Raising a child in Singapore comes with its challenges, especially when it comes to financial planning. To support parents, Singapore’s Baby Bonus Scheme provides cash incentives and savings contributions to help manage child-raising expenses.
If you’re expecting or planning for your child’s future, understanding how the Baby Bonus in Singapore works can ease financial concerns and ensure you get the benefits you’re entitled to.
What Is Singapore’s Baby Bonus Scheme?
The Baby Bonus Scheme in Singapore is a government initiative designed to provide financial support for parents raising children. It aims to reduce the financial strain associated with childbirth and early childhood expenses by offering cash incentives and savings benefits. The scheme consists of two key components:
- Cash Gift – A direct financial incentive given to parents after childbirth to help cover immediate costs like diapers, formula, and medical check-ups. The amount varies depending on the number of children in the family.
- Child Development Account (CDA) – A savings account opened for the child, where the government matches parents’ contributions dollar-for-dollar, up to a set limit. The funds in this account can be used for approved expenses such as childcare, education, medical services, and healthcare needs at approved institutions.
The Baby Bonus in Singapore is part of the government’s efforts to encourage parenthood by making it more financially manageable for families. By providing both immediate cash relief and long-term savings benefits, it helps parents invest in their child’s early years.
Who Is Eligible for the Baby Bonus in Singapore?
Not all parents automatically qualify for the Baby Bonus Scheme in Singapore. There are specific criteria that must be met to receive these benefits:
1. Parental Citizenship Requirement
At least one parent must be a Singapore citizen at the time of the child’s birth or at the time of application.
2. Child’s Citizenship Requirement
The child must be a Singapore citizen at birth. If the child is born overseas or to parents of mixed nationality, they must obtain Singapore citizenship before turning 12 years old to qualify for the scheme.
3. Legal Marital Status
The scheme primarily supports children born within a legally recognised marriage. Unmarried parents may face restrictions in accessing the full benefits of the Baby Bonus.
4. Application Timing
Parents must apply for the scheme through the Baby Bonus Online Portal, and registration can begin as early as eight weeks before the expected delivery date.
How Much Can You Receive Under the Baby Bonus Scheme in Singapore?
The amount parents receive under the Baby Bonus in Singapore depends on the number of children they have. The scheme provides financial support in two main ways:
1. Cash Gift
The government provides a one-time cash gift to help parents with immediate expenses. The breakdown is as follows:
- First and Second Child: $11,000
- $8,000 disbursed in the first 18 months
- An additional $3,000 when the child turns two
- Third Child and Beyond: $13,000
- $10,000 disbursed in the first 18 months
- An additional $3,000 when the child turns two
The cash gift is paid out in stages to help parents manage ongoing expenses rather than receiving a lump sum all at once.
2. Child Development Account (CDA) Contributions
The CDA is a savings account set up under the child’s name, where parents can deposit money and receive matching contributions from the government. The amount matched depends on the birth order of the child:
- First Child: Up to $5,000
- Second Child: Up to $10,000
- Third and Fourth Child: Up to $15,000
- Fifth Child and Beyond: Up to $18,000
This means if parents deposit the full eligible amount, they will effectively double their child’s savings, as the government will match every dollar contributed.
The funds in the CDA can only be used for specific expenses, including:
- Preschool and childcare fees
- Healthcare expenses at approved clinics and hospitals
- Special education needs
- Tuition and school fees
How to Apply for the Baby Bonus in Singapore
Applying for Singapore’s Baby Bonus Scheme is a straightforward process that can be completed online. Parents can begin the application process as early as eight weeks before the expected delivery date. Here’s a step-by-step guide to ensure a smooth application:
Step 1: Register on the Baby Bonus Online Portal
- Visit the Baby Bonus Online Portal to begin the application.
- You will need your Singpass to log in and complete the registration.
Step 2: Provide Required Details
- Parents must provide personal details, including:
✔ Parent’s full name and identification details
✔ Child’s birth details (if already born)
✔ Marital status information
✔ Bank account details for cash gift deposits
Step 3: Select a Bank for the CDA
- Parents will need to choose a bank to open the Child Development Account (CDA). The participating banks include:
✔ DBS/POSB
✔ OCBC
✔ UOB
The CDA must be activated before government matching funds are received.
Step 4: Link Your Bank Account for Cash Gift Payments
- The cash gift will be disbursed in instalments. To receive the funds smoothly, ensure the linked bank account is active and belongs to the parent applying for the Baby Bonus.
Step 5: Track Payments and Manage the CDA
- Once the application is approved, parents can check their Baby Bonus balance and transaction history on the Baby Bonus Online Portal.
- CDA funds can be used at approved institutions for child-related expenses.
Step 6: Continue Saving in the CDA to Maximise Benefits
- Parents can deposit additional savings into the CDA to receive full matching benefits from the government.
- Funds remain in the account until the child turns 12 years old, after which unused funds may be transferred to the Post-Secondary Education Account (PSEA).
Conclusion About Baby Bonus In Singapore
The Baby Bonus in Singapore is a meaningful support system for parents, helping to alleviate the financial burdens associated with raising children. By understanding eligibility, payouts, and application steps, parents can make the most of this scheme.
If you have legal concerns related to child support, custody, or financial disputes, Tembusu Law has the best Divorce and family lawyers in Singapore to guide you through the legal process.
Contact us today for expert advice.
Frequently Asked Questions About Baby Bonus In Singapore
How Do I Register For The Baby Bonus In Singapore?
You can register via the Baby Bonus Online Portal as early as eight weeks before your child’s estimated birth date. The process is straightforward and requires the parent’s and child’s details.
What Happens To The Baby Bonus Funds If Parents Divorce?
If parents Divorce, the usage of Singapore’s Baby Bonus Scheme funds may be a point of discussion, particularly if there is a dispute over the child’s welfare. The Court may decide on the distribution based on the child’s needs.
Can Non-Singaporean Parents Receive The Baby Bonus?
At least one parent must be a Singapore citizen for the child to qualify. If both parents are non-citizens, the child is not eligible for the scheme.
What Can The Child Development Account Funds Be Used For?
The CDA funds can be used for childcare, medical expenses, education, and approved institutions such as hospitals, kindergartens, and special education schools.
Do I Have To Save Money In The Child Development Account To Receive The Government’s Matching Amount?
Yes, the government only matches funds that parents deposit into the Child Development Account, up to the allocated cap.
What Happens If My Child Becomes A Singapore Citizen Later?
If your child obtains Singapore citizenship before turning 12 years old, they can still qualify for the Baby Bonus, provided other conditions are met.
