Child Development Account (CDA): Who Qualifies and What You Get
Learn how the Child Development Account provides government matching for your child's education and healthcare expenses in Singapore.
The Child Development Account (CDA) is a savings scheme designed to help families build up funds for a child's future through government matching.
Who it's for
This scheme is specifically available for Singaporean children. It is intended to support the growth and development of children within the country by providing a financial cushion for essential needs.
What you get
The primary benefit of this scheme is the government matching provided for the savings you put into the account. When you deposit money into the account, the government adds matching funds to help grow the balance. These matched funds are designated to assist with the costs of two main areas: healthcare and education. This ensures that as the child grows, there is a dedicated pool of money available to cover important developmental milestones and academic requirements.
What it costs you
While the matching is a benefit, there is a requirement to participate. To access the scheme, you must open a dedicated bank account through one of the participating financial institutions. Currently, you must choose to open the account with either DBS, OCBC, or UOB. This involves following the specific account opening procedures required by these banks to ensure the funds are correctly categorized for government matching.
The catch to know
It is important to understand that this is not a general-purpose savings account. The funds held within the account are restricted to specific uses. You must ensure that your spending aligns with the intended purpose of the scheme, as the money can only be used at approved institutions. You should verify that a provider is an approved institution before attempting to use the account funds.
How to apply
- Decide which participating bank you wish to use: DBS, OCBC, or UOB.
- Complete the necessary paperwork or digital application to open the account for the child.
- Once the account is active, you can begin making deposits to trigger the matching process.
- Use the official portal to manage the account and track your progress.