We are switching to POSB’s Child Development Account (CDA)! Are you?

New parents today must get themselves familiar with the term “Child Development Account” or CDA for short. Since the start of the Baby Bonus Scheme in 2001, all Parents are glad to know that the Singapore government has a scheme to support a parent’s decision to have more children through financial aid. This Baby Bonus Scheme consists of two components – a cash gift and a Child Development Account.

To reap the benefits of the Child Development Account,parents must start an account at one of the appointed banks. Yes! It is different from a normal savings account, as it is only in this account where your savings will be match dollar-for-dollar 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. The Government will do this in the following month, and the offer is good until 31 December in the year your child turns 12 years of age. And naturally, the first bank which we turned to is POSB Bank! 

Daddy and Mummy have been POSB squirrels since we were kids, and with POSB’s large network of branches and ATMs across the island, there is no better Bank that we can think of. As POSB was not an option when Nathan and Nadine were born, we have had to deal with the inconvenience of dealing with different banks during the last few years. There is a certain hassle involved, when you need to walk from bank to bank, if one wants to make transactions personally. Switching over to just one bank certainly makes things easier, as POSB would serve as a one-stop hub, for all of us to settle all our financial matters. Coupled with the additional 1% interest, it makes economic sense for us to make sure everyone switches to POSB (Find out more about this promotion, at the end of the post).  For far-sighted parents, starting the kids with POSB is also expedient, as when parents want to start a POSB Kids account for them, it will make things easier. 

Personally as parents, putting thought into how to maximize our Baby Bonus Scheme has been a great blessing. The extra money has come in useful, as we have made use of the CDA account to pay for all of our children’s preschool expenses (Applicable to all MSF approved Institutions). With the high cost of school fees, this money has certainly helped, as all parents would want to give their best to their kids. If you are in the midst of starting your CDA account, we have some great news for all financially savvy parents out there!

Get an additional early bird 1% interest on top of the existing POSB CDA interest rate for FREE!

As the POSB CDA account only starts in 2015, all you need to do is pre-register your interest. That’s right, if Baby is arriving in 2015, this offer is right up your alley, and all you need to do is to register your interest. Existing parents who switch over to POSB, will also get to enjoy this additional 1% interest benefit, by filling up the POSB forms within the promotion period. .

Do register your interest at www.posb.com.sg/cda before 31 October 2014.

Additionally, stand a chance to win S$5,000^ with your child’s cutest photo, #POSBBabyBonus and a creative caption. Upload your photos to the POSB Facebook page before 31 October 2014! For details, visit www.facebook.com/posb