CDA to PSEA transfer cap

[nautilus]

Just a note for those who have saved a pile in their children’s CDA account, MSF has just changed the rules and placed a limit on the amount of CDA funds that can be transferred over to PSEA.

Here’s from MSF website:
If there are unused funds in the Child Development Account (CDA) at the end of the year your turns 12 years old, the funds will be automatically transferred to your child’s Post-Secondary Education Account or PSEA, subject to the cap applicable to your child. The cap is based on the sum of the CDA Government contributions cap, the corresponding deposits made by parents or third parties, any Child Development Credit and any accrued interest. If there is any excess balance above this cap, MSF will notify the CDA trustee about the refund arrangement.


Sounds like they will refund the excess in cash to the trustee.

 

[reddevil0728]

is there a link for this?

 

[nautilus]

https://va.ecitizen.gov.sg/cfp/customerpages/msf/bb/explorefaq.aspx

Under Managing a Child CDA, “ I have saved in excess of the CDA Government contributions cap. Will the excess also be transferred to PSEA?”

 

[deedee56]

My twins are 4 this year and they have POSB CDA account. The interest rate is 1% for first 10k, then 2% for 10k to 50k.

Wondering if it makes sense to top up to 50k since most of the bank account interest are really low now. With the excess being refunded after primary school, this will be like a 'fixed deposit /endowment'. Principal guaranteed, time span : 8 years (12-4), interest rate: 2%, no agency fee needed.

Looking for something risk free.

 

[nautilus]

Yup but bear in mind that the interest for CDA may be readjusted as well given the interest rates out there.

It’s even better If your child is born between 2006 and 2012, you can transfer from CDA to PSEA anytime after they are 7 years old. This means that you can cash out anytime should the rates drop.

 

[Broadwalk]

Yup but bear in mind that the interest for CDA may be readjusted as well given the interest rates out there.

It’s even better If your child is born between 2006 and 2012, you can transfer from CDA to PSEA anytime after they are 7 years old. This means that you can cash out anytime should the rates drop.

Can you elaborate on your above statement? It seems confusing.

How can you transfer from CDA to PSEA at age of 7? It should be at age of 12 instead?

 

[nautilus]

Little known fact:
https://www.babybonus.msf.gov.sg/pa...&_afrWindowMode=0&_adf.ctrl-state=408vw5hwv_4

 

[Avks9377]

Anyone know what is cap for transfer from CDA to PSEA account? The amount differs for each kid or all the same?

 

[Avks9377]

Also is there a cap on the amount we can top up on PSEA?