SINGAPORE - The Ministry of Social and Family Development has appointed DBS Bank and United Overseas Bank (UOB) as new managing agents for the Child Development Account (CDA).
Together with existing CDA bank OCBC, the move will provide parents with more banking choices when it comes to applying for an account.
The CDA, which comes under the Baby Bonus scheme, is a special savings account where parents' deposits are matched by the Government dollar-for-dollar up to a cap.
The cap depends on the birth order of the child and can be used for a range of services, such as education expenses and purchasing prescription medicine and selected health-care items.
Standard Charted Bank is also a CDA bank but it will no longer be accepting new CDA applications. It will manage its existing CDAs till December 2018.
A new Baby Bonus Online (BBO) system will also be launched after the middle of July. This will allow parents to submit their CDA applications online, update their personal information or switch CDA banks using their SingPass.
According to the Ministry, there are currently 280,000 active Baby Bonus CDAs.
Those with inquiries can e-mail MSF_Babybonus@msf.gov.sg or call the toll-free hotline on 1800-2537707 (weekdays, 8.30am to 6pm).
Frequently Asked Questions
1. When will the new CDA banks start their services?
DBS and UOB will start offering CDA services on July 13, 2015. If you wish to open a CDA with either of the new CDA Banks, you can apply through Baby Bonus Online (BBO) at Babybonus.msf.gov.sg/parent after mid-July 2015.
2. How will I know which bank suits me better?
In considering which bank to open a CDA with, you should read through and be comfortable with the chosen bank's terms and benefits. As their terms and benefits may change from time to time, do contact the banks to confirm their terms and benefits before making a decision.
3. Do I have to pay for the transfer of my child's CDA to another bank?
There will be no charges. But you may have to forego promised benefits, privileges or gifts, depending on the terms and conditions you had agreed with your existing CDA bank. The banks are required to inform you of any such terms and conditions when you open a CDA with them.
4. My child's CDA is with SCB and he will be 12 years of age in 2018. Is there a need for me to switch to another bank?
If your child turns 12 years of age before or in 2018, you can continue your child's CDA with SCB. The balance in his CDA will be transferred to his Post-Secondary Education Account (PSEA) in the year he/she turns 13.
5. My child's CDA is with SCB and he will be below 12 years of age by 2018. What should I do, since SCB will cease to offer CDA services in December 2018? Can I switch to another bank before then?
You should transfer your child's CDA from SCB to DBS Bank, OCBC or UOB before Dec 2018 using the Baby Bonus Online (BBO) system. You can take your time to consider and make the switch any time before December 2018.
6. How do I change bank for my child's CDA after mid-July 2015?
You can log on to the Baby Bonus Online with your SingPass at Babybonus.msf.gov.sg/parent, using the "Change CDA Bank", to change bank for your child's CDA.