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We thank Mr David Tan for his letter ( , Aug 15). The Child Development Account (CDA) is meant to support parents in child raising, and parents can use the monies for pre-school education and healthcare costs, as well as other approved expenses for the child’s and siblings’ benefit. It is thus similar to a spending account and attracts commensurate interest rates. The interest rate of the CDA should not be compared against the CPF Ordinary Account nor Singapore Savings Bonds or T-bills that have lesser liquidity. Banks have the discretion to set the interest rates for the CDA based on their commercial considerations, and parents have the option to open their child’s CDA with one of the three approved banks. While the Government does not dictate the interest rates of the CDA, deposits in the CDA will receive a dollar-for-dollar matching from the Government, up to the government co-matching cap. We have also enhanced Baby Bonus benefits over the years to better support families. For example, families with eligible Singaporean children born on or after Feb 14, 2023, receive an increased Baby Bonus Cash Gift over a longer period and enjoy a higher government co-matching cap for the CDA. The Government has put in place a comprehensive set of measures, from housing and healthcare, to pre-school, education and transport, to support young families and will continue to strengthen our support to build a Singapore Made for Families. Director, Services/Family Life Group Ministry of Social and Family Development