Raising kids is no easy task, especially when it comes to expenses. Luckily, here in Singapore we have the Baby Bonus Scheme, which aims to lessen the financial burdens of raising a family. Also known as the Child Development Co-Savings Scheme, this initiative gives parents monetary bonuses that can help with child rearing expenses. If you’re planning on starting a family or adding another little one to your lot, this is everything you need to know about the Baby Bonus Scheme in Singapore.
What is the Baby Bonus Scheme?
The Baby Bonus Scheme consists of three parts: a cash gift, a First Step grant, and government matching for the money you deposit in a Child Development Account (CDA). The cash gift is up to $8,000 for your first and second child and up to $10,000 for any subsequent children. The First Step grant is $3,000 and will be deposited in your CDA. Finally, the government will match each dollar you put into your CDA until your child is 12 years old with a maximum of $3,000 for your first and second child, $9,000 for your third and fourth child, and $15,000 for any subsequent children.
Who is Eligible for the Baby Bonus Scheme?
Couples who are legally married can register their children under the Baby Bonus Scheme as long as the children are Singaporean citizens and born after March 24, 2016. Single parents can also apply, although they are only eligible for the First Step grant and government matching, but not the cash payment. Parents of adopted children can also apply as long as the children meet the criteria.
How to Apply for the Baby Bonus Scheme
You can apply for the Baby Bonus Scheme online as early as eight weeks before your estimated delivery date or after your child is born and the birth is registered. You will need your SingPass, a valid birth certificate, marriage certificate, and bank account details for the cash gift. If your child was born or adopted overseas, you can apply after the adoption or citizenship process is complete.
How to Open a Child Development Account
When you fill out your Baby Bonus Scheme form, you can choose from three banks to open your CAD: DBS Bank, OCBC or UOB. Once your child is registered, the account will automatically be opened in three to five working days.
How Long Does it Take to Get the Cash Gift, Grant and Savings Match?
The cash gift will arrive in five payments spread over an 18-month period. You will receive either $3,000 or $4,000 (depending on your child’s birth order) within 10 working days of the birth of your child, and then payments ranging from $1,000 to $2,000 when your child is 6 months, 12 months, 15 months and 18 months old. The First Step grant will be deposited into your CAD in three to five working days after the birth is registered, and the government will match the money you deposit in your CAD within one month of the deposit.
Where to Use Your Baby Bonus Scheme Savings
Your cash gift can be deposited in a bank account of your choosing and used for whatever you like. However, the First Step grant and the money in your CAD can only be used for education and healthcare expenses for your child at Baby Bonus approved institutions. You can find a list of Approved Institutions here.
We do have an amazing range of baby gifts in Singapore, so be sure to check out our catalogue!