Most of us have a DBS/POSB account. From what I surveyed amongst parent, POSB CDA is a popular choice because of the convenience of linking to the DBS Ibanking.
FYI: POSB CDA gives 2% interest rate (for first $50k).
POSB CDA promotion NOW *1 July 2020 to 30 June 2021*!
This promotion is limited to first 3,000 redemptions on a first-come-first-serve basis. So do check if it is still valid here. Promotion period is from 1 July 2020 to 30 June 2021.
The POSB Parent Starter Kit* consists of the following items (more):
- 1 x Pampers by P&G
- 1 x Breast Storage Pads by Philips
- 1 x Nursing Shawl by Philips
- 1 x Storage Bottle by Philips
After opening the POSB Child Development Account, you'd need to activate the Reserved Account within 90days to be eligible to receive a POSB Parent Starter Kit.
If you are switching over from other CDA banks, you'd also be able to enjoy the promotion.
Moments of Life App For Parents and a place to start your CDA application
Registering of the CDA account can be done in two ways.
The first method is directly at the baby bonus website by MSF.
The second method is through Moments of Life App which seems to be a MUST download now for new parents since you need to do birth registration.
Quick Tip: Do you birthcert collection at ICA to save cost. It will only be $18.
If done at KKH, registration fee of $45 plus GST. A private hospitals, it is also more than $40.
On the same Moments Of Life app (screenshots above), you can do your baby bonus application.
This link sends you also to same baby bonus website by MSF.
You may even Pre-register For CDA account ahead of baby's birth
Within 2months of EDD, you can actually do all these first just in case you're too flustered after baby birth.
But having said that, don't panic.
Most husbands should have enough time and energy to do account opening tasks after birth =)
Summary and comparison with OCBC CDA
I opened the OCBC CDA account for my first child. With their rates now lowered (at point of writing), I've chosen POSB CDA for my second child and also moved over the OCBC CDA for my first child.
FYI: UOB also gives 2% and for an unlimited amount.
However, CDA can only be used for approved uses and there is not much benefit to keep like more than $50,000 within the account. So I view the rates for POSB and UOB the same.
In addition, I've this further article to share with you on child CPF. See you there too!