MONEYMAP 046: Baby Bonus Scheme

| Simple Guide to Baby Bonus Scheme |

Here's a layman guide to how much money the Government will be giving you to support raising your child :)

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► Transcript:
Hey guys, this is Jiale!

If you have just welcomed the birth of your newborn child, this video is for you.

You know when you have a baby, the Government will give you money to lighten the cost of raising your child, also known as the Baby Bonus Scheme.

To be eligible, the parents of the baby have to be:
• 1. Lawfully married
• 2. The baby is a Singapore Citizen at time of birth.

Baby Bonus Scheme is made up of 2 parts: Cash Gift and Child Development Account. (In short, CDA)

Now the Cash Gift is for flexible usage, while the CDA is for educational and healthcare expenses.

Let's start with the Cash Gift, shall we?


For 1st and 2nd child, you will get a Cash Gift of $8,000 in 5 installments over 18 months (into any bank account you wish)


The schedule is as follows:

1st payment (within 10 working days): $3,000
2nd payment (6th month): $1,500
3rd payment (12th month): $1,500
4th payment (15th month): $1,000
5th payment (18th month): $1,000

The second part of Baby Bonus Scheme is the CDA.

CDA is a special savings account for your child.

The Government will contribute to the CDA in the form of a CDA First Step grant of $3,000, plus another additional dollar-for-dollar matching, up to $3,000, when you continue to save in the CDA.

You can use these funds at Baby Bonus Approved Institutions like Childcare centres, kindergartens, hospitals, clinics, pharmacies, optical shops and more.

All you have to do is log into the Baby Bonus website via SingPass, fill in an online form and indicate which one of the 3 local banks you wish to open your account with.

All the 3 local banks offer 2% p.a. interest rates on your CDA savings.

But you might not want to deposit too much into the CDA, because unlike the Cash Gift, You cannot withdraw cash from the CDA account.
To use the CDA savings, you can use a NETS card issued by the CDA bank or arrange GIRO directly with the approved institutions.

Note that the CDA will be closed at the end of the year your child turns 12, and any unused CDA balance will be transferred to the child’s Post-Secondary Education Account (PSEA).

And the PSEA will be closed in the year your child turns 31. Any unused balance in the PSEA will be ultimately transferred into your child’s CPF-Ordinary Account (CPF-OA).

You join the Baby Bonus Scheme as early as 2 months before your EDD. So what are you waiting for?

Now here’s all I have for this episode of MONEYMAP, I wish your child good health. See you in the next episode.


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► About Jiale:
Throughout his 7-year career as an adviser, Kah Lok found that clients and the people he met asked him similar questions. He figured the best way to help his clients and the community was to film the answers in a series of videos so that others could access the knowledge and information they required 24/7.

That led to the creation of MONEYMAP, where he filmed a series of three-minute educational videos revolving around financial literacy for the benefit of the general public. As of May 2019, he produced 40 such videos.

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