Baby Bonus CDA Account


Under the Baby Bonus scheme, the government matches the amount that you save in your child’s Child Development Account (CDA), dollar for dollar.

The matching contribution from the government is capped at $6,000 for your second child, and $12,000 for your third child. The amount is also $12,000 for your fourth child.

The CDA is sometimes also called Children Development Account.

To open the CDA account, you need to go to a POSB branch.

You can use the savings to pay for education and medical-related expenses for any of your children. See this for details.

See also my calculations on how much your children can get. (The total is a whopping $68k!)

When your child enters primary school, a Post-Secondary Education Account (PSE) will be created for your child. Unused savings in the CDA Account can * be transferred to the PSE Account.

The main purpose of the PSE Account is to help you save up for your child’s post-secondary education, i.e. for courses in ITEs, local polytechnics, JCs, and universities (including UniSIM).

Your contributions to the PSE Account will also be matched by the government, but subject to a combined CDA-PSE cap similar to the caps mentioned earlier: the government’s total co-funding for your second child, whether to CDA or PSE, will be capped at $6,000 (and $12,000 each for third child and fourth child).

The PSE Account will also earn the same interest rates as the CPF Special Account, which is currently set at 4%. (Straits Times, October 24, 2007)

* Parents have recently received letters saying that they have an option to withdraw the CDA savings when the child enters primary school.


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  1. Its really not fair that only kids born up to 2008 can choose to closed cda acct and withdraw all the money!! What abt after those born after 2008 ???
    Looks like the government knows that parents use these scheme as an INVESTMENT for themselves.

  2. I have a son born in 2009 and a girl born in 2011. I am wondering if I renunce my SG citizenship and my kids SG citizenshop, can I withdraw the funds in their CDA account? Will this be an automatic process, example, will the relevant banks receive some sort of notification that my children are no longer SG citizen and therefore the CDA account can be closed/funds withdrawn?

  3. Hi. My son was born in april 2014. Received the first cash give via my husband’s account. And deposit everything into my son’s cda account as i wasn’t sure whether we can use that money. Question – 2nd and 3rd cash gift of baby bonus will be credited to cda account or my husband’ s account?

  4. @Nur…hi there,regarding the cash gift,whatever cash u received will be for personal use.Same goes to 2nd n 3rd.Cda is whatever that u top up into the specific CDA that u opened in OCBC or Standard Chartered.Hope this help.

  5. Hi i juz gave birth on oct 2014,i did put in $50 in the CDA acc,so when will the government top up the money?if i already use the money for his checkup,will government know how much to top up?

  6. Hi am curious regarding my 2nd child that was born on year 2012. ive only received the cash gift of 3000 only. May i know how much exactly does the cash gift for my 2nd child.

  7. Hi, on behalf of a family member. I would like to know if parent can still claim baby bonus after child is a yr old? Cause child was born before parents were married? And if eligible, will there be any cut of the payment ect? Thanks…

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