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What is Baby Bonus all about?

By Published On: July 18th, 2014
Pregnant woman has baby loading written on her belly

We would be lying through our teeth if we say that getting by in Singapore is easy peasy. And it definitely doesn’t help by becoming the world’s most expensive city either. With the generations ahead of us focusing more on the quality of life, having children puts them in a financial dilemma: it just does not make as much economical sense as it used to be in the past.

Well lucky for us, the government has stepped into the picture to lend us a helping hand and TA-DAH! The Baby Bonus Scheme is born! Now, can this scheme help us out and is it useful? Let’s find out and you shall be the judge.
The Baby Bonus Scheme comprises of two parts: A Cash Gift and a Child Development Account (CDA).
As for the Cash Gift, the government will give an “ang bao” of $6000 each for the 1st two child conceived and $8000 each for the subsequent two. These Cash Gifts will be disbursed in 3 instalments:

50% at birth;
25% when the child is 6 months old; and
25% when the child is 12 months old.

As for the CDA, it is simply a co-savings scheme for the children. The government will match dollar-for-dollar for the savings deposited into a special savings account by the parents. The CDA could be established at either OCBC or

Standard Charted, and co-savings are subject to caps as follows:
1. 1st & 2nd Child: $6000
2. 3rd & 4th child: $12,000
3. 5th child and more: $18,000

These funds could ultimately be used for child development needs at Approved Institutions registered with the Ministry of Social and Family Development (MSF). Approved uses of CDA funds include the following:

Fees for child care centres, kindergartens, special education schools and early intervention programmes
Medical expenses at healthcare institutions such as hospitals and GP clinics
Premiums for MediShield or Medisave-approved private integrated plans

Assistive devices
Eye-related products and services at optical shops
Approved healthcare items at pharmacies

Unfortunately though, these cash savings cannot be withdrawn in cash. And upon the 12th year, the CDA will be closed. Any remaining funds will be transferred to the Post-Secondary School Education Account (PSEA).
Baby Bonus kit will be available at your respective hospitals, or at the Immigration & Checkpoints Authority (ICA).
To conclude, one would agree that Baby Bonus do help to a certain extent, especially when it comes to defraying the initial costs of raising a child like buying diapers, milk powder and childcare fees. As for expenses to incur in the later phase of the childhood, very much is still dependent on ourselves. For more information, feel free to check out the links below. Good luck!