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
The CDA First Step Grant is $5,000 for a first or second child, credited within about 2 weeks of opening the account, without you needing to deposit anything first. A third or later child born from 18 February 2025 to 31 March 2027 gets $10,000 under the Large Families Scheme. Every baby born from 1 April 2027 gets $5,000, whatever the birth order.
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. These caps apply until 30 September 2027:
- 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 Grant in the account. From 1 October 2027 every cap becomes $5,000, and babies born from 1 April 2027 have a $5,000 cap from the start. If your child's cap is higher than $5,000, save up to it by 30 September 2027. Our free CDA calculator shows how much to put in each month.
What can the CDA be used for?
CDA savings can be spent at Approved Institutions on your child's needs: childcare, kindergarten and childminding fees, medical bills and prescribed medicine at approved hospitals, polyclinics and GP clinics, early intervention and special education fees, and assistive devices. Optical shops and retail pharmacies stopped taking CDA from 1 January 2026. The money can also pay for a sibling's approved expenses. For children born from 1 January 2015, the CDA stays open until the end of the year your child turns 16, and unused savings then move to a Post-Secondary Education Account. Our CDA spending tracker shows what is allowed and when your account closes.
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 CDA page and the SG Child Support Package page. MSF explains the optical shop and pharmacy change in its January 2026 notice.
See your cash payouts with the Baby Bonus calculator, 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 for a first or second child, credited without you needing to save anything first. A third or later child born from 18 February 2025 to 31 March 2027 gets $10,000, and every baby born from 1 April 2027 gets $5,000.
How does CDA co-matching work?
After the First Step Grant, the Government matches your own deposits dollar-for-dollar up to a cap. Until 30 September 2027 the cap is $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. From 1 October 2027 every cap is $5,000. 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, medical bills at approved hospitals, polyclinics and GP clinics, early intervention and assistive devices. Optical shops and retail pharmacies stopped taking CDA from 1 January 2026. It can pay for a sibling's approved expenses too, and unused funds move to a Post-Secondary Education Account when the CDA closes at the end of the year your child turns 16.
Is the CDA changing in 2027?
Yes. Under the SG Child Support Package, babies born from 1 April 2027 get a $5,000 First Step Grant and a $5,000 co-matching cap whatever their birth order. For children born earlier, the current caps hold until 30 September 2027 and become $5,000 from 1 October 2027. The CDA now stays open until the end of the year your child turns 16.
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.
