Development Account (CDA). If your child is born before 17 August 2008, he or she will enjoy the Government matching contributions in the CDA if he or she is your second to fourth child.

So if you do not have CDA, you will not receive the dollar-for-dollar matching.

My first child was born before 17 Aug 2008, hence we didnt apply CDA. But 2nd is coming, so we are planning to do it.

Btw, do you know which bank is good for saving account (for Children)?
I see that OCBC is more active on young saver...any comments?

[mummy2008]

ppnqq:

You can use the money in this CDA account to deduct the monthly child care fee if your child or his siblings are attending any (yes, it can be used by the siblings too). It can also be used to pay for any tuition fee and some others if the merchants participate in this scheme.


You can save any amount of money into this account on your own accord but you are not allowed to withdraw any cash out from this acct. Also note that the government will only match the max cap up till they are 6 years old.

Eg. : Let's say your child is given $6k.

If now you deposit $2k into this acct, the govt will also deposit $2k into this acct. You are free to deposit any amount of money into this acct till any age BUT, if, you only managed to deposit only a total of $5k into this acct when your child reaches 6 years old, you will only get $5k from the govt, not $6k. So, if you wish to get the full amount from the govt, you will have to make sure you deposit the $6k just before your child turns 6 years old.

But if you deposit $10k into this acct (note : YOURS only, not including the govt's) before your child turns 6 years old, the govt will match, or rather, will deposit only $6k into this acct and not $10k because this is the max/given amount to this child.

You are not allowed to withdraw any cash out from this acct and if you did not get to fully utilise the money in this acct, the bal money in this acct will be transferred over to his CPF acct when he finishes school or by the age of 18. Can're remember this part well, pls do check with MCYS.

Hope the above is clear to you.

Hi ppnqq,

Thanks for your explaination. Yes, it's clear to me now.
We should call MCYS as i just spoke to customer service in OCBC that i need approval from MCYS in order to open CDA account.
Many thanks for your info

[cherrygal]

You can only open CDA at OCBC or StanChart. OCBC is more aggressive. But take note that the money in the CDA cannot be withdrawn as cash for your use. It can only be used at Baby Bonus approved institutions such as childcare centres or pediatricians.

[BigDevil]

mummy2008:

Btw, do you know which bank is good for saving account (for Children)?

I see that OCBC is more active on young saver...any comments?

As mentioned by cherrygal, you can only open CDA at OCBC or Standard Chartered.

But for normal savings accounts for children, you can check out this thread: http://www.kiasuparents.com/kiasu/forum/viewtopic.php?t=13010

[mummy2008]

cherrygal:

You can only open CDA at OCBC or StanChart. OCBC is more aggressive. But take note that the money in the CDA cannot be withdrawn as cash for your use. It can only be used at Baby Bonus approved institutions such as childcare centres or pediatricians.

Thanks cherry. Yes,we should open cda account as we can use it for edu n medical.

How to apply cda? Was told from ocbc, I need to get approval from mycs

[mummy2008]

BigDevil:

mummy2008:

Btw, do you know which bank is good for saving account (for Children)?

I see that OCBC is more active on young saver...any comments?

As mentioned by cherrygal, you can only open CDA at OCBC or Standard Chartered.

But for normal savings accounts for children, you can check out this thread: http://www.kiasuparents.com/kiasu/forum/viewtopic.php?t=13010

Thanks bigd, I have checked the link. It's so useful to me, many thanks

[BigDevil]

mummy2008:

How to apply cda? Was told from ocbc, I need to get approval from mycs

It's many years back, but I remembered that you will be given a whole package on Baby Bonus when you are admitted to the hospital for delivery. The application form will be inside and you just need to hand it back to the hospital staff when you are discharged.

But then, this is many years back. Perhaps mothers who delivered recently can confirm this is still the practice?

[MummyThreeStreams]

BigDevil:

mummy2008:

How to apply cda? Was told from ocbc, I need to get approval from mycs

It's many years back, but I remembered that you will be given a whole package on Baby Bonus when you are admitted to the hospital for delivery. The application form will be inside and you just need to hand it back to the hospital staff when you are discharged.

But then, this is many years back. Perhaps mothers who delivered recently can confirm this is still the practice?

I just delivered th Jan and can confirm that this is the current practice. You'll get all the necessary forms in hospital. You'll fill in the forms and send them off to MCYS. MCYS will then send you a letter for you to open your Account. You'll have to bring this letter and the child's birth cert to ocbc or stanchart to open the account.

[ppnqq]

mummy2008:

cherrygal:

You can only open CDA at OCBC or StanChart. OCBC is more aggressive. But take note that the money in the CDA cannot be withdrawn as cash for your use. It can only be used at Baby Bonus approved institutions such as childcare centres or pediatricians.

Thanks cherry. Yes,we should open cda account as we can use it for edu n medical.

How to apply cda? Was told from ocbc, I need to get approval from mycs

If you have lost the forms, you may try calling MCYS to see if they can send them to you again. HTH.

[Kissgurami]

WCW:

is ocbc or standard chartered is better :?

OCBC although I am with Stanchart.. Mine was assigned to Stanchart by default and the account was already opened coz I ignored it for a few years :oops: