The Child Development Account (CDA) will be extended by 6 years to 12 from Jan 31 onwards, the Ministry of Social and Family Development said today. This means that parents will have 6 more years to save up to the cap, as well as use the CDA funds for their child at any of the Approved Institutions (AIs) until they turn 12.
The full press release from Ministry of Social and Family Development is as follows:
At the 2012 Committee of Supply Debate, Deputy Prime Minister Teo Chee Hean, Minister-in-Charge of the National Population and Talent Division (NPTD), announced enhancements to the Child Development Account (CDA) to better support the developmental needs of children.
The CDA is part of the Baby Bonus scheme. It is a savings account where parents' deposits are matched dollar-for-dollar by the Government, up to a cap ranging from $6,000 to $18,000, depending on the birth order of the child.
CDA Extended by 6 Years from Janury 1, 2013
With effect from Jan 1, 2013, the CDA will be extended by 6 years. This means that children born on or after Jan 1, 2006 will continue to have their CDAs open until Dec 31 of the year they turn 12, instead of Dec 31 of the year they turn 6.
Parents will have 6 more years to save if they have not yet saved up to the cap, as well as use the CDA funds for the child and his/her siblings, if any.
Children can continue to use the CDA for expenses incurred at Approved Institutions (AIs) until they reach 12 years of age.
A list of the AIs and approved usage can be found at the following website: http://www.babybonus.gov.sg.
Upon closure of the CDA on Dec 31 of the year the child turns 12, the CDA balance will be transferred to the child's Post Secondary Education Account which is administered by the Ministry of Education.
Where to Get More Information
For more information on the extension of CDA, the public can visit the Baby Bonus website: www.babybonus.gov.sg or call the Baby Bonus Hotline at 1800-253-7707.