Best Savings Accounts & Child Development Accounts (CDA) For Kids In Singapore 2023

Don't know where to park your child's collected angbao money every year? Fret not, we’ve compiled the best savings accounts in Singapore that’ll give your kids a headstart on their finances.

As the saying goes, good saving habits start young.

Li Chun falls on the beginning of Spring and is believed to be a day of good paw-tune to ‘grow’ one’s wealth. Translate that to today’s context, and that means making a well-timed deposit into you and/or your child’s bank account.

While this tradition takes a page out of the basic money management handbook, it also serves as an important lesson for the little ones to start growing their savings from their ang bao money collection instead of spending it unnecessarily.

Here's an overview of the content we'll cover:

• Why child savings accounts are important
• List of child savings account
  • POSB My Account
  • OCBC Mighty Savers Account
  • UOB Junior Savers Account
  • CIMB Junior Saver Account
  • Maybank Youngstarz Account
  • Standard Chartered e$aver Kids Account
  • Citibank Junior Savings Account
• Why Child Development Accounts (CDA) are important
• List of CDAs
  • POSB Smiley CDA
  • OCBC CDA
  • UOB CDA
• Child Savings Account vs. CDA

Why is it important to deposit in a savings account?

If this is your first foray into money parenting, let us quell any jitters you may be feeling. Eastspring Investments’s recent study showed that over half of the 10,000 parents surveyed doubt if they’ve been successful role models for their kids when it comes to money management. But you’re definitely on the right track by opening and subsequently depositing their ang bao collection.

Not only does it help to build up funds securely with the help of attractive interest rates — a perk no piggy bank can offer — it also teaches them invaluable saving habits, the very foundation one needs to develop a good grip on their finances.

Moreover, when your child comes of age, you can easily hand the reins over to them as they start navigating the realm of online banking, learn to make their own deposits and handle transactions with a debit or credit card. 

In time, they’ll be able to bump up their interest rate when they convert to a high-yield savings account once they reach the age requirement.

Best saving accounts for your kids

Here, we’ve put together the best savings account for this occasion. 

*Citibank fall-below fee of S$15 applies if (a) parent also has a Citibank account and (b) Total Relationship Balance (TRB) between child and parent dips below S$15,000.

POSB My Account

Is there a more approachable financial institution than POSB? 

A true blue icon that’s practically embroidered in our nation’s fabric, you may want to consider opening up POSB’s My Account for your kid.

Min. initial deposit: None
Coin deposit fee: N.A.
Service fee: N.A.
Fall-below fee: S$2 account fee charged after 16 years old
Age requirement: N.A.

Benefits include:

• $1 gift deposit
• Convert to DBS Multiplier Account and earn up to 3.8% p.a.
• No initial deposit
• No min. balance required
• Link parent's account to child's savings using POSB Smart Buddy app*
• Exchange and save up to 13 different currencies
• Earn instant cashback on DBS Visa Debit Card in the future
• Free POPULAR 1-year student membership

*POSB Smart Buddy card or watch is a payments wearable device or item that allows your child to unlock contactless transactions. Download the app to track and control your child's expenses.

Why POSB My Account: The wide range of perks offered beats the other contenders on this list — ranging from multi-currency capabilities, smart device and app integrations to monitor spending, complimentary POPULAR membership for a year, and even future cashback earnings upon acquiring a debit card.

OCBC Mighty Savers Account

Min. initial deposit: None
Coin deposit fee: N.A.
Service fee: N.A.
Fall-below fee: N.A.
Age requirement: Under 16 years old

Benefits include:

• Priority queue service on Sundays at any 'Sunday at OCBC' branch
• No initial deposit
• No min. balance required

Why OCBC Mighty Savers Account: Shorter queues, enjoy decent 0.20% interest rate and minimal account maintenance needed with zero pesky fees. 

Note: Avoid making any withdrawals within the month and open an OCBC Child Development Account (CDA) to be eligible for the higher tier interest rates — easy peasy!

UOB Junior Savers Account 

Min. initial deposit: S$500
Min. average daily balance: S$500
Premature account closure fee (within 6 months): S$30
Coin deposit fee: N.A.
Service fee: N.A.
Fall-below fee: S$2 if balance is below S$500
Age requirement: Under 16 years old

Benefits include:

• Monthly transfers to Junior Savers account from an existing UOB account
• Convert to regular UOB account at 16 years old
• Receive UOB Direct Visa Debit/ATM card and earn extra rebates and discounts
• Fuss-free mobile banking and internet banking
• Free insurance coverage of up to 100%*

Why UOB Junior Savers Account: Earn up to 0.10% interest rate (min. $500 deposit) and receive guaranteed insurance coverage with coverage scaled according to deposit balance.

