I initiated the top-up of my child’s SA in September 2019 to kick off the power of compounding interest. A monthly $100 top-up is a small but steady way in building up her assets. To reiterate, the first $60,000 of combined balances (with up to $20,000 from the OA) earns an extra 1% interest.
It will be a long way before the first combined $60,000 is reached. This also means every top-up earns 5% p.a.! It is too good a deal if parents start young enough. Do note however, it is essential to top up what you can afford as it is a one-way transfer till a good 55 years later.
How would this work out for my child if I were to do that till she reaches the adult age of 21 at the end of year 2038? In this case, MA and SA both earn 5% interest as they are well below the combined balances of $60,000.
| Year | MA | SA | Total |
| 2019 | $4,136 | $504 | $4,639 |
| 2020 | $4,342 | $1,756 | $6,099 |
| 2021 | $4,559 | $3,072 | $7,630 |
| 2022 | $4,786 | $4,452 | $9,238 |
| 2023 | $5,024 | $5,901 | $10,925 |
| 2024 | $5,274 | $7,423 | $12,697 |
| 2025 | $5,537 | $9,020 | $14,557 |
| 2026 | $5,812 | $10,697 | $16,510 |
| 2027 | $6,102 | $12,458 | $18,559 |
| 2028 | $6,406 | $14,306 | $20,711 |
| 2029 | $6,725 | $16,246 | $22,971 |
| 2030 | $7,060 | $18,282 | $25,342 |
| 2031 | $7,411 | $20,421 | $27,832 |
| 2032 | $7,780 | $22,665 | $30,446 |
| 2033 | $8,168 | $25,022 | $33,189 |
| 2034 | $8,575 | $27,495 | $36,070 |
| 2035 | $9,002 | $30,092 | $39,094 |
| 2036 | $9,450 | $32,819 | $42,269 |
| 2037 | $9,921 | $35,681 | $45,601 |
| 2038 | $10,415 | $38,685 | $49,100 |
With a total top-up of $23,300 over the years, she will have a combined balance of $50,000 when she starts work in society. This first $50,000 will continue working hard for her at 5% p.a.
Theory of Constraints 
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