The Child Development Account (CDA): How It Works in Singapore
The Child Development Account is one of the most valuable parts of the Baby Bonus scheme. Here is how it works and how to get the most from it.
What is the CDA?
The Child Development Account (CDA) is a special savings account for your child, part of the Baby Bonus scheme. It has two boosts from the Government: a starting grant you receive without saving anything, and dollar-for-dollar matching on the money you put in, up to a cap.
CDA First Step grant
Every eligible child receives the CDA First Step grant of $5,000, credited without you needing to deposit anything first. It is essentially free money to start the account.
Government co-matching, by birth order
On top of First Step, the Government matches your own savings dollar-for-dollar, up to a cap that rises with birth order:
- 1st child: up to $4,000 matched
- 2nd child: up to $7,000 matched
- 3rd and 4th child: up to $9,000 each matched
- 5th and subsequent child: up to $15,000 each matched
So for a first child, if you deposit $4,000, the Government adds $4,000, giving $8,000 plus the $5,000 First Step in the account.
What can the CDA be used for?
CDA savings can be spent at Approved Institutions on your child's needs, including childcare and preschool fees, healthcare such as at clinics and pharmacies, eligible insurance, and assistive or educational needs. Funds can also be shared across siblings' accounts. Unused savings are transferred to a Post-Secondary Education Account when the child is older.
How to open and manage it
You sign up for the Baby Bonus scheme (most easily via the LifeSG app) around your child's birth, which opens the CDA. You then top it up through your chosen bank to earn the matching. Confirm the current grant amounts, caps and approved uses on the official LifeSG Baby Bonus site, as scheme details are updated from time to time.
Put real numbers to it with the baby cost & Baby Bonus estimator, and see the full picture in our Baby Bonus & government support guide. For ongoing childcare help, try the childcare subsidy calculator.
Frequently asked questions
How much is the CDA First Step grant?
The CDA First Step grant is $5,000, credited to your child's Child Development Account without you needing to save anything first.
How does CDA co-matching work?
After First Step, the Government matches your own deposits dollar-for-dollar up to a cap that depends on birth order - about $4,000 for the 1st child, $7,000 for the 2nd, $9,000 for the 3rd and 4th, and $15,000 for the 5th and beyond. You only get the match on what you actually deposit.
What can I spend CDA money on?
CDA savings are used at Approved Institutions for your child's needs - childcare and preschool fees, healthcare, eligible insurance and similar. It can be shared between siblings, and unused funds later move to a Post-Secondary Education Account.
How do I open a CDA?
Sign up for the Baby Bonus scheme, most easily through the LifeSG app, around your child's birth. This opens the CDA, which you then top up via a participating bank. Confirm current details on the official LifeSG Baby Bonus site.
