Investing the Funds in Child Development Account
Funds in the Child Development Account can be used for Singapore Dollars fixed or time deposit account investment, but before you can make this investment, you must seek approval from the Ministry of Community, Youth and Sports and the Singapore Dollars Fixed or Time Deposit Account must be offered by OCBC Bank and Singapore Standard Chartered Bank only.
To open the account for this investment, parents can contact the OCBC bank and Standard Chartered Bank directly.
Parents should take note of the followings before making the investment:
- Interest earned, together with the full amount deposited in the fixed and time deposit account, must be returned to the Child Development Account upon the expiry of the term of the account or before CDA is closed when your child turns 13.
- The bank may impose a penalty fee for premature withdrawal or termination of the investment account. However, the funds in Child Development Account can not be used to pay for any penalties due to the trustee's premature withdrawal or termination of the fixed or time deposit account. The penalty will be recovered from the trustee directly. Parents are advised to contact the bank for the detailed information.
It takes a village to raise a child !
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Unused saving in the child development account will be transferred to post-secondary educational account
For legitimate child, the parent tax rebate is to be claimed in the year immediately after the birth of the child