The ability to set monthly fund transfers from a UOB account to your child’s Junior Savers Account makes supplementing your child's pocket money convenient.

*Average daily balance of S$3,000 every month is mandatory to qualify for free insurance coverage. Must be maintained for over 6 months or since account opening, whichever comes first.

CIMB Junior Saver Account

Min. initial deposit: S$1,000
Premature account closure fee (within 6 months): S$50
Service fee: N.A.
Fall-below fee: N.A.
Age requirement: Under 12 years old

Benefits include:

• Attractive base 0.20% p.a. interest rate
• Can register for account online
• Minimal account maintenance needed

Why CIMB Junior Saver Account: Starting 0.20% p.a. (min. S$1,000 deposit) is among the highest base rates among kids savings accounts, and is on par with the highest interest tier on other banks' accounts.

There are zero fall-below fees and account maintenance fees but $50 will be applied for premature account closure within 6 months of initial opening.

Maybank Youngstarz Account

Min. initial deposit: S$10
Premature account closure fee*: S$50
Service fee: N.A.
Fall-below fee: N.A.
Age requirement: Under 16 years old

Benefits include:

• Earn up to 3X interest rate with Maybank Family Plus
• Birthday month privileges
• Hospitalisation and outpatient insurance for Hand, Foot & Mouth Disease *
• Eligibility for Personal Accident (PA) Insurance*

*Min. balance of S$5,000 required

Why Maybank Youngstarz Account: It offers one of the highest interest rates (0.3750% p.a.) on the lowest bank account balance (> S$50,000), and your kid will be privy to exclusive birthday privileges. 

Complimentary insurance coverage for Hand, Foot and Mouth Disease Hospitalisation and outpatient care along with worldwide PA insurance coverage are definite incentives as long as the account balance contains at least S$5,000.

Standard Chartered e$aver Kids Account

Min. initial deposit: None
Min. monthly contribution: S$50
Premature account closure fee: N.A.
Service fee: N.A.
Fall-below fee: N.A.
Age requirement: Under 18 years old

Note: Interest is calculated daily and paid every 6 months.

Benefits include:

• No initial deposit
• No min. balance required
• No lock-in periods; flexible withdrawals
• Fuss-free account maintenance

Why Standard Chartered e$aver Kids Account: With the understanding that every child's spending habits differ, the e$aver Kid's Account's management is kept extremely fuss-free.

Its biggest advantages are the absence of pesky account fees, no min. account balance and high liquidity.

Citibank Junior Savings Account

Min. initial deposit: None
Service fee: N.A.
Fall-below fee: S$15 if Total Relationship Balance (TRB) of parent's and child's accounts is below S$15,000
Age requirement: Under 18 years old

Benefits include:

• Obtain an international Citi ATM card upon 15 years old
• Both online and phone banking available

Why Citibank Junior Savings Account: It has relatively low balance criteria of S$30,000 and above in order to get 0.10% p.a. interest rate. Account management is also kept to a minimum and your child stands to receive a complimentary ATM card upon turning 15 years old.

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What about Child Development Accounts (CDA)?

Child Development Account (CDA) refers to a special savings account that's under the Baby Bonus Scheme as a token of gratitude for contributing to the nation's desperate birthrate.

The aim of the scheme is to provide financial assurance and support to help parents in offsetting some early childhood expenses. The scope of these includes education and healthcare costs at approved institutions.

Examples include:

• Childcare centres, kindergartens
• Special Needs Schools
• Insurance providers
• Providers of Early Intervention Programmes, Assistive Technological Devices
• Medical institutions like hospitals and clinics
• Optical shops and pharmacies
• MediShield or Medisave-approved Private Integrated Plans

Parents can open CDAs at POSB/DBS, OCBC or UOB banks.

Here's what every newborn can receive as part of CDA benefits:

• Cash Gift: Separate from the CDA benefits. Cash gift amount depends on Singaporean child's order of birth. Will be disbursed in five instalments over 18 months.
• First Step Grant: Applicable to all Singaporean children born or estimated birth from 24 March 2016 onwards. Grant is automatically credited after opening CDA account. No initial deposit required.
• Maximum Government Co-Matching: Also known as dollar-for-dollar matching of CDA savings by the government, up to the maximum co-matching amount.
  
