The Baby Bonus and the Child Development Account (CDA) are related but distinct schemes in Singapore designed to support parents in financing the costs of raising a child.
- Baby Bonus Scheme: This is a government initiative that provides cash gifts and benefits to help defray the costs of raising children. It comprises several components:
- Cash Gift: A one-time cash gift given to parents upon the birth of their child, which is typically deposited into the mother’s bank account.
- Child Development Account (CDA) First Step: A one-time initial deposit into the Child Development Account.
- CDA Benefits: Subsequent cash gifts that are co-saved by the government into the Child Development Account to match parental contributions up to a certain cap. These funds can be used for approved expenses related to the child’s development.
- Child Development Account (CDA): The CDA is a special savings account meant for children in Singapore. It is opened under the child’s name, and the funds can be used for specific purposes related to the child’s development, such as childcare, healthcare, and educational expenses. Parents can make deposits into the CDA, and the government provides co-savings through cash gifts as part of the Baby Bonus Scheme.
In summary, while the Baby Bonus Scheme includes various benefits and cash gifts for parents, the Child Development Account (CDA) is a savings account specifically intended to support child development, where the government provides co-savings to incentivize savings by parents for their child’s needs.