It’s recommended to open a Child Development Account (CDA) in Singapore as soon as possible after the child’s birth or after you receive the child’s citizenship or permanent residency status in Singapore. The CDA is a savings account intended to help parents save for their child’s future educational and developmental needs.
Opening the CDA early offers several advantages:
- Maximizing Government Contributions: The government provides dollar-for-dollar matching for parental contributions to the CDA, subject to certain limits. Starting the CDA early allows you to benefit from these matching contributions for a longer period.
- Accumulation of Savings: By opening the CDA early, you have more time to save and accumulate funds, providing a financial cushion for the child’s future educational and healthcare expenses.
- Planning for Child’s Needs: Having a CDA in place early enables parents to plan and prepare for their child’s education, healthcare, and developmental needs as they grow.
The CDA can be opened at various participating banks or baby bonus-approved institutions in Singapore. To open a CDA, you typically need the child’s birth certificate and the parents’ or guardians’ identification documents.
Opening the CDA early allows parents to take advantage of the government’s co-matching contributions and provides a platform for consistent savings towards the child’s future needs.