All Singapore Citizens are eligible for a Baby Bonus payout and Child Development Account to defray the cost of raising their children. We bring you the low-down on what Baby Bonus is all about.
Raising children is one of the most transformative experiences in life. As a parent, you hope to nurture and raise your children in the best way possible, and to provide them with everything that they need. But we know this is not always easy and requires financial muscle.
The good news is that Singapore Citizens are eligible for the Baby Bonus scheme. It’s a helping hand to provide for your child’s upbringing. In this post, we take an in-depth look at the scheme, eligibility, and how to apply.
Baby Bonus Scheme
The Baby Bonus helps reduce the financial burden of raising children. It has two main components: the bonus cash gift and the Child Development Account (CDA).
Bonus cash gift
The Baby Bonus cash gift is money you receive to cater to the child’s needs. Children born on or after 1st January 2015 are eligible for the enhanced cash gift. The good news is that you get to decide how to allocate the money, so if you want, you can use the money to settle the most urgent needs. The bonus cash gift is disbursed over 18 months after applying for it.
The table below shows how you can expect to receive the cash gift.
|Disbursement milestone||1st and 2nd child||3rd and subsequent children|
|7 to 10 days after registration of the child for the scheme||S$3,000||S$4,000|
|Child is 6 months old||S$1,500||S$2,000|
|Child is 12 months old||S$1,500||S$2,000|
|Child is 15 months old||S$1,000||S$1,000|
|Child is 18 months old||S$1,000||S$1,000|
|Total received||S$ 8,000||S$10,000|
To get the cash gift, you can register for it up to eight weeks before the child’s birth.
Child Development Account (CDA)
The CDA is a means to save for the child’s education and health expenses at a selected institution. Every child born after 24th March 2016 is eligible to receive a S$3,000 grant into a savings account. The government will then match every S$1 that parents contribute to the account. The matching is capped at a maximum amount, and will only be done up till the child turns 12 years old.
The CDA account is automatically opened when the child is born; you have to choose from DBS, POSB, OCBC, or UOB to manage the account.
The table below gives more details on how CDA works.
|Grant type||1st child||2nd child||3rd and 4th child||5th and subsequent children|
|Maximum government matching amount||S$3,000||S$6,000||S$9,000||S$15,000|
|Total maximum support you can receive||S$6,000||S$9,000||S$12,000||S$18,000|
You will receive a monthly statement on CDA transactions. Alternatively, log onto Singpass to view the statement.
Baby Support Grant
The Baby Support Grant is a one-off payment of S$3,000 for Singaporean parents who receive their bundle of joy between 1 October 2020 and 30 September 2022. It’s meant to help cushion parents from the economic effects of the pandemic.
If your child’s Estimated Delivery Date (EDD) was 1 October 2020, but the child was born earlier, you are still eligible for the grant. Email a certified copy of the EDD to email@example.com for review and consideration, with the following details:
- Name of the mother and IC number
- Clinic’s name
- Doctor’s name
If the application is approved, you will receive the grant in 7 to 10 working days.
This grant will supplement the bonus scheme, to further aid parents during the pandemic. You will receive the grant in the child’s CDA account.
In summary, here is what you can expect to get from the Baby Bonus Scheme:
|Payout type||1st child||2nd child||3rd child/4th child||5th and subsequent children|
|CDA first step||S$3,000||S$3,000||S$3,000||S$3,000|
|Dollar for dollar matching||Up to S$3,000||Up to S$6,000||Up to S$9,000||Up to S$15,000|
|Baby support grant||S$3,000||S$3,000||S$3,000||S$3,000|
|Total payout||Up to S$17,000||Up to S$20,000||Up to S$25,000||Up to S$31,000|
You can expect the following payouts:
- Bonus cash gift: Seven days after you register your child’s birth. Disbursement is spread over 18 months.
- CDA First Step Grant: Three to five days after registering your child’s birth. The funds can only be used to cater to the child’s education and healthcare expenses. You can transfer the balance in the CDA account after 12 years to a post-secondary education account.
- Dollar-for-dollar matching: You can deposit the money up till when the child turns 12 years old. The government will match any deposit within two weeks.
- Baby Support Grant: You can expect to receive the grant one month after enrolment into the Baby Bonus Scheme.
