The Baby Bonus Child Development Account (CDA) is a special savings account that can be opened with OCBC or Standard Chartered Bank for each eligible newborn where the Singapore Government will match the savings amount dollar-for-dollar up to a cap of S$6,000 for 1st and 2nd child, S$12,000 for 3rd and 4th child and S$18,000 for 5th child and beyond for children born on or after 26 Aug 2012. The Government has been giving out such cash incentives to encourage procreation among the citizens ever since 2008.
OCBC is offering interest rates of 0.5% p.a. for the first S$20,000 deposit and 0.8% p.a. for amounts above S$20,000. If you can commit to saving at least S$50 per month, you can also sign up for CDA Extra account where you will earn 0.8% p.a. right from the beginning.
If you have a monthly family income of less than S$4,500 and deposit a minimum of S$50 into the CDA account over a period of 6 months, you will receive co-savings of S$250, that is S$100 from OCBC and $150 matching contribution from the Government, provided that the co-savings cap has not been met.
Over at StanChart, they are offering 0.5% p.a. on deposits in the CDA account and 0.3% p.a. above board rates for Singapore Dollar Time Deposits using CDA funds. Also, 0.3% p.a. interest on one designated family savings account under the name of the Trustee of the CDA account holder.
Please refer to the Singapore Government's Baby Bonus, OCBC and Standard Chartered Bank websites for more details.
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