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For Parents
Overview
1.
How does the Baby Bonus Scheme work for children born on or after 17 August 2008?
Your child will enjoy benefits under the Baby Bonus Scheme from birth till his sixth birthday. The total Baby Bonus benefits are shown in Table 1.
Table 1: Total Baby Bonus Benefits by Birth Order
Birth Order
Cash Gift
from Government
Maximum Matching
Government Contribution
Total
First and Second
$4,000
$6,000
Up to $10,000
Third
$6,000
$12,000
Up to $18,000
Fourth
$6,000
$12,000
Up to $18,000
Fifth and beyond
-
$18,000
Up to $18,000 for each child
Cash Gift
The cash gift is given out in 4 equal instalments over 18 months from the birth of your child so that you can use the cash for new expenses arising from your newborn. The first cash gift is given within 3 weeks after MCYS receives your properly completed forms. The subsequent cash gifts are given when your child is approximately 6, 12 and 18 months of age. The actual date of credit is usually within 2 weeks before or after your child turns 6, 12 or 18 months old. You will be notified by post after the money has been credited into your account. See Table 2 for the cash gift schedule.
The cash gift will be deposited directly into the nominated bank account of the parent or another person (the Account Holder). The Account Holder must be at least 21 years of age and is not a bankrupt. Where the child is also eligible for the Children Development Account (CDA), the Account Holder must be the same person as the trustee who is managing the CDA. Please note that the amount of cash gift may be pro-rated if the child is not a citizen by birth.
Table 2: Cash Gift Schedule
Birth Order
Within 3 weeks after MCYS receives your completed forms
Approximate Age of Child
6 months
12 months
18 months
Total
First and Second
$1,000
$1,000
$1,000
$1,000
$4,000
Third and Fourth
$1,500
$1,500
$1,500
$1,500
$6,000
Savings in the Children Development Account
Children Development Account (CDA)
This is a special savings account. MCYS will provide you with information about the opening of the CDA when your child joins the Scheme. All your children born on or after 17 August 2008 will be eligible to open a CDA. You may choose to open your child's CDA with Oversea-Chinese Banking Corporation Limited (OCBC Bank) or Standard Chartered Bank (Standard Chartered). A CDA can only be open with one of these banks. The person who manages the CDA on behalf of the child is called the trustee. As a parent, you can nominate yourself, your spouse or another person to be the trustee. The trustee must be at least 21 years of age and is not a bankrupt.
Saving for Your Child's Future
You can save any time in the CDA until 31 December in the year your child turns 6 years of age either in one lump sum or by instalments. Deposits can be made in any of the following ways:
- Cash, cheque or via Standing Order;and
- Funds transfer through the ATMs of OCBC Bank or Standard Chartered (depending on your chosen CDA bank), phone banking or internet banking.
Matching Government Contribution
The savings you contribute to your child's CDA will be matched dollar-for-dollar up to the cap of $6,000 each for a first and second child, $12,000 each for the third and fourth child and $18,000 each for the fifth and subsequent child. Please note that the amount of matching Government contribution may be pro-rated if the child is not a citizen by birth.
The savings will be matched in the following month. For example, if you deposit $500 into the CDA in January 2009, the Government will make the matching contribution of $500 around the third week of February 2009. Kindly note the bank's requirements with regard to the cut-off time for deposits made on the last working day of the month.
For the Government to make a matching contribution, it is your total savings (deposits) into the CDA that counts, not how much is left after withdrawals. Do note that interest earned is not considered as a contribution and will not be matched. Savings above $6,000 each for the first and second child, $12,000 each for the third and fourth child and $18,000 each for fifth and subsequent child will not be matched.
The unused balance in your child's CDA will be transferred to his or her Post-Secondary Education Account (PSEA) in the year your child turns 7 years of age. You may continue to contribute to the PSEA until your child turns 18 years of age and receive the Government's matching contributions subject to the combined CDA/PSEA matching contribution cap of up to $6,000 each for the first and second child, up to $12,000 each for the third and fourth child and up to $18,000 each for the fifth and subsequent child. The funds in the PSEA can be used to pay fees for post-secondary education in Singapore for your child and his or her siblings. The PSEA is under the purview of the Ministry of Education (MOE). More information on MOE can be found at MOE's website at
http://www.moe.gov.sg.
Uses for the funds in the CDA
The money may be used by all your children to pay for:
1) Fees at Approved Institutions which have registered with MCYS under the Baby Bonus Scheme:
a) Child care centres;
b) Kindergartens and special education schools registered with the Ministry of Education (MOE);
c) Early intervention programmes registered with the National Council of Social Service (NCSS); and
d) Healthcare institutions licensed under the Private Hospitals and Medical Clinics (PHMC) Act.
2)MediShield orMedisave-approved private integrated plans.
Click here -> Approved Institutions to search for the Approved Institutions.<font<<<<> Approved Institutions can be identified by an Approval Letter displayed at their premises.
The funds cannot be withdrawn in cash. Withdrawals from the CDA is made via interbank GIRO and NETS at Approved Institutions only. For payments via interbank GIRO, please enquire with your Approved Institution. You will need to fill up an application form to use interbank GIRO and submit it to your Approved Institution. The bank will issue you a Baby Bonus Card. You can use this card to make NETS payments to AIs from your child's CDA. It cannot be used to make payments at other places or to withdraw cash at ATMs.
The funds can also be used for principal-protected Singapore Dollar fixed or time deposit accounts approved by MCYS and offered by OCBC Bank and Standard Chartered. You may enquire directly with your chosen CDA bank on the use of CDA funds for such deposit accounts. The full amount deposited in the fixed or time deposit accounts, together with any interest earned, must be returned to the CDA upon expiry of the term of the accounts, or before the CDA is closed, whichever is earlier. The CDA funds cannot be used to pay for any penalties due to the trustee's premature withdrawal or termination of the fixed or time deposit accounts. The penalty, if any, will be recovered from the trustee directly
