Advertisement

Bin Rui

21 Aug 2020

∙

Is it recommended to top up my child's CDA account even after I have utilised the dollar-for-dollar matching benefits?

I mean is it wise to top up so I can make use of the 2% interest rate? Other than this, I can't think of any other benefits.

1

Discussion (1)

What are your thoughts?

Learn how to style your text

Duane Cheng

21 Aug 2020

Financial Consultant at Prudential Assurance Company Singapore

Hi Bin Rui,

For starters, you should max out the government matching dollar yearly. Unless you have excess cash lying around, it would be better to put the excess top ups towards your own use. (e.g. CPF-SA, CPF-MA) You will also qualify for tax relief if you do so!

Eventually over the span of 10 years 30k would have been deposited inside, which will grow in interest yearly in the CDA. Following which, the interest rate will be 2.5% in the PSEA. At no time can you withdraw from your CDA or PSEA account, so if you are looking to grow your own funds you will need to leverage elsewhere!

Hope i was able to answer your queries!

Reply

Save

Write your thoughts

Related Posts

Is it worth to top up up to 3k for government dollar-for-dollar matching CDA account?

Is the government dollar-for-dollar matching of CDA contribution with cap of $9000 for 3rd child an annual cap or one time cap?

How to effectively utilise your child CDA account? Should you deposit more to gain the interest rate?

How much is the maximum top up a parent can top up for a child a year?Also how do you top up in the first place?do you need a cpf account or singpass?what is the procedure to top up your child cpf?

Hi, my wife and I are both 34, and we are expecting our first child at the end of the year. With upcoming health related expenses, are there any credit cards and bank accounts that you can recommend?

Related Products

Standard Chartered JumpStart Account

4.8

782 Reviews

Maximum Interest: 2.50% p.a. for balances up to S$50,000

INTEREST RATES

$0

MIN. INITIAL DEPOSIT

$0

MIN. AVG DAILY BALANCE

DBS/POSB Multiplier Account

4.3

323 Reviews

OCBC FRANK Account

4.7

213 Reviews

Related Posts

Is it worth to top up up to 3k for government dollar-for-dollar matching CDA account?

Is the government dollar-for-dollar matching of CDA contribution with cap of $9000 for 3rd child an annual cap or one time cap?

How to effectively utilise your child CDA account? Should you deposit more to gain the interest rate?

How much is the maximum top up a parent can top up for a child a year?Also how do you top up in the first place?do you need a cpf account or singpass?what is the procedure to top up your child cpf?

Hi, my wife and I are both 34, and we are expecting our first child at the end of the year. With upcoming health related expenses, are there any credit cards and bank accounts that you can recommend?

Advertisement