Expectant couple relaxing on the sofa

With only a few weeks to delivery, you’ve probably been giving a lot of thought to the expenses your new arrival will bring. What you may not know about is the Baby Bonus scheme, which comprises a cash gift, a Child Development Account (CDA) First Step grant and government matching to savings in the child’s CDA.

The initial part of the cash gift will be given within the first 10 working days after you register your baby’s birth, or after you complete the online form, whichever is later, to help you out with the costs of bringing up your little one. Once you register for the Baby Bonus scheme, a CDA will be opened for you automatically. You don’t need to make an initial deposit.

How Much is the Cash Gift?

Planning family budget

Babies born on or after March 24, 2016 will receive up to $8,000 in cash by the time they are 18 months old if they are the first or second child. The amount goes up to $10,000 if they are the third child onwards.

For your first and second child, you’ll receive the first payment of $3,000 within 10 days of registration; $1,500 each at six months old and 12 months old; then $1,000 each at 15 months old and 18 months old.

For your third child onwards, you’ll receive the first payment of $4,000 within 10 days of registration; $2,000 each at six months old and 12 months old; then $1,000 each at 15 months old and 18 months old.

Related: Services, Support Group and Helplines for Baby Care

Am I Eligible?

Yes, if you and your spouse are married, and if your child is a Singapore citizen, born from March 24, 2016.

Related: 9 Must-Have Items For Your Baby

How Do I Register?

Sign up at www.babybonus.msf.gov.sg/parent. The earliest you can pre-register is up to two months before your child is born.

Related: Pre-pregnancy Preparation

What is the CDA for?

Parents teaching their daughter how to save money

The CDA is a special savings account for your child that parents are encouraged to save into and use the funds for each child’s developmental and healthcare needs.

Each of your children will get a First Step grant of $3,000. The government then matches what you save into your CDA dollar-for-dollar up to a cap: $3,000 for your first two children, $9,000 for your third and fourth children, and $15,000 for your fifth child and more.

Related: Placing your child in a child care centre

How Do I Save Into the CDA?

You can save any amount by cash, cheque, standing order or as a funds transfer from your regular bank account.

Related: Medifund

Can I Withdraw the CDA Funds as Cash?

Happy Asian family playing on the bed

No, funds are for approved expenses only like education and healthcare. They can help to pay education fees at nursery and childcare centres, cover healthcare expenses and purchase Medishield Life or Medisave insurance for your child.

You can also use your child’s CDA to pay for goods and services from organisations that are approved by the scheme.

Related: 5 Things You Should Plan Before Baby's Arrival

Is the CDA Just for the Child Whom I Registered?

No, you can use the funds for the expenses of the child who qualifies — and the child’s siblings.

Baby bonus: At a Glance

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