Give a CDA Account as a Gift to Your Infant – Find Out How

A new baby increases the happiness of a family. A newborn represents optimism and a fresh start after months of waiting. A new baby’s arrival is a significant event that should be celebrated. To commemorate it, creating a CDA account is one way. You can start your Smiley Child Development Account and welcome a new family member.

Don’t know what it is? I am here to help you out! So, keep on reading this blog till the end to learn more, and thank me later…

Learn More About the Smiley CDA

A Child Development Account (CDA) is a special savings account for children’s future education and development expenses.

It’s like a dedicated piggy bank that helps families save for their child’s needs, such as tuition fees, extracurricular activities, or even future skills training.

If you are a parent, you should consider getting a CDA for your child. And that is because they can:

• Encourage early saving and planning
• Provide a dedicated fund for child development
• Offer potential tax benefits or government matching funds
• Help ensure a child’s future opportunities and success

A Smiley CDA is a unique savings account that can be started at birth with certain banks, such as DBS/POSB Bank in Singapore.

Additionally, a CDA allows parents to put savings aside for their child since it matches every dollar deposited to the designated co-matching ceiling with another dollar.

What Advantages Come with Becoming a Smiley CDA Owner?

Opening a POSB Smiley CDA account offers several advantages. Wondering how opening a CDA for your child can benefit them? I have you sorted!

The benefits of having a Smiley CDA for your toddler are as follows: 

1. Receive the CDA First Step Grant.

Firstly, when you open a POSB CDA and open a CDA, the government will provide your child, if born after February 14, 2023, with a $5,000 CDA First Step award.

Additionally, the government will match dollar for dollar every amount you deposit into your CDA from the time of your child’s birth until the end of their 12th year, up to the maximum amount!

Your child’s Post-Secondary Education Account (PSEA) will receive any unused funds from their CDA up to a certain amount. They will forward the remaining funds, if any, to the CSA.

Moreover, these funds can be used to cover the expense of your child’s post-secondary education in Singapore as well as the education of any siblings.

Once your child has completed secondary school in Singapore, you can use these funds to pay for your child’s education as well as any siblings’ education. 

2. Dollar for dollar, the Singaporean government’s contribution  

Secondly, parents can save money in the CDA account, which the government will match up to the specified co-matching caps, dollar for dollar:

• First child: A total of 9,000 SGD in CDA benefits, including the CDA First Step Grant, are yours to receive, with government funding of up to 4,000 SGD per kid. 
• Second child: the permitted dollar-for-dollar matching contribution is 7,000 SGD per kid. The CDA First Step Grant is included in the 12,000 SGD total CDA benefit. However, the only eligible children are those born on or after January 1, 2021, or at an estimated date of delivery.
• Third and fourth children: You can receive up to 5,000 SGD for your third and fourth children. Up to 12,000 SGD will be the overall CDA benefit, which includes the CDA First Step Grant. 
• From the fifth child onward: Lastly, the CDA First Step Grant is included in the overall CDA benefit of 20,000 SGD, with a co-capping ceiling of up to 5,000 SGD per child.

3. Competitive interest

You can earn interest on your CDA account of two percent annually for amounts under SGD fifty thousand. 

Take Advantage of Special Merchant Offers

You will get a POSB Baby Bonus NETS Card by owning a DBS/POSB CDA account. At many family-friendly retailers, you may take advantage of fascinating and alluring discounts and benefits.

For example, there is no registration cost to enroll your child in preschool, and you may take advantage of significant savings on infant health items, children’s books, and toys.

A Comprehensive Guide to CDA Applications

You must visit the Ministry of Social and Family Development’s Baby Bonus webpage to determine if you qualify for CDA (MSF).

Additionally, you are eligible for it up to two months before the baby’s birth if you meet the requirements.

To make an application, here are some of the things that you need to do:

Step 1: Use your Singpass to access the Baby Bonus webpage. 

Step 2: You must complete an online form with your information and hit “Submit.” This can be done two months in advance of the delivery or while you are giving birth in a hospital. Besides, it only takes five to ten minutes. 

Step 3: You will get a communication from the bank with information about your new account, which has a 5000 SGD balance, as soon as your CDA application has been completed and accepted. Additionally, they will deliver a NETS card to your residence in your child’s name. 

Furthermore, the bank will ask you to designate a person, who may be one of you or a third party, as you enroll in the Baby Bonus Scheme to: 

• Acquire the CDA First Step award and the dollar-for-dollar payment from the government. 
• Hold trusteeship and oversee the CDA.  

Aside from the individual nominated, any other solvent adult above eighteen may serve as a CDA trustee. 

It’s time to register a CDA account with PSOB if you are expecting a baby, considering the previously mentioned considerations.

Bottom Line

In conclusion, having a CDA shows you care about your child’s future. It shows that you want to give them the best possible start!

In case you were trying to find more information about having a CDA account for your child, I hope that this blog has provided you with enough information. If you have any other questions about the same, please feel free to let me know.

Leave your comments in the box below at the bottom of the page. And I will be there to answer them all for you.

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