POSB provides a Child Development Account to its customers in the form of a special savings account. The POSB Smiley Child Development Account will assist you if you want to save towards your child’s development and future. This savings account provides a matching contribution from the government for your baby, for every dollar you invest. You can also earn an interest rate of 2% on this savings account.
The government provides this scheme to help parents bear the expenses involved in raising children. This account rewards you with exclusive deals at participating merchants. This savings account also gives you cash rebate benefits on certain spends. The application process is simple and straightforward.
Features and Benefits: Earn 2% rate of interest
- You can earn up to 2% interest on the Child Development Account balance. You don’t have to maintain any minimum balance to enjoy the interest.
- Besides, you can choose from a wide array of deals at several participating merchants when you sign up for this savings account. There are deals available for both parents and kids.
- This savings account provides dollar-for-dollar matching. For every dollar that you put into this account, the government makes an identical contribution up to the specified limits for each child birth order.
- You can also get a 3% cash rebate on all your local medical spends when you make transactions using a PAssion POSB Debit Card or a POSB Everyday Card.
- You can use your POSB Baby Bonus NETS Card to pay for expenses pertaining to childcare expenses or medical treatments done at Approved Institutions (AIs) under the Ministry of Social and Family Development (MSF). This is applicable to both interbank GIRO and NETS transactions. You can also deposit savings into this account using internet banking.
Promotions: Enjoy S$20 discount at GAIA
Different promotions currently available on this account include:
- Babies Culture Organic promotion: You can enjoy a “Buy one get one” offer for the purchase of non-discounted organic clothing at Babies Culture Organic. You have to use the promo code “DBSCDA” while paying, to get this offer. This promotion will remain valid until 31 December 2018.
- GAIA promotion: You can get a S$20 discount when you spend at least S$100 at GAIA - Pure, Natural, Organic Skincare. You have to use the promo code “DBSCDA20”, and the offer is valid only for a single redemption. This offer will expire on 31 December 2018.
- Mimos Pillow promotion: You can enjoy a 15% discount on the purchase of pillows at Mimos Pillow. You can use this promotion only once and it will remain valid until 31 December 2018.
- Babynatureco.com promotion: When you spend at least S$100 at Babynatureco.com, you can get a discount of S$20. You have to, however, use the promo code “DBSCDA20”. The offer can be redeemed only once. This offer will not be valid after 31 December 2018.
- Hcook promotion: You can enjoy a 30% discount at Hcook when you make a minimum transaction of S$50. You have to use the promo code “POSB30” to enjoy this promotion. This promotion will expire on 31 December 2018.
Interest Rates: Earn 2% p.a.
The rates of interest currently applicable on this account are illustrated in the table below:
|Birth order of your child||Rate of interest (p.a.) & maximum amount|
|First and second child||2% p.a. (up to a maximum amount of S$12,000)|
|Third and fourth child||2% p.a. (up to a maximum amount of S$24,000)|
|Fifth child or more||2% p.a. (up to a maximum amount of S$36,000)|
|Balance exceeding the maximum amount||0.05% p.a.|
Are You Eligible to Open This Account?
You must be one of the following to apply for this savings account:
- Singapore citizens and permanent resident trustees.
- Foreign trustee.
- Existing Child Development Account trustee.
You can also open this account for the member if:
- You are the legal guardian, or the father or mother of the member, or have been nominated as a trustee by the legal guardian or parents of the member;
- You are not bankrupt;
- You are 18 years old or more and
- You possess all the documents needed by the Children Development Account Legislation.
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If your baby is born as a Singapore citizen and if he/she enrolls in this scheme within one working day from the day of registration of birth, the government will have all the required details of both your child and you. You however, have to fill a form online and also give your bank details to get the cash gift.
CDA trustees and third-party holders of bank accounts for the cash gift have to additionally provide their personal details and bank account details.
Foreign trustees have to submit and get the following documents approved:
- Submit an Authorisation Letter (original) from MSF.
- Submit a copy of the NRIC/Passport of the trustee.
- Submit a copy of the Birth Certificate of the child or the passport of the child.
How to Apply for POSB Smiley Child Development Account
You can apply for this savings account in one of the following ways:
- If you are a Permanent resident trustee or a Singapore Citizen, you can apply online.
- Foreign trustees can apply directly by visiting any POSB Branch.
- Existing Child Development Account trustees can make a transition to a Smiley Child Development Account online.
- Use internet banking to view transactions.
- Go to “Services” option and click on “View Account Summary” to see payments made on the Child Development Account.
- Use cheque, cash, or a standing order.
- Transfer funds via local ATMs or using internet banking.
Q. Will I be able to open a new Child Development Account with any of CDA banks as a Singaporean or a permanent resident trustee?
A. Yes, you will have to access the Baby Bonus Online webpage. You can open a new Child Development Account or change a CDA bank here.
Q. Can I open a new Child Development Account as a foreigner or a third party trustee?
A. You will need a letter from MSF authorising you to open a new Child Development Account with the chosen bank if you’re a foreigner or a third party trustee.
Q. Can I change my CDA bank if I’m a Singapore citizen?
A. Yes, you can login with your SingPass details and place a request for change of the CDA bank by utilising the "Change CDA bank" facility.
Q. Can I change my CDA bank if I’m not a Singapore citizen?
A. If you’re not a Singapore citizen, you have to place a request in writing for change of the CDA bank. This request must be submitted to [email protected] Once your request is approved, you will receive an authorisation letter using which you can change your CDA bank.
Q. How long will it take for the funds to be transferred to my new Child Development Account from the previous CDA?
A. Funds will be transferred within three weeks to the new Child Development Account.
Q. Can I view transactions on my Child Development Account?
A. Yes, you can view transactions on your Child Development Account in one of the following ways:
Q. How can I make savings on the Child Development Account?
A. Savings can be made in the Child Development Account in one of the following ways:
Q. When will I receive the matching contribution from the government in the Child Development Account?
A. Yes, you will receive the matching contribution from the government within two weeks of depositing your contribution in the Child Development Account.
Q. If I change my name or my child’s name, do I have to inform my CDA bank and MSF?
A. Yes, if you change or have changed either your name or the name of your child, you have to send an email containing all the relevant documents such as the Certificate of Extract from Registry of Births or deed poll copies to [email protected] If you are a CDA trustee, you have to take these documents to your CDA branch.