Other than bringing a newborn into the family, what else is exciting? Naturally, it makes people smile and rejoice. Furthermore, it’s important to commemorate the beginning of a new life. How about creating a CDA account to commemorate it? With a Smiley Child Development Account, you may celebrate the birth of a baby specially.
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Smiley CDA: What is it?
It is a unique savings account that is opened with specific banks, such as DBS/POSB Bank in Singapore, for a newborn kid. Up to the dollar-for-dollar corresponding cap, the federal government will match each dollar you put in the CDA.
The main advantages of Smiley CDA
Among the main advantages of having a POSB Smiley CDA account are:
A competitive interest in
For SGD 50,000 and less, you can earn interest of up to 2 per cent annually.
Obtain the CDA First Step Grant.
You will be eligible for a First Step award of up to 3000 SGD upon opening a POSB Smiley CDA. It applies to infants delivered on or after March 24, 2016. If parents keep saving in the CDA, the government will match their contributions dollar for dollar. The CDA will typically be credited to you in two weeks.
The government’s dollar-for-dollar contribution
The government will contribute dollar for dollar to any savings the child’s parents make to the CDA account, up to the following maximum:
- First child: Up to 3,000 SGD per child, plus the CDA First Step Grant, for a maximum CDA benefit of 6,000 SGD.
- Second child: In this case, the CDA benefit, including the CDA First Step Grant, can reach 9,000 SGD, with the dollar-for-dollar matching ceiling set at 6,000 SGD per kid. It should be noted, however, that it only applies to infants born on or after January 1, 2021, or those due at a projected date.
- With the CDA First Step Grant included children ages three and four can receive up to 9,000 SGD each, for a maximum CDA benefit of 12,000 SGD.
- From the fifth child onward, the CDA benefit, including the CDA First Step Grant, can reach up to 18,000 SGD, with the dollar-for-dollar matching ceiling set at 15,000 SGD per kid.
Take advantage of special merchant offers.
A POSB Baby Bonus NETS Card, which provides fantastic benefits and discounts for the family at different retailers, is available to you. Exciting savings are available on baby health goods, preschool registration fees are waived, and children’s books and toys are available.
A CDA: How do I apply?
To apply for CDA, visit the Ministry of Social and Family Development’s (MSF) Baby Bonus website.
To apply:
Step 1: Use Singpass to access the website.
Step 2: After entering your information, you will be prompted to complete an online form and click “Submit.”
Step 3: Await the processing and approval of your application. The NETS card and the information for your new account will be sent to you.
When parents sign up for the Baby Bonus Scheme, they must designate someone, who may be a third party or one of the parents, to:
- As a designated account holder, get benefits including the CDA First Step award and a dollar-for-dollar donation.
- Act as a trustee and oversee the CDA.
A CDA trustee may be the designated recipient of the monetary gifts. A different individual who is at least eighteen years old and financially stable may serve as a trustee, nevertheless.
Accepting the terms and conditions of the chosen CDA bank is all that is required if either parent is a CDA trustee. A letter of authorization must be obtained before a third-party administrator can open a CDA account with DBS/POSB. For this reason, the trustee ought to provide:
- The original authorization letter
- The passport or NRIC
- A copy of the child’s birth certificate or Singapore citizenship certificate, whichever is relevant
You can open a CDA account with DBS/POSB Bank after taking the factors mentioned above into mind.