  E.g. If you deposit S$3,000 into the CDA, the government will deposit S$3,000 equally into the same CDA.
  
  These savings can be tapped on for the aforementioned services before 31 December of your child's 12th birth year.

^Applicable to Singaporean babies born or estimated birth from 1 October 2020 to 30 September 2022. Those born before 1 October 2020 can still qualify if they're eligible for the Cash Gift*.
*Applicable to Singaporean babies born from 1 January 2015.
**All Singaporean babies that are (a) the second child, and (b) born from 1 January 2021 onwards will be eligible for this increased dollar-to-dollar matching.

Note: Couples with no official certification proof of marriage are not eligible for the One-Off Baby Support Grant or the Baby Bonus Cash Gift.
Their child will only qualify for the CDA benefits — First Step Grant and Government Co-Matching if born from 1 September 2016 onwards.

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Best Child Development Accounts (CDA) for your kids

Here, we’ve put together the best savings account for this occasion. 

POSB Smiley CDA

Benefits include:

• Up to 2% p.a. interest rate
• Entitled to learning, lifestyle and health/wellbeing perks with POSB Baby Bonus NETS Card*
• Child's CDA will be bundled with parent's Reserved Accounts
  (i.e. My Account — Personal and/or My Account — Joint-Alternate)
• Exclusive POSB Parent Starter Kit promotion^
  • 1 x Nursing Shawl by Philips
  • 1 x Pampers Premium Care Tape Diapers — Newborn Sze by P&G
  • 1 x Disposable Breast Pads by Philips
  • 1 x Breast Milk Storage Cup by Philips

*Valid till 31 December 2022
^On a first-come-first-serve basis, limited to first 3,000 redemptions. While stocks last. Valid till 30 April 2022.

OCBC CDA

Benefits include:

• Up to 2% p.a. interest rate
• Up to 50% discounts over 14 merchants using the OCBC Baby Bonus Card
• Up to 0.20% p.a. interest rate in child's Mighty Savers Account for joint monetary growth

UOB CDA

Benefits include:

• Up to 2% p.a. interest rate
• Receive a Baby Bonus Card to make payments for child's needs
• View, manage and track CDA anywhere using UOB TMRW

Our pick: OCBC CDA

OCBC CDA offers better interest rates at 2% p.a. after the first S$25,000 deposited with interest cap on balance. A wider range of benefits and perks are also available through their Baby Bonus Card: learning and playing, health, childcare, shopping and dining.

OCBC considers your child's future savings (after 12 years old) by giving parents access to channel funds into Mighty Savers Account with over 0.20% p.a. Great for transitioning your kid from a CDA to use a proper savings account in their adolescence.

However, POSB Smiley CDA is a close second because of the exclusive Parent Starter Kit promotion it's running until 30 April 2022 only!

Child Savings Account vs. Child Development Account (CDA)

After all is said and done, there's a lot to digest and internalise for yourself. However, at this juncture, you must be wondering: what exactly is the difference between a normal child savings account and a CDA?

Well, allow us to enlighten you:

1. You cannot withdraw from CDA for unapproved purposes

As it's clear by now, CDA is used primarily for your baby's needs until he/she reaches the age of 12.

Moreover, CDA funds are only approved for a selected number of education and healthcare-related institutions and retailers by the government. Hence, you cannot withdraw money as and when you please without validation or approval.

Conversely, savings account definitely offer better liquidity and can be used for other miscellaneous funds that the CDA cannot cover.

2. Earlier age limit for CDA

Compared to many savings accounts, the bulk of the age limits typically ranges from 16 to 18 years old. This gives your child a longer runway to continue saving and even earn extra funds on the side (e.g. part-time or contract jobs) when they come of working age.

Whereas for CDAs, your child will hardly be legal to work at the end of 12 years old. The period of savings is no doubt shorter and your kid might not fully fathom or inculcate saving habits yet due to their pre-adolescence.

To facilitate the perfect transition from kid savings account to a formal savings account, we have a detailed guide on the best savings accounts in Singapore.

3. Extra monetary bonuses

Clearly, CDA offers greater incentives to grow your family because of the major bonuses and grants given per child. However, don't let this translate into unplanned pregnancy just for the extra perks.

A child is a precious life that requires consideration and planning before introducing them into the world.

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If you’re still having any doubts about your own ability to educate your kids about money, you’re far from alone in feeling this way.

The Eastspring Investments study found that nearly half (43%) of the parents surveyed are keen on improving their own financial literacy to become better role models for their children. 

Get started on the right financial foot by checking out The Ultimate Savings Guide today.

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