Most parents are familiar with the baby bonus scheme that was introduced in 2001, and the scheme was most recently updated in March 2016.
Under the new scheme, parents get S$3,000 added to their Children Development Account. They also have the option of getting up to an additional S$3,000 in a dollar-to-dollar matching scheme. This amount goes up to S$9,000 for the 3rd child and up to S$15,000 for the 5th child onwards.
The money in CDA can be used to pay for childcare centres, kindergartens and special education schools registered with the Ministry of Education, and early intervention programmes registered with the National Council of Social Service. It can also be used to purchase Medishield or Medisave-approved private integrated plans for your children and pay for child-related medical expenses.
This is in addition to the cash gift given to parents that can be used for any expenses — S$8,000 each for the 1st and 2nd child, and S$10,000 each for the third and subsequent child.
Here are the three banks where you can open your CDA account in Singapore and the additional benefits each one offers (the dollar for dollar matching scheme is available at all banks):
• 2% per annum interest on the first S$36,000 in your CDA
• Additional 0.4% per annum interest on Mighty Savers Programme, OCBC’s savings programme for children
• Discounts with OCBC Baby Bonus Card at various merchants (Click here for full list)
• Additional 3% cashback on medical spend with the OCBC 365 Credit Card
• S$108 cash gift into your CDA when you purchase the OCBC MaxMaternity Care maternity insurance plan.
• S$100 cash gift when you purchase OCBC Protection and Endowment Plans
• 40% off OCBC’s PA Protect
• 2% per annum on the first S$36,000 in your CDA. Get 0.05% per annum for the remaining balance above the maximum amount
• Discounts with OCBC Baby Bonus Card at various child-related merchants (Click here for full list)
• One free Grab ride worth S$15
• S$140 cash gift with purchase of selected insurance plans
• 2% per annum interest
• Receive up to S$800 worth of CapitaVouchers with purchase of selected insurance policies
Click here to read about other savings accounts for children in Singapore.