Child Development Account to be extended by six years starting 2013
From January next year, parents can continue to dip into a special savings account under the Baby Bonus scheme until their children are 12 years old.
The Child Development Account (CDA) - a savings account where parents' deposits are matched by the Government- used to be valid for a child's first six years. But from next year, it will be extended by another six years.
This extension comes after a recent move in July to broaden its usage. Parents used to be able to only use the money to pay for certain items, such as childcare fees and approved insurance coverage. However, since July this year, they have been able to use the CDA funds for a wider range of services, such as to buy spectacles or prescription medicine and selected health-care items from pharmacies for their children.
The amount of money the parents deposit in the CDA is matched dollar-for-dollar by the Government up to a cap - ranging from S$6,000 to S$18,000, depending on the birth order of the child.