The baby bonus scheme is financial support from the government to alleviate the costs of raising a child in Singapore. It comprises two parts – Baby Bonus Cash Gift and Child Development Account (CDA). In this article, I will be going through the details of the scheme so that it is easy for first-time parents to understand it. Let’s go! 🙂
Baby Bonus Cash Gift (BBCG)
Baby bonus cash gift is literally cash that you will receive in your designated bank account at specific time intervals. The total amount receivable will be SGD 11,000 for the first and second child and SGD 13,000 for the third and subsequent child. You may find the payout schedule below.
So, the question will be whether you are eligible for the Baby Bonus Cash Grant (BBCG). You will qualify for BBCG if you have a child. I meant your child has to be a Singapore Citizen. Also, you must be legally married to your spouse.
Child Development Account (CDA)
The second part of the Baby Bonus Scheme is the Child Development Account (CDA). Through CDA, you can receive the First Step Grant and Government co-matching for the amount you contribute. So, what is the First Step Grant? The First Step Grant is cash you will receive when you open a CDA account. The amount will be SGD 5,000 regardless of whether it is your first, second, or subsequent child. The Government co-matching means that for every dollar you deposit into the CDA account, the Government will also contribute one dollar. It can’t be any better because you double the amount saved! Nevertheless, you should note that there will be a limit on the amount of co-matching. You may refer to the table below for the maximum amount of co-matching.
Great! I have SGD 5,000 in the CDA account now. What can I use it for?
There are several ways to use the amount in the CDA account. We mainly use it for Ellysa Wong’s infant care fee. However, there are other places where you may use the CDA account. These include payment for vaccinations at Polyclinics, premiums for Medishield, and certain healthcare items in pharmacies.
Medisave Grant for Newborns
Medisave Grant may not be part of the Baby Bonus Scheme, but it is worth mentioning here. When you register for your child’s birth, the CPF Board will also open a Medisave account for them. At the same time, the CPF Board will deposit SGD 4,000 into the account.
So, what can you use this Grant for? This Medisave account works similarly to our adult’s Medisave account. You may use the Grant for vaccinations, inpatient hospital bills, and insurance premiums.
We upgraded Ellysa’s hospitalisation plan to a private one. And we are glad that we did. When Ellysa caught the COVID-19 virus, she received the best care at KKH Hospital without worrying about the medical bill. If you are currently expecting your first child, signing up for insurance for your newborns may be something that you wish to consider putting into your to-do list.
Conclusion
I hope this article has been helpful to you. Becoming a parent is not easy. However, having access to the right resources will make the parenting journey more manageable. I will continue sharing my experience as a first-time parent and hope the information will be helpful for soon-to-be parents.
Yanto Wong