Applying for the Baby Bonus Scheme
Children are eligible for the bonus scheme if:
- They are Singapore Citizens
- Parents are legally married
You can check a child’s eligibility online.
Unfortunately, single parents are not eligible for the bonus schemes. However, they still qualify for the CDA First Step Grant and dollar-for-dollar matching.
Follow these simple steps to apply for the Baby Bonus Scheme:
First, ensure you have the following documents:
- Valid marriage certificate
- Details of the account holder for the cash gift
- Personal details of the CDA trustee
Then proceed with these steps:
- Prepare your child’s birth certificate if your marriage happened overseas.
- Confirm the eligibility of your child and visit the Baby Bonus website.
- Click on the ‘Join’ link on the website, and it will redirect you to the Singpass log-in page.
- Log in to Singpass and complete the application form.
- After filling in all the essential details, click submit.
The parents have to decide the following:
- Who will be the nominated bank holder to receive the cash gift?
- Who will be the CDA account trustee to manage the account? The CDA trustee must be over 18 years old and should not be bankrupt.
You can sign up for the Baby Bonus Scheme online two months before the baby is born. When you register the birth of your child, a CDA account will automatically be opened. You will receive the CDA account details in three to five days.
You can start saving money in the CDA account as soon as you receive the details. The government will top it up dollar for dollar until you attain the maximum amount. Don’t miss out on this opportunity to make an investment towards your child’s future.
How to use the CDA money
Note that you can only use the money in the CDA for healthcare and educational purposes at approved centres. Spend that Baby Bonus cash wisely!
Here’s where and how you can utilise the CDA funds:
- Childcare and preschool education: You can utilise government subsidies and tap on the CDA to pay school fees.
- Special needs: If you have a special needs child, you can use the CDA funds to purchase assistive technology. You can use the money to buy hearing aids and walking aids.
- Insurance cover: Invest in insurance cover for your child using the CDA funds. Insurance covers may accrue a higher interest than the CDA fund accounts, and the child will have a cover against conditions that may develop. Ensure the insurance package is an approved one.
- Medical expenses: The child’s outpatient and inpatient expenses can be offset using the CDA funds at approved institutions.
Other childcare subsidies and benefits for Singapore Citizens
In addition to the baby bonus, you can get other subsidies and benefits as a Singaporean.
Parenthood Tax Rebate
To qualify for the Parenthood Tax Rebate (PTR), you must be a tax-paying citizen who is either married, divorced or widowed. Below is the schedule of tax rebates you can enjoy.
|Child born 2004–2007||Child born from 2008 onwards|
|3rd and 4th child||S$20,000 per child||S$20,000 per child|
|5th and subsequent children||S$0||S$20,000 per child|
Medisave grants for newborns
A grant of S$4,000 is deposited to all Singaporean newborns’ CPF Medisave accounts. You can use the money to pay for MediShield Life premiums, recommended vaccinations, and treatment in approved outpatient treatment facilities.
Basic infant care and childcare subsidies
Singapore children enrolled in infant care and childcare in an Early Childhood Development Agency-approved centre are eligible for subsidies. They get a basic subsidy of S$600 for infant care and S$300 for childcare.
Kindergarten fee assistance scheme
Singaporean children from low-income families can access subsidies, ranging from S$21 to S$170, to attend kindergarten. The subsidies are provided to families with a per capita income of S$3000 and below.
Maid levy concessionary rate
If you hire a maid to care for your child, you will be eligible for the concessionary levy of S$60 per month. The child has to be 16 years old or below.
In conclusion, although the Baby Bonus was partly initiated to deal with Singapore’s low birth rate, you can use it wisely to improve the well-being of your child. The subsidies and grants can help defray the cost of living, especially during the pandemic.
To help you get the most out of the Baby Bonus subsidies, check out our comparison of the best savings accounts. These will help you maximise your savings, boosting your efforts in providing for your child.
Read these next:
Baby Insurance: What’s Worth Buying for Your Newborns In 2022?
Newborn In The New Year: All The Cash Gifts You New Parents Can Look Forward To
A Guide To Maternity Insurance For Mums-To-Be (And Panicky Dads-To-Be)
Insurance Plans All New Parents Need in Their Portfolio
How to Tell You’re Financially Ready to Have Kids in Singapore