Last Updated on June 26, 2023 by Parentology
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Welcome to Parenthood! As a parent in Singapore, you’ll be delighted to discover a range of financial support programs designed to ease the financial burden of raising children. The Child Development Account (CDA) offers a platform for saving and investment, while the Baby Bonus Scheme provides cash gifts at birth and throughout early childhood. By joining the scheme, you can unlock a multitude of benefits, including generous cash gifts and access to various government assistance programs. Let’s explore the wealth of opportunities available to you and ensure your journey as a parent is accompanied by valuable financial support.
It’s part of the Marriage and Parenthood Package and was enhanced once again in February 2023 to increase the level of support for parents.
Two parts of the MSF Baby Bonus Scheme are especially relevant for new parents:
- the baby bonus cash gift and
- the baby bonus Child Development Account (CDA) benefits
The Baby Bonus Cash Gift
A cash gift is provided to new parents, with the first instalment (out of 5) being provided within 7 – 10 days of your baby’s birth registration or after completing the online form (whichever is later). This gift is meant to help offset the expenses of having a new child and is often used to pay for newborn-related necessities. This baby bonus cash gift stays the same even during COVID.
The cash gifts amounts you are entitled to are listed as follows:
|
Child Order |
Born between 26 Aug 2012 and 31 Dec 2014 (for each child) | Born on or after 1 Jan 2015 (for each child) |
|
1st & 2nd Child |
$6,000 | $8,000 |
| 3rd & 4th Child | $8,000 |
$10,000 |
| 5th and higher | $0 |
$10,000 |
The cash gift baby bonus payout is provided in 5 instalments over 18 months in the following way:
|
Baby Bonus Cash Gift Payout |
||
|
First and Second Birth Orders |
Third and Subsequent Birth Orders | |
|
Within 7 to 10 working days from birth registration or joining the scheme, whichever is later |
$3,000 |
$4,000 |
| When the child turns 6 months old | $1,500 |
$2,000 |
|
When the child turns 12 months old |
$1,500 | $2,000 |
|
When the child turns 15 months old |
$1,000 | $1,000 |
| When the child turns 18 months old | $1,000 |
$1,000 |
| Total | $8,000 |
$10,000 |
The Baby Bonus CDA Account
The Child Development Account Singapore is essentially a savings account that is set up specifically for your child. This is done automatically, within 3-5 working days of their birth registration or after you fill out the online form, so you will not need to visit the bank. It can be opened with DBS, OCBC, or UOB in Singapore, so your CDA account login is also from your bank’s infrastructure and the Child Development Account top-up is as easy as adding money into the account. Money from this account can be spent on educational and healthcare needs for your child, including payments for school and healthcare. Child Development Account uses are aplenty; they can be used at Baby Bonus Approved Institutions (BBAIs) in Singapore, which include:
- Child Care Centres
- Kindergartens
- Special education schools
- Providers of early intervention programmes
- Providers of assistive technology devices
- Hospitals and clinics
- Pharmacies
- Optical shops
Crucially, CDA account usage also covers MediShield insurance premiums as well as MediSave-approved plans in Singapore that are administered by other insurance agencies.
The account lasts until your child turns twelve, at which point it is automatically converted into a different account called the Post-Secondary Educational Account (PSEA).
The first part of CDA benefits is called the CDA First Step Grant of $3,000. This is an amount of money that is automatically credited to your child’s CDA when you open it and does not require any deposit to receive.
The second part of CDA Singapore benefits is the government co-matching, which is matched within the first two weeks. For every dollar you place into your child’s CDA account, the government will match it up to the co-matching cap. If you do not manage to reach this cap by the year your child turns twelve, the CDA matching will continue with the PSEA that is opened afterwards until the cap is met.
Here is a summary of the co-matching caps and the total benefits you receive for your children.
|
Birth Order |
CDA components | Total CDA Benefits | |
|
First Step Grant (no initial deposit from parents required)1 |
Maximum Government
co-matching |
||
|
1st Child |
$3,000 | Up to $3,000 | Up to $6,000 |
| 2nd Child2 | Up to $6,000 |
Up to $9,000 |
|
| 3rd & 4th Child | Up to $9,000 |
Up to $12,000 |
|
| 5th child and higher | Up to $15,000 |
Up to $18,000 |
|
Because CDAs are for the children, infants of unwed parents or single parents are still eligible to receive CDA benefits and will do so as well. The specifics of this are covered below.
Baby Bonus Eligibility
You can simply check your eligibility with the MSF’s eligibility calculator, but a summary of it is outlined as follows:
For the cash gift, you must fulfill the following criteria:
- The child is born on or after 1 January 2015.
- The child is a Singapore Citizen, and
- The child’s parents are lawfully married
For the CDA benefits, you must fulfil the following criteria:
- The child is born on or after 24 March 2016.
- The child is a Singapore Citizen, and
- The child’s parents are lawfully married
But wait–what about single parents or unwed parents? Do the children not receive benefits?
They do! Children of unwed single mothers are eligible for CDA benefits if they are born after 1 September 2016. However:
- They are not eligible for the cash gift, and
- This only applies to single mothers and does not include single fathers.
Parents of the child who get married after the birth may also apply for Baby Bonus once they are married and as long as the other criteria are also fulfilled. Adoptive parents may also apply for the Baby Bonus Scheme once the adoption process is completed.
How do I join the Baby Bonus Scheme?
Parents may pre-register to join the Baby Bonus Scheme as early as 2 months before your estimated delivery date or after your child’s birth registration. They must join the scheme before the year they turn 12.
The registration form can be found on the Baby Bonus Online website, as outlined below.
Other things I should know
All of your transactions, paperwork, etc. that will take place in regards to the Baby Bonus Scheme will take place on Baby Bonus Online, a dedicated portal for everything in regards to the Baby Bonus Scheme under the purview of the Ministry of Social and Family Development. You will log in with your SingPass, and fill out any relevant forms including the initial baby bonus application for the Scheme! The Baby Bonus login can be found here.
The Baby Bonus hotline can also be reached at 1800-111-2222 locally.
We hope this information serves as a great aid in you should you be looking at finding an understanding on the scheme!
Ready to secure your child’s financial future? Our experienced financial advisors specialize in providing tailored financial planning solutions for young parents in Singapore.
Whether it’s maximizing the benefits of the Baby Bonus and CDA, setting up an education fund, or planning for long-term investments, our team is here to guide you every step of the way. Take the first step towards securing a bright future for your family by contacting our financial advisor today. Let’s create a solid financial plan that gives your child the best opportunities in life.
