Child Development Account (CDA)


CDA is a special savings account for your child and the money can be used at baby bonus approved institutions.


How to receive the money?

Once your child is eligible, he/she will receive the CDA First Step Grant of $3000. This amount will be credited in your child’s account when you open a CDA account at any one of the local banks: DBS/POSB, OCBC or UOB.


The government will co-match dollar for dollar

money that parents deposit into the CDA up to the matching caps listed below. Funds can be transferred into the CDA account until 31 December of the year the child turns 12.

*Applicable for eligible children who are born, or have an estimated date of delivery on or after 24 Mar 2016.
**Applicable for eligible children who are born, or have an estimated date of delivery, on or after 1 Jan 2021. If the child is born before 1 Jan 2021, the maximum Government co-matching is $3,000.

Children can continue to use the CDA for expenses incurred at Approved Institutions (AIs) until they reach 12 years of age.


Remember that there is no need to rush to deposit all the funds at one go. However, there is a 2% P.A for savings in the CDA. So it does make sense to top-up more earlier.


Should I top up my Child’s CDA early?


If you can afford to, parking more into your child’s CDA account means you are able to capitalize on the higher than usual interest rate given by the bank. Putting in the full $3000 means a total of $6000 contributed to the account when matched by the government.


What if I don’t use the CDA money after my child turns 12 years of age?

If you are not able to use all money left in your child’s CDA account, don’t worry, this money will not be chiong-gonged (confiscated). All the balance will be automatically transferred to their Post-Secondary Education Account (PSEA). And by 30 years, any remaining money in the PSEA will be transferred to his CPF Ordinary Account (OA).


*Children of unwed parents can now receive the CDA benefits.






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