Budget 2015: CDA top-up
In this year's Budget Statement, the Minister for Finance had announced that Singaporean children aged 6 and below in 2015 will benefit from a top-up to their Child Development Accounts (CDAs), which will help families pay for pre-school fees.
Children bring joy to the family. The Baby Bonus Scheme, which was introduced on 1 April 2001, supports parents' decision to have more children by helping to lighten the financial costs of raising children. The Baby Bonus Scheme consists of two components - a cash gift and a Child Development Account.
As part of the Marriage and Parenthood Package 2013, the cash gift quantum for children born on or after 26 August 2012 will be increased and the payment schedule will be revised and shortened. You will get a cash gift of up to $6,000 each for your 1st and 2nd child and $8,000 each for your 3rd and 4th child. The cash gift will be disbursed in 3 instalments over 12 months from the birth of your child, to help parents defray the new or additional expenses arising from your newborn. You will receive the first instalment (50% of the amount) within 3 week after we have received your completed forms, and the subsequent two instalments (25% each) when your child is approximately 6 and 12 months of age.
Child Development Account (CDA) for children eligible for Baby Bonus
The CDA is a special savings account that you open at any OCBC Bank or Standard Chartered Bank (Singapore) Limited branch for your child who is eligible for CDA. You can save in the CDA any time until 31 December in the year your child turns 12 years of age. The savings will be matched dollar-for-dollar up to the cap of $6,000 each for the first and second child, $12,000 each for the third and fourth child and $18,000 each for the fifth and subsequent child. The Government will match your savings in the following month.
We thank you for participating in the Child Development Co-savings Scheme, and hope you have found it useful. As part of the Government's efforts to save the environment, we will stop sending hardcopy updates on Government's matching contribution to your child's CDA and the remaining cap, from 1 June 2014. Should you wish to check on the status of your CDA remaining cap, you may login to do so. You would also be able to monitor your CDA deposits and the matching contribution by Government, through your bank statements.
The savings in the CDA may be used to pay approved expenses for all your children at Approved Institutions registered with the Ministry of Social and Family Development (MSF) under the Baby Bonus Scheme. These include child care centres licensed by MSF, kindergartens and special education schools registered with the Ministry of Education (MOE) or the Council for Private Education (CPE), early intervention programmes registered with the National Council of Social Service (NCSS) or SG Enable, healthcare institutions licensed under the Private Hospitals and Medical Clinics (PHMC) Act, pharmacies registered with the Health Sciences Authority (HSA), optical shops registered with the Accounting and Corporate Regulatory Authority (ACRA) and assistive technology devices providers registered with ACRA or known to either the Ministry of Health (MOH) or SG Enable. The CDA savings can also be used to purchase MediShield or Medisave-approved private integrated plans for all your children.
Baby Bonus One-Stop Service
To make it more convenient for you to join the Baby Bonus Scheme, a one-stop service is available at the birth registration counters at the hospitals and the Immigration & Checkpoints Authority (ICA). The hospitals are Gleneagles Hospital, KK Women’s and Children’s Hospital, Mount Alvernia Hospital, Mount Elizabeth Hospital, National University Hospital, Parkway East Hospital, Raffles Hospital, Singapore General Hospital and Thomson Medical Centre.
All our correspondences to the trustees will be sent to the trustee's official address that is registered with the Immigration and Checkpoints Authority (ICA). Please update your official address with ICA to ensure that you receive all Baby Bonus correspondence from MSF.
If you are moving overseas and choose to retain your local address or use the address of your family member or friend, please ensure that they check the mailbox regularly and our correspondences are relayed to you promptly.
For more information on Baby Bonus, click here -> FAQ.
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