Once a child reaches 7 years old in Singapore, the Child Development Account (CDA) continues to exist, but certain changes in usage and contributions come into effect:
- Government Co-Matching Contributions: The government stops providing dollar-for-dollar matching for CDA contributions. The co-matching ceases at the end of the child’s 6th year, which means up until the day before the child turns 7.
- Remaining Balance: Any remaining balance in the CDA can still be utilized for approved expenses related to the child’s education, healthcare, and childcare needs. These expenses include things like preschool fees, medical expenses, and educational materials. The CDA funds remain available for use until they are exhausted or until the child turns 12 years old, whichever comes first.
- Additional Deposits: While the government stops providing co-matching contributions after the child turns 7, parents or guardians can continue to make deposits into the CDA until the child reaches 12 years old, subject to certain limits.
- Transition to Education Savings: As the child grows older and progresses towards education, the CDA might serve as a platform to help cover educational expenses like school fees, books, and educational programs.
It’s important to note that the exact details and policies regarding the CDA might be subject to changes by the government or the financial institutions administering the CDA scheme. Parents or guardians are advised to check the most recent guidelines and terms regarding the usage and management of the CDA as their child approaches 7 years old and beyond.
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