Once a child reaches 12 years old in Singapore, certain changes occur regarding the utilization of funds in the Child Development Account (CDA):
- CDA Account Closure: The CDA remains open, but parents or guardians will no longer be able to make additional contributions to the account after the child turns 12 years old.
- Account Accessibility: While contributions cease, the existing balance in the CDA can still be utilized until it is fully exhausted or until the child reaches 12 years and 11 months old, whichever occurs first.
- Approved Uses: The funds in the CDA can be used for approved expenses related to the child’s healthcare, education, and developmental needs, similar to earlier years. However, no additional contributions can be made into the account.
- Transition Period: From the age of 13, the child may move on to use other education-related accounts or financial platforms for their future educational needs. Parents and guardians might consider exploring other savings or investment options specifically designed for education or future expenses beyond the CDA.
It’s important to note that the specific terms and conditions related to the use and closure of the CDA might be subject to updates or changes by the government or the financial institutions involved. Parents or guardians should stay updated with the most recent guidelines and policies regarding the CDA as their child approaches 12 years old to ensure proper planning and utilization of the funds saved in the account.