Investment Growth Calculator

Project how your investments grow over time for your child's future.

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Medical Disclaimer: This tool is for educational and informational purposes only. It does not provide medical advice, diagnosis, or treatment. Results are estimates only. Always consult a qualified healthcare professional for medical decisions. In an emergency, call 995 (Singapore) immediately.

Investing for Your Family in Singapore

Compound interest is often called the eighth wonder of the world - and it works best when you start early. Even small, regular contributions made while your children are young can grow significantly over 18–20 years. Whether you're saving for your child's university education or your own retirement, understanding your investment options in Singapore is the first step. Pair this with our College Savings Calculator to set a concrete goal.

Singapore Investment Vehicles: A Parent's Comparison

Vehicle	Expected Return	Risk	Liquidity	Best For
Singapore Savings Bonds (SSB)	2.5–3.5% p.a.	Very Low	High (monthly redemption)	Emergency fund overflow, capital preservation
CPF Voluntary Top-Up (SA)	4.0% p.a. guaranteed	None (govt-backed)	None until 55	Long-term retirement savings, tax deduction
Fixed Deposits	2.0–3.5% p.a.	Very Low	Low (locked 3–12 months)	Short-term goals 1–3 years away
STI ETF (SGX)	5–7% p.a. historical	Medium	High (market hours)	Broad Singapore market exposure, low cost
Global ETF (MSCI World/S&P 500)	7–10% p.a. historical	Medium-High	High	Long-term 10+ year goals like education fund
Endowment / ILP	3–5% p.a. (projected)	Low-Medium	Low (lock-in 10–25 yrs)	Disciplined savers, insured savings
Child Development Account (CDA)	Up to 2% p.a. + govt match	None	Medium (approved use)	Baby's childcare and medical expenses
SRS (Supplementary Retirement Scheme)	Depends on investment	Low–High	Low (penalty pre-62)	Tax relief for parents in higher income brackets

The Power of Starting Early: Compound Growth Examples

Assume a S$500/month investment at 6% p.a. return, compounded annually:

10 years

S$81,940

Good start

15 years

S$145,838

University fund territory

20 years

S$231,020

Strong education + nest egg

Dollar-Cost Averaging: The Parent's Strategy

When you invest a fixed amount every month regardless of market conditions, you automatically buy more units when prices are low and fewer when prices are high. This is called Dollar-Cost Averaging (DCA) - and it's ideal for busy parents who don't have time to watch markets. Set up a regular savings plan (RSP) through banks like DBS, OCBC, or UOB, or platforms like FSMOne or Endowus.

Tax note: Singapore has no capital gains tax and no dividend withholding tax on Singapore-sourced dividends. However, US ETFs are subject to 30% US withholding tax on dividends. Consider Ireland-domiciled ETFs (e.g., CSPX instead of SPY) to reduce this to 15%.

Frequently Asked Questions

How much should I invest each month as a new parent?

A common rule of thumb is to invest 20% of take-home pay. With a baby, this may drop to 10–15% temporarily. Even S$200–300/month started consistently in your child's first year adds up significantly over 18 years.

Should I invest in my child's name or mine?

In Singapore, children under 18 cannot hold brokerage accounts directly. Options include a CDA (for specific uses), a joint account with a parent, or investing in your own name earmarked for education. Speak with a licensed financial adviser for trust structures.

What is CPFIS and should I use it?

CPFIS lets you invest your CPF OA funds in approved instruments. However, since OA already earns 2.5%, you need to earn more than that after fees to benefit. Many Singaporeans find CPF top-ups (to SA at 4%) more straightforward.

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