Child Development Account scheme to be extended by 6 years

SINGAPORE: Parents can continue to dip into a special savings account under the Baby Bonus scheme until their children are 12 years old, instead of six.

From 1 January 2013, their Child Development Accounts (CDAs) will be extended by six years.

The savings account is co—funded by the government for items for children, such as spectacles, prescription medicine and childcare fees.

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.

For instance, if a parent deposits S$500 in the CDA, the government makes a matching contribution of S$500 the month after.

Children born on or after 1 January 2006 will continue to have their CDAs open until 31 December of the year they turn 12, instead of 31 December of the year they turn six.

Parents will have six more years to save if they have not yet saved up to the cap, as well as use the CDA funds for the child and his or her siblings.

The CDA was announced during the 2012 Committee of Supply Debate by Deputy Prime Minister Teo Chee Hean.

It aims to better support the developmental needs of children.

— CNA/xq