Baby Bonus in Singapore (updated 2013)

Taken from Heybaby - the government website on having and raising children in Singapore. Just to act as a reference for my children in future - haha.... I am thinking too far isn't it? =}

The Baby Bonus Scheme is designed to help families defray the costs of raising a child. It comprises a cash gift and a Child Development Account (CDA), a special co-savings scheme for children.

Enhanced Baby Bonus Cash Gift

For Singapore Citizen children born on or after 26 Aug 2012, the Baby Bonus cash gift has been enhanced as follows:

Enhanced Baby Bonus Cash Gift

Child Order	Born between 17 Aug 2008 and 25 Aug 2012 (for each child)	Born on or after 26 Aug 2012 (for each child)
1st & 2nd Child	$4,000	$6,000
3rd & 4th Child	$6,000	$8,000

Additionally, the cash gift will now be disbursed more quickly. It will be given out in 3 instalments over 12 months following the child’s birth (instead of 4 instalments over 18 months previously): 

• 50% at birth;

• 25% when the child is 6 months old; and

• 25% when the child is 12 months old.

Your child is eligible for the enhanced Baby Bonus cash gift if:

• Your child is a Singapore Citizen born on or after 26 Aug 2012;

• The child’s parents are lawfully married; and

• The child is the 1st to 4th child of the mother.

Baby Bonus CDA
The Baby Bonus Child Development Account (CDA) is a co-savings scheme for children, where savings deposited by parents into a special savings account called the CDA are matched dollar-for-dollar by the Government, up to a specified ceiling, as indicated below:

CDA Government Co-Savings Caps

Child Order	From 17 Aug 2008 onwards (for each child)
1st & 2nd Child	$6,000
3rd & 4th Child	$12,000
5th Child & beyond	$18,000

CDA savings funds can 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

As part of the Baby Bonus enhancements, from 1 Jan 2013, CDAs for children born on or after 1 Jan 2006 will remain open until 31 Dec of the year the child turns 12. Parents will thus have 6 more years to save into the CDA and use the CDA funds for the child and his/her siblings.

Your child is eligible for the Baby Bonus CDA if:

1. Your child is a Singapore Citizen; and
2. The child’s parents are lawfully married.

What can I use for the CDA for?The money may be used on all your children, even those without a CDA, to pay for their child development needs at Approved Institutions (AIs) that have registered with MSF under the Baby Bonus Scheme. These include:

• Child care centres

• Kindergartens and special education schools registered with the Ministry of Education (MOE) or Council for Private Education (CPE)

• Early intervention programmes registered with the National Council of Social Service (NCSS) or Centre for Enabled Living (CEL)

• Healthcare institutions licensed under the Private Hospitals and Medical Clinics (PHMC) Act

• Premiums for MediShield or Medisave-approved private integrated plans

• Pharmacies licensed by the Health Sciences Authority (HSA) for the purchase of approved healthcare items

• Optical shops registered with the Accounting and Corporate Regulatory Authority (ACRA) for the purchase of approved optical appliances

• Providers of assistive devices

Please note that the funds cannot be withdrawn in cash. Withdrawals from the CDA can only be made via interbank GIRO or NETS at Approved Institutions (AIs) only:

• Payment via interbank GIRO: For payments via interbank GIRO, please enquire with your AI. You will need to fill up an application form to use interbank GIRO for the CDA and submit it to your AI.

• Payment via NETS: The bank you opened the CDA with will issue you a Baby Bonus NETS Card. While you can use this card to make NETS payments at AIs from your child's CDA, it cannot be used to make payments at other places, or to withdraw cash at ATMs.