AMA SG Budget Babe
Asked on 14 Aug 2018
You will have to determine your budget and comfort level. I’m afraid no one has the ability to determine that for you.
If you did set up the CDA, that is one avenue that you should not forgo.
Endowments, ILPs or Regualr Saving Plans from banks are some of the available options.
Actions leads to reactions/consequences.
Choices available depends on the knowledge you hold.
Get more information to increase your choices and then you will be able to make a decision that is best for you.
Depends on what you would afford!
I would first max out the CDA. Then park in my own high-yield bank saving account if I still have money left to earn the bonus interest on. If not, CIMB FastSaver is another good place. Or short-term fixed deposits / endowment plans by local insurers eg. http://www.sgbudgetbabe.com/2017/10/better-than-fixed-deposit-fwd-202.html
or the easiest and pretty risk-free could be Singapore Saving Bonds :)
I personally would invest the money for my child as well, but this depends on your own investment skill, risk appetite and time.