If you`re a new member of the Child Development Account (CDA) scheme, you`ll need to fill out a subscription agreement form. This form is a crucial part of the application process, as it outlines the terms and conditions of your CDA account.
The CDA scheme is an initiative by the Singapore government to help parents save for their child`s future. The scheme provides dollar-for-dollar matching of deposits made into the CDA account, up to a certain limit. This matching amount is then used to fund your child`s education and healthcare expenses.
To open a CDA account, you`ll need to submit a subscription agreement form to your chosen CDA bank. This form outlines the terms and conditions of the CDA scheme, including the deposit and withdrawal rules, interest rates, and any fees or charges that may apply.
The subscription agreement form is an important document, as it lays out the expectations and responsibilities of both the account holder and the CDA bank. It`s essential to read and understand the terms and conditions listed in the form before signing up for the scheme.
Here are some key things to note before filling out the CDA subscription agreement form:
1. Eligibility criteria: To be eligible for the CDA scheme, you must be a Singapore citizen or permanent resident with a child born on or after 1 January 2016. The child must also be a Singapore citizen.
2. Deposit limits: The maximum amount that can be deposited into the CDA account is $3,000 for the first and second child, and $9,000 for the third and subsequent child. The government will match the deposit amount dollar-for-dollar, up to a certain limit.
3. Withdrawal rules: The CDA account can be used to pay for approved education and healthcare expenses, such as childcare fees, preschool fees, medical bills, and dental expenses. However, there are limits and restrictions on the amount that can be withdrawn for each category of expenses.
4. Interest rates: The CDA account earns interest on the deposit amount, which is currently set at a rate of 2% per annum. The interest earned is credited to the account on a quarterly basis.
5. Fees and charges: The CDA bank may charge fees and service charges for various transactions, such as account opening, deposits, and withdrawals. These fees and charges may vary depending on the bank.
Once you`ve read and understood the terms and conditions of the CDA scheme, you can fill out the subscription agreement form and submit it to your chosen CDA bank. The bank will then process your application and open a CDA account for you and your child.
In conclusion, the CDA subscription agreement form is a crucial document that outlines the terms and conditions of the CDA scheme. It`s important to read and understand the form before signing up for the scheme, to ensure that you`re aware of the deposit and withdrawal rules, interest rates, and any fees or charges that may apply. By doing so, you can make informed decisions about your child`s future and ensure that their education and healthcare expenses are well taken care of.