Parents to get 2% interest on child development accounts at POSB

Parents to get 2% interest on child development accounts at POSB
SG50 baby Chloe and her parents Keith Tham and Daphne Lian, together with Mr Jeremy Soo, Managing Director & Head of Consumer Banking Group (Singapore), DBS Bank. Photo: POSB

SINGAPORE - From July 13, POSB will be offering parents an interest rate of 2 per cent per annum for the entire duration on their Child Development Accounts (CDAs) opened with the bank.

According to a statement from POSB, this is believed to be the highest interest rate accorded by a bank on CDAs in Singapore.

The interest rate will apply to the parents' first and second child, up to a maximum of $12,000. For their third and fourth child, it will be up to a maximum of $24,000 while the limit for their fifth child and beyond is $36,000. This interest rate will be available to all new CDAs opened with POSB, including CDAs that parents choose to switch from other banks.

Customers simply have to apply or switch to the "POSB Smiley CDA" at the MSF Baby Bonus Online Portal at www.babybonus.msf.gov.sg/parent.

POSB will be setting up designated booths at KK Women's and Children's Hospital and Thomson Medical Centre to assist parents with their CDA applications from July 13.

Parents who sign up will receive a POSB Baby Bonus NETS Card where they can get to enjoy discounts and privileges at various online, retail and dining merchant partners like Mothercare, My Gym, VitaKids, and more.

Parents will also be able to use the card to pay for their childcare and medical expenses at approved institutions registered with the Ministry of Social and Family Development.

For more information on POSB Smiley CDA, please visit www.posb.com.sg/cda.

candicec@sph.com.sg

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