SG Parent Guide

Child Development Account (CDA) Guide

Updated 25 Oct 2026 · 2 min read · SG Parent Guide Editorial Team
A hand adding a coin to a savings jar beside a soft toy on a wooden table
Short answer

The CDA is a co-savings account for your child. The government pays in an automatic First Step Grant and then matches every dollar you save, up to a cap. The money is spent at approved providers like preschools, clinics and hospitals.

On this page (4 sections)

The Child Development Account (CDA) is the savings half of the Baby Bonus Scheme. It is a special account in your child’s name that the government tops up in two ways. Figures below are for Singapore Citizen children born on or after 18 February 2025 (MSF).

The two kinds of government money

1. First Step Grant — credited automatically once you open the CDA, with no need to save first.

Total government CDA contribution by birth order

First Step Grant plus maximum co-matching, if you save enough to max it. Source: MSF.

2. Dollar-for-dollar co-matching — for every dollar you deposit, the government adds a dollar, up to a cap set by birth order.

Birth order First Step Grant Max co-matching Total government Account total if you max it
1st child S$5,000 S$4,000 S$9,000 S$13,000
2nd child S$5,000 S$7,000 S$12,000 S$19,000
3rd & 4th child S$10,000 S$9,000 S$19,000 S$28,000
5th and subsequent S$10,000 S$15,000 S$25,000 S$40,000

The last column is what sits in the CDA if you save enough of your own money to unlock the full co-matching. For a first child, that means depositing S$4,000 to pull in the S$4,000 match.

Which bank?

A CDA can be opened with POSB/DBS, OCBC or UOB after your child is enrolled in the Baby Bonus Scheme. All three receive the same government grants and co-matching; they differ mainly in interest rates and account perks, so compare before choosing.

Opening a CDA: Banks POSB/DBS, OCBC, UOB; First Step Grant Automatic, no saving first; Matching Dollar for dollar, to cap; Save until Year child turns 12

All three banks receive the same government grants and matching.

What CDA money can be used for

CDA funds (and the co-matching) can be spent at Baby Bonus Approved Institutions, including:

  • ECDA-licensed childcare and infant care centres
  • Kindergartens registered with ECDA, and MOE and special-education schools
  • MOH-licensed clinics, hospitals and other healthcare institutions
  • Registered early-intervention programmes and approved assistive-technology providers

Importantly, the money can be used for any of your children, even a sibling without their own CDA.

Tips

  • Save early. The balance earns interest, and you want to deposit enough to capture the full co-matching before it expires (CDA co-matching runs until the end of the year the child turns 12).
  • Spread deposits if cash is tight — you do not have to deposit the full matching amount at once.
  • Keep the CDA for its purpose. It is for approved child expenses, which is exactly what preschool bills are.

General information, not financial advice. Confirm current caps and deadlines with MSF and your bank.

Sources

  1. Baby Bonus Scheme (CDA benefits for parents) — Ministry of Social and Family Development (as of October 2026)
  2. Baby Bonus Scheme — Made For Families (Government of Singapore) (as of October 2026)
  3. Child Development Account — UOB (participating CDA bank) (as of October 2026)