Why OCBC CDA (Child Development Account) is clearly the winner (for now)!

When baby Isaac was born, we looked into the offerings by OCBC, UOB and POSB for a CDA (Child development account). As he is our first child, we will be entitled to a $3,000 First-step grant and $3,000 one-for-one matching to his CDA.

Funds in this account can be used for a variety of expenses especially child care centre fees. Hence, we were quite comfortable putting in some money for him there.

Take note of the CDA First Step Grant and birth order of your child to know your bonus.

Summary of the CDA from the 3 banks (Updated Jan 2019)



OCBC CDA

UOB CDA

POSB CDA

Interest rate on CDA account

2% for the first $36,000. 0.05% for amounts in excess

2% interest with NO CAP

Enjoy 2% p.a. interest with no minimum required on CDA balance!

Promotion Gifts

Up to 50% discount at participating merchants with the OCBC Baby Bonus Card


3% cashback for over-the-counter medical, dental and cord blood banking transactions with minimum S$600 monthly spend on OCBC 365 card, capped at S$80 a month


S$100 credited into your OCBC CDA with purchase of Endowment Plan (annual premium between S$3,600 to S$11,999) or Protection Plan (annual premium above S$1,200)


S$108 credited into your OCBC CDA with purchase of MaxMaternity Care protecting expectant mothers (from 13 weeks) against pregnancy related complications.

Purchase an insurance policy to protect yourself or your child and receive up to S$800 worth of CapitaVouchers*.

Get 3% Cash Rebate on Medical Spend 

Enjoy cash rebate on on-site medical services made at hospitals, medical and dental clinics in Singapore with your PAssion POSB Debit Card.


Exclusive Merchant Deals

Enjoy exciting deals at our partner merchants with your Baby Bonus NETS card.


Sign up for POSB Smiley CDA until 31 Jan 2019, and enjoy a free Singapore Airlines ("SIA") infant ticket on economy class (worth up to S$300) to any destination.

Kids (CASH) savings account

Up to 0.8% per year interest on Mighty Savers® Account opened jointly between parent-and-child, with S$50 monthly deposits and no withdrawals

Take home OCBC'S limited-edition customization pixel art gifts when you deposit S$500 or more by 28 February 2019. While stocks last!

Plan now and enjoy double cash reward of up to S$4,000 when you purchase any selected endowment plans. Valid until 31 March 2019.


Earn daily interest with No minimum deposit and fall-below fee until your child turns 21 years old. Waiver of coin deposit fee until your child turns 16 years old.

*Limited to first 1000 pieces per calendar month at the coin deposit machine

Attractive account opening gifts:

▪A S$1 gift deposit

▪Free 6-month POPULAR Bookstore Student Card Membership

Deposit S$2,000 or S$20,000 Fresh Funds and maintain it for a 6-month period (1 March – 31 August 2019) and receive an S$18 or S$180 Ang Bao.

Promotional Period Till

28/02/2019 (Limited edition gift)

31/03/2019 (Buying an endowment plan)


28/02/2019 (Free Ang Bao)

I'm not really into promotional gifts

There are insurance freebies and discounts for endowment plans that I don't quite fancy personally.

I must say, the free Singapore Airlines ("SIA") infant ticket from POSB did catch my eye though haha!

ALL are 2% p.a interest now

Today, ALL the CDA accounts offer the same 2% p.a which is more than most fixed deposits.

We were sure that we wanted to tap on it and have budgeted about $30k. From my calculations, it should roughly be enough to last for school fees to K2. 

In my opinion, UOB's and POSB's offering of 2% interest with NO CAP is good but not of much use. There is little reason to put too large an amount into CDA because funds there cannot be freely withdrawn. It can only be used for education and healthcare mainly. 

Only OCBC has a cap of $36,000 which I'm willing to accept in view of the savings account interest which I'll mention below.

OCBC's Mighty Savers Program makes the OCBC CDA a WINNER!

Source: https://www.ocbc.com/personal-banking/accounts/mightysavers.html


This may be useful: OCBC CDA HOTLINE
Call the Baby Bonus Hotline at 1800 253 7707 (Monday to Friday, 8.30am to 5.30pm) to find out.

What we have been doing is to do the minimal $50/m giro to his Mighty Savers Program. This qualifies his savings account to get 0.8% p.a.

While 0.8% p.a today is not a lot, this savings can still be freely withdrawn from the parent's IBanking access. Hence, we're kind-of using this as a emergency cash holding for the family. All the ang bao's have been going there over the last 2 years too.

I'm actually surprised POSB and UOB do not have an attractive kids account.

CDA account rates can change... some history

Previously in 2015, UOB did a tiering system for interest in CDA and thankfully it has been revised.

POSB previously had a guarantee on the 2% rate for 5 years but they have removed it.

In year 2011, Standard Chartered Bank had the best CDA interest rate offering at 1%/y only. Now it's all at 2%. Standard Chartered is not even offering support for it anymore from Dec2018. So ya, things do change.

Last updated on May 21st, 2019 at 02:25 pm

The Astute Parent

A parent who has a sharp acumen on sieving through 'alien' financial jargon to dish out bite size financial tips from a parent's perspective.

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