Should I use the CPF SA to pay for my kid's education fees?

You can't use CPF SA to pay for kid's education. It is the CPF OA which can be used.

In my opnion, you can consider getting an education loan for your daughter if you are confident you can save enough to repay her loan in less than 1 year after her graudation. This is because many education loan provided by banks are interest free during their years of study and the interest adds up when they graudate. So look for bank loans which are interest free during the study years and has no early repayment charge.

The risk for CPF OA is that the interest of 2.5% is stil calcualted during your daughter's study year and she has to pay it back (including the interest) to your CPF account

Congratulations!

I think trying to maximise SA for your children's education make sense. Having the interest compound at a higher rate (4% for now) is a good strategy.

If your child is doing tertiary education in Singapore, he/she can apply for the CPF education scheme instead. https://www.cpf.gov.sg/Members/Schemes/schemes/...

By withdrawing your money from OA, and having him/her pay you back eventually, you can still hold the option of keeping your cash within in CPF, which acts as a high yielding interest rate piggy bank. The 2.5% interest cost is paid back to you anyway, so the wealth is still kept within the family, and you can pay her back in cash.