Melissa, 28, wanted to have a natural birth, but when complications set in, a Caesarean section became necessary. Coupled with the cost of a longer hospitalisation stay and additional neonatal care for baby Sophie, the resulting bill came close to wiping out their savings.

Fortunately, the S$4,000 Baby Bonus cash gift helped to off-set the medical fees, and allowed the new parents to recover some of their savings. Upgrading their OCBC CDA to the OCBC CDA Extra account started them on the path to higher regular savings and doubles it with the Government co-matching into their CDA account. This will help to provide for immediate nursery and childcare needs.

When formal education starts in 6 years, at Primary One, Melissa expects the cash-back feature of the School Plan she had signed up for to kick in – just in time.

Veronica, 30, decided to deposit her S$4,000 Baby Bonus cash gift into the CDA, and top up with S$2,000 in her own cash, to give baby Joshua an optimised CDA of S$12,000. Taking into consideration current childcare costs and the Government's childcare subsidy, the CDA will be just sufficient to take Joshua into primary school.

For most working parents, childcare costs can become an ongoing burden right until your child is ready for primary school. Thankfully, any money saved in the OCBC CDA – which the Government doubles, up to a $12,000 total – can be used for these costs.

Like Melissa, she will also benefit from the School Plan’s cash-back feature, but since she bought a plan with a longer tenor, she will receive a lump sum when her plan matures in 18 years – perfect for when Joshua is ready for tertiary education.

Erica, 33, made health protection a priority when baby Alice came along. A low-risk savings plan for a core education fund was next, and Erica chose to maximise the CDA by upgrading it to an OCBC CDA Time Deposit. “This is an ‘untouchable’ fund, something that we can count on when the time for university comes.”

“To cater for inflation and possible university education overseas, we will be adding to the core education fund with plans that complement our needs,” said Erica.

For added protection and education planning, she chose the School Plan, which provides both, plus a built-in waiver for premiums and insurance coverage for the child.

A little planning can go a long way. Coupled with the Baby Bonus, the OCBC CDA and School Plan can help you manage increasing education costs and give your savings a boost when it is most needed.