The Child Development Account (CDA) is part of the Baby Bonus or Child Development Co-Savings (Baby Bonus) Scheme, which aims to help families with the costs of raising children. The CDA also encourages parents to save for their children’s developmental needs. The Government matches parents’ deposits into the CDA dollar-for-dollar, subject to a cap based on the child’s birth order. Total Baby Bonus Benefits for Child born on or after 17 August 2008 are shown as below:
More Approved Institutions
Currently, CDA funds can be used to pay for expenses made at Approved Institutions (AIs) registered with MCYS. These include fees at child care centres, kindergartens, special education schools and early intervention programmes; medical-related expenses at registered clinics and hospitals; as well as MediShield or Medisave-approved private integrated insurance plans.
From 1 July 2012, parents will be able to use CDA funds to make purchases on healthcare-related products or services at licensed pharmacies, optical shops and providers of assistive technology devices. Parents can use CDA funds at these outlets to pay for :
- Medication prescribed by a medical practitioner or pharmacist, surgical products, over-the-counter medication, dermatological products or vitamins and health supplements at pharmacies licensed by the Health Sciences Authority;
- Optical appliances, optical-related eye care products and services (e.g. spectacles, eye tests) at optical shops; and
- Assistive technology devices or accessories (e.g. hearing aids, Braille laptops, wheelchairs) as certified by a medical practitioner, allied health professional or social worker for the child’s use. CDA funds can also be used for the rental or loan of such devices or accessories.
CDA Extended by 6 Years from 1 January 2013
With effect from 1 January 2013, the CDA will be extended by 6 years. This means that the CDA of a child will remain open until 31 December of the year the child turns 12, instead of 31 December of the year the child turns 6. MCYS will announce more details on the extension closer to the implementation date.
Like this article? Subscribe for More
Simply leave your email for more money and investment tips.