Last Updated on June 27, 2023 by Parentology
CDA Top-Ups 2021
In addition to prior efforts made to balance rising costs and to encourage families and couples to have more children, the Singaporean Government announced as part of the Budget 2021 plans that the Child Development Account benefit under the Baby Bonus Scheme would receive a one-time top-up of $200 after mid-September 2021. This was released as part of the Household Support Package, which also includes a separate top-up of $200 into EduSave or Post-Secondary Education Accounts (PSEA) from May 2021 for those who do not qualify for CDA top-ups.
To that end, many parents are interested in knowing the specifics about this top-up, in terms of their eligibility or what else they might need to do to receive it. As it is related to the CDA, Edusave, or PSEA accounts, it is clear that the government intends for it to be used to help offset healthcare or education-related costs, as the three accounts are restricted in usage for these purposes specifically.
The child in question will need to be a Singaporean Citizen, and they will also need to have a Child Development Account open – this means they need to be registered under the Baby Bonus Scheme. If your child does not have an account yet, the latest you need to open one for them is 30 June 2022 in order to qualify for this top-up.To open a Child Development Account, simply register your child for the Baby Bonus Scheme on Baby Bonus Online or the LifeSG phone application. The CDA will be opened within a few days of registration or birth, whichever comes later.
Only one account – CDA, Edusave, or PSEA – will receive this one-time top-up of $200.
Child Development Account Top-Up
Only children aged 0 – 6 will receive the top-up of $200 to their CDA. Specifically, this means they have to be born between 1 Jan 2015 and 31 Dec 2021. As mentioned above, your child will also need to have their CDA open, and they will need to be Singaporean Citizens.
Edusave and PSEA Account Top-Up
If your child does not qualify for the CDA top-up, rest assured. Children who are between 7 and 20 years of age will receive the same amount; it will simply be credited into their Edusave or PSEA rather than their CDA. The priority will go to the Edusave account first – that is, as long as your child does not qualify for CDA, they will first be evaluated for Edusave eligibility. If they pass, the money will be automatically deposited into the Edusave account. Parents are not able to choose between Edusave and PSEA, as PSEA deposits, in this case, will only happen if the child does not qualify for Edusave.
For the Edusave, the child in question will need to be a Singaporean Citizen enrolled and studying in a local primary or secondary school. This includes special education schools that are funded by the government. If they are not studying in a government school, they will still qualify as long as they are aged between 7 and 16 in 2021.
For a PSEA deposit, the child in question will not be eligible for an Edusave top-up, but they are still Singaporean Citizens aged between 17 and 20 in 2021. As mentioned above, parents will not be able to choose between PSEA and Edusave.
Receiving the money
As long as your child’s account is open and they qualify for the 2021 top-up, the amount of $200 will be deposited directly into the accounts. If it is open before mid-September 2021, it will be deposited sometime after mid-September 2021. If you open the CDA between mid-September 2021 and 30 June 2022, the $200 will be deposited only after you have opened the account.
As with any transactions with these three accounts, you will be able to receive a notice about the deposit, and you will also be able to view the transaction in the bank statements provided. For the CDA, you should be able to view it under the ‘View Statement’ option on Baby Bonus Online.
Does the top-up qualify as a deposit for government co-matching?
Unfortunately, the top-up amounts in CDA, Edusave, or PSEA will not qualify for the dollar-to-dollar government matching usually associated with these accounts.
As this top-up is not a cash gift, there are limitations on what you can spend it on. Funds in the CDA specifically can only be spent with Approved Institutions (AIs), a list of which can be found on Baby Bonus Online. Similar restrictions apply to the Edusave and PSEA. The reason for this restriction is that this specific amount is meant to help your children with educational or healthcare costs. Most Singaporean households will already have received separate cash gift amounts outside of this, including the Solidarity Payment cash gifts that have no restrictions on what they can be spent on.
Who do I talk to if I have any more questions?
You have several options here. The first would be to email MSF at email@example.com, noting the subject of your query clearly in your email.
The second would be to submit your question or appeal through Jamie, the virtual assistant that many have become familiar with on government websites. The third would be to call their hotline directly – if you are currently in Singapore you may call them at 1800-111-2222; if you are overseas, you will need to call them at +65 6253 7707
If your questions are specifically related to opening a CDA account, you may be able to reference MSF’s videos on this topic specifically by looking up their videos for Baby Bonus Online under the tag #BiteSizedBabyBonus. These videos can be found on the Facebook Baby Bonus Parenting Resources page.
Are you a young parent looking for expert financial planning advice? Our dedicated team of financial advisors is here to assist you in making informed decisions. Contact us today to secure your child’s future and maximize the benefits of the Singaporean Government’s Child Development Account top-up. Let us guide you towards financial stability and a brighter tomorrow for your family.