As part of the Baby Bonus Scheme, the CDA is a special savings account for all eligible Singapore Citizen children! It can be opened at DBS, OCBC or UOB. The CDA’s main aim is to assist families defray some financial costs of raising children in Singapore. Believe it or not, the Government will deposit a total of $3,000 into the CDA without any strings attached at all! Subsequently, parents who have the financial ability to save into the CDA will enjoy double their savings as the Government generously provides dollar-for-dollar matching contributions up till the child’s eligible contribution cap (up to $3,000 for the 1st and 2nd child, up to $9,000 for the 3rd and 4th child, and up to $15,000 for the 5th child and above)! The CDA can then be used to offset a list of approved products and services for the child or their siblings. The CDA First Step $3,000 top up is currently available to any Singapore Citizen child born from 24 Mar 2016 onwards!
It actually is a really big deal! Especially due to the ongoing COVID-19 outbreak, many families might have lost their stable financial income with the reduction of many employment opportunities and increased retrenchment measures in companies. Thus, CDA First Step of $3,000 without any prior deposit required is an aid by the Government that definitely shouldn’t be missed. While your current financial situation might be okay, what’s better than funds that can offset approved educational and healthcare expenses? Even if you do not need the funds right now, there’s no reason to not set up a CDA for your child if they are entitled to it!
If you’re one of the families who have yet to create a CDA for your child, do not worry as Uplifting Pupils in Life and Inspiring Families Taskforce (UPLIFT), an inter-agency task force comprising Ministry of Education (MOE), Ministry of Social and Family Development (MSF), Ministry of Culture, Community and Youth (MCCY), Ministry of Finance (MOF), Early Childhood Development Agency (ECDA) and self-help groups have been set up to increase outreach efforts to support young children from disadvantaged families especially during this difficult economic period.
If you didn’t already know, UPLIFT has realised that many parents are unaware or have not been properly informed about CDA, hence had not created a CDA. But fret not, because UPLIFT has tapped on community networks to contact families who have children who are eligible to create CDA but have yet to do so! Families will subsequently be educated on the usage of CDA to pay for preschool fees and medical bills at Baby Bonus Approved Institutions (AIs). AIs include kindergartens, special education needs schools, childcare centres, hospitals, clinics and more.
Though outreach matters were suspended during the Circuit Breaker period, as of 23 June 2020, outreach efforts to more families are in the midst of happening with the awareness of national safe management measures in place well.
All in all, the CDA is Definitely Worth Creating (if you’re eligible). As a tuition agency in Singapore, FamilyTutor hopes that if you haven’t already tapped on CDA as a resource during this difficult period, you will now! Our children’s welfare is our number one priority, and creating a CDA for your child is definitely one good way to maintain that welfare of our precious ones.
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