Why are administrative fees not covered as incidental charges at Approved Institutions (AIs) to deduct from the Child Development Account (CDA)?

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Accepted Answer

Funds in the CDA are intended to support the educational and developmental needs of the child. As such, administrative fees, such as: (a) charges for processing CDA payments; (b) penalty fees for the late payment of school fees; and (c) penalty charges and bank charges for failed direct debits in the CDA, cannot be paid using the CDA.

Please click here to check the types of charges that an AI can deduct from the CDA.

Why are administrative fees not covered as incidental charges at Approved Institutions (AIs) to deduct from the Child Development Account (CDA)?

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