Choosing a CDA account for our twins

CDA account

Our twins have arrived! It is time for us to select the bank for setting up our Child Development Account (CDA) again. We did some fact-findings on the latest CDA accounts and thought that it is also useful to share our findings with anyone else interested.

CDA account

The CDA account is a special saving account which will be established under a child’s name. The monies in the account can be used for the child’s educational and healthcare requirements. See the Baby Bonus website for more information.

We can choose to establish the account with UOB, OCBC or POSB. Once the account is set up, the Singapore government will present a $3000 gift deposit into the account. This is known as the CDA First Step.

There is no need for us to deposit any funds into the account prior to receiving the CDA First Step. Once we start to deposit savings into the account, the government will match dollar-for-dollar contribution. In our case, we can get up to $9,000 per child from the government for our 3rd and 4th child. Therefore we will receive in total $24,000 under the Baby Bonus Scheme (or $12,000 per baby). Looks like a lot of money, but unfortunately, in my case, I had a complicated pregnancy and the $24,000 is not sufficient to fully cover my medical cost incurred during pregnancy, weep weep. Click here for my earlier post if you are keen to know why. See MSF website for details of grants for families with 1 or 2 children, or for families with more than 4 kids.

Comparing the CDA accounts

Key features of the CDA accounts offered by the 3 Singapore banks are as follows.

Features  OCBC
UOB POSB
Interest Rates2% p.a.   2% p.a.  2% p.a
Fees Nil  NilNil
Additional Perks
Merchant Collaborations Up to 50% discounts with OCBC Baby Bonus Card.
Examples of participating merchants:
- MPH
- Mindchamps
- Kinderland
- Pororo Park
Click here for details.
-Tie-up with more than 40 merchants.
Examples of participating merchants:
- Foxysales. com
- GAIA online
- Pediped online
- BottomSlim
- Mothercare
- Nature's Farm
- Pororo Park
- Spring Maternity
Click here for details.
Credit Card Tie-Ups OCBC 365 Credit Card
- 3% cashback for medical spend transacted over the counter (including dental and hospital), instead of 0.3% for a standard OCBC 365 credit card
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Other saving account tie-upsOCBC Mighty Savers Programme
- Additional CDA Advantage Bonus Interest of 0.40% p.a.
--
Insurance Tie-Up
Cash gift and premium discount for insurance policy purchased (both parent and child eligible)Purchase an insurance policy and receive up to $800 worth of CapitaVouchers.-

Information is updated as of 10 Feb 2017.

See the banks’ websites for further details:

I have selected the bank to open the CDA accounts based on my practical needs but I am not revealing here as my decision is potentially a sensitive topic for my own reasons. You may prefer POSB for the retail perks offered, or UOB/OCBC if you are more keen on the financial planning aspect.

Hope my research is useful to you. Feel free to let me know if there is anything I miss out.

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This is not a sponsored post.

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3 Replies to “Choosing a CDA account for our twins”

  1. Congratulations! 🙂

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