Understanding the Child Development Account (CDA) in Singapore

The Child Development Account (CDA) is a special co-savings account for Singapore Citizen children. It sits with the cash support that the SG Child Support Package will take over from the Baby Bonus Scheme. A First Step Grant is deposited when the account is opened. After that, the government matches what you save, dollar for dollar, up to a cap. Unlike the cash payout, CDA funds cannot be withdrawn as cash. They are spent at Approved Institutions on education and healthcare for your child or a sibling.

The cash side is changing too. From 1 April 2027 the $11,000 or $13,000 Baby Bonus cash gift becomes a $10,000 Baby Gift, paid in two tranches in the first year. LifeSG still enrols children under the Baby Bonus Scheme, and enrolled children move to the package automatically. See our Baby Bonus article for that payout schedule, and confirm the figures below before you save.

What is the CDA?

The CDA is opened through Baby Bonus enrolment, not a separate MSF form. Apply on the LifeSG website or app — bundled with birth registration for a newborn in Singapore, or via Apply for Baby Bonus if the birth is already registered. You choose one participating bank: POSB/DBS, OCBC, or UOB.

After enrolment, the applicant gets email and LifeSG-app instructions to finish opening the CDA and Child Savings Account (CSA) in the bank's app or internet banking. That parent becomes the CDA trustee. POSB/DBS typically needs an existing customer account first; OCBC and UOB generally allow new customers to open online, with in-person steps for some foreigners and overseas addresses.

The First Step Grant is deposited automatically within about two weeks of opening — no initial savings required. Later deposits are co-matched within about two weeks, excluding public holidays. Interest is not matched.

How much can you receive in total?

How much CDA matching Singapore parents can receive is changing. From 1 April 2027, a child born on or after that date gets a $5,000 First Step Grant and up to $5,000 in co-matching, the same for every birth order. The extra $10,000 First Step Grant for a third or later child stops from April 2027. The account then stays open until the end of the year the child turns 16.

For a child born from 1 January 2015 to 31 March 2027, the existing matching cap stays until 30 September 2027. From 1 October 2027 that cap becomes $5,000. Until those dates, LifeSG still lists the birth-order amounts below.

• First child: First Step Grant $5,000; matching cap $4,000 (government total $9,000; about $13,000 in the account if you save to the cap).
• Second child: First Step Grant $5,000; matching cap $7,000 (government total $12,000; about $19,000 including your savings).
• Third and fourth child: First Step Grant $10,000 if born from 18 February 2025; matching cap $9,000 (government total $19,000; about $28,000 including your savings).
• Fifth and subsequent child: First Step Grant $10,000 if born from 18 February 2025; matching cap $15,000 (government total $25,000; about $40,000 including your savings).

A third or later child born before 18 February 2025 may still receive the lower $5,000 First Step Grant. Amounts above the cap are not matched. Before the account is extended, LifeSG lets you save until 31 December of the year the child turns 12. Unused funds then move to the Post-Secondary Education Account, up to that cap.

What can the CDA be used for?

CDA funds can be used for the child or a sibling, only at Baby Bonus Approved Institutions, by GIRO or the Baby Bonus NETS card — never as cash.

• Registered childcare centres and kindergartens (fees, deposits, and approved preschool incidentals).
• Special education schools and early intervention programmes.
• Childminding fees under ECDA's Childminding Pilot.
• Medical care and prescribed medication at hospitals, polyclinics, and GP or paediatric clinics that are Approved Institutions — find a paediatric clinic that accepts CDA and confirm with the clinic before you go.
• Assistive technology devices recommended by a health professional.
• Premiums for MediShield Life or MediSave-approved integrated plans.

MSF discontinued CDA use at optical shops and retail pharmacies from 1 January 2026. Clinic and hospital pharmacies can still take CDA for prescribed medicine. Search the Approved Institution list before you pay.

Making the most of the CDA

• Start early so the First Step Grant can cover infant-care and clinic bills.
• If the matching cap is above $5,000, deposit before 30 September 2027. After that the cap becomes $5,000.
• Use the funds for approved out-of-pocket costs rather than leaving a large unused balance until the account closes.

Confirm the latest First Step Grant, matching cap, and approved uses before you deposit or spend. Related reading: Baby Bonus guide and Childcare Leave in Singapore. Official sources: LifeSG CDA, LifeSG Baby Bonus, Made for Families, and the CPF Board.