Best CDA Account 2023

Is your baby going to be born soon?

It is good to look around for the best bank to open your baby’s first bank account, Child Development Account (CDA).

As the CDA is going to accompany your child for a long time, it’s worthwhile to spend a little time looking around for the CDA that gives the highest interest rate.

Only POSB, OCBC, and UOB are offering Child Development Accounts (CDA).

Best CDA Account 2023

As CDA interest rate is the deciding factor here….

The best bank for CDA account in 2023 goes to the OCBC CDA account!

As you can see below, OCBC offers up to 2.40% p.a. for their CDA account while POSB and UOB only offer up to 2.00% p.a.

And POSB and UOB restrict the high interest to S$50,000, while OCBC has no limit.

Which CDA Account Is Better?

The choice of CDA is yours to make.

All things considered, OCBC CDA has the best deal.

The first S$10,000 yields 1.20% p.a. (which is the highest rate among the three banks) and anything above $10,000 yields 2.40% p.a. (which is again the highest rate among the three banks)

How To Open CDA Account?

You can open your child’s CDA as early as 2 months before EDD (Estimated Date of Delivery) or after the birth registration.

Proceed to https://www.babybonus.msf.gov.sg/ to join Baby Bonus Scheme and to open a CDA.

CDA Benefits From Government

Child Order	First Step Grant	Gov. Dollar-for-dollar Matching	Maximum CDA Benefits
1st Child	S$5,000	Up to S$4,000 each	S$9,000 each
2nd Child	S$5,000	Up to S$7,000 each	S$12,000 each
3rd & 4th Child	S$5,000	Up to S$9,000 each	S$14,000 each
5th Child Onwards	S$5,000	Up to S$15,000 each	S$20,000 each

Use Of Child Development Account

You can use the money in your child’s CDA to pay for expenses at the following Baby Bonus Approved Institutions (AIs):

• Child Care Centres
• Kindergartens
• Special education schools
• Providers of early intervention programmes
• Providers of assistive technology devices
• Hospitals and clinics
• Pharmacies
• Optical shops

So, nope, you can’t use CDA to buy milk powder or diapers!

Funds from the Child Development Account (CDA) can be used starting from the moment your child is born until the 31st of December of the year your child turns 12. Subsequently, the unused funds will be transferred to their Post-Secondary Education Account (PSEA) to finance their higher education.