The Child Development Account (CDA) payout refers to the government’s contribution and matching grants deposited into the CDA in Singapore. The CDA is a savings account designed to help parents save for their children’s healthcare and educational needs.
The government provides financial support by matching the amount parents deposit into the CDA, subject to specific caps and limits. This matching grant varies based on the amount deposited and the child’s birth order:
- First and Second Child: For the first and second child, the government provides dollar-for-dollar matching, up to a specified cap.
- Third and Fourth Child: For the third and fourth child, the government offers a higher dollar-for-dollar matching, also up to a higher cap.
These matching grants contribute to the growth of the CDA funds and help parents accumulate savings for their children’s future expenses related to healthcare, education, and other approved uses.
The CDA payout essentially represents the accumulation of government matching grants based on the contributions made by parents into the account. This fund can be used for approved expenses until the child reaches a certain age, usually until they turn 12 years old, though guidelines and regulations may vary and change over time.