The interest rate on the Child Development Account (CDA) with POSB (Part of DBS Bank) in Singapore is typically set at 2% per annum.
Here are some key details about the interest rate on the CDA with POSB:
- Interest Calculation: The interest is calculated on a daily basis and credited to the CDA quarterly. This means that the interest earned is added to the account every three months.
- Fixed Interest Rate: The 2% interest rate is fixed and applies to the entire balance in the CDA. It’s important to note that the interest rates on savings accounts, including the CDA, can be subject to changes based on prevailing economic conditions and bank policies.
- Government Matching and Grants: In addition to the interest earned, the CDA also benefits from government contributions, matching grants, and additional incentives, which help the account grow further.
- Tax-Free Earnings: The interest earned in the CDA is tax-free, providing a boost to the savings intended for the child’s healthcare and educational needs.
It’s important to keep in mind that financial institutions may periodically review and adjust their interest rates based on various factors, including market conditions and monetary policies. As such, the interest rate on the CDA with POSB might have changed since my last update.
For the most current and accurate information regarding the interest rate on the CDA with POSB, it’s recommended to refer to POSB’s official website, contact their customer service, or visit a branch directly to inquire about the prevailing interest rates and any recent updates or changes.