SINGAPORE: Oversea-Chinese Banking Corporation (OCBC) said on Monday (Jul 13) it will pay an interest rate of 2 per cent per annum to Child Development Accounts (CDA) with balances of up to S$36,000.
Balances above S$36,000 will earn an interest of 0.05 per cent per annum.
OCBC had previously paid 0.5 per cent interest on amounts up to S$20,000, with the rate rising to 0.8 per cent for higher amounts.
CDAs are special savings accounts linked to Singapore’s Baby Bonus Scheme.
Funds deposited into these accounts will be matched by the Government, subject to certain limits.
OCBC, UOB and POSB are among the managing agents for CDAs. POSB is paying an annual interest rate of 2 per cent for a family’s first and second child for up to S$12,000. For the third or fourth child, the rate will apply for balances up to S$24,000.
For UOB, it is offering interest rates of up to 2 per cent, which includes a promotional bonus interest until the end of the year.