August 1, 2024
SINGAPORE – As of July 1, newborns have a new savings account opened for them under the Baby Bonus scheme to receive government cash payments such as bursaries and cash gifts.
The Child Savings Account, which is a regular savings account held jointly by the Child Development Account (CDA) trustee and the child, will make it easier for parents to receive cash payments and manage their child’s finances.
There will be no restrictions on the usage of the monies, said the Ministry of Social and Family Development (MSF) in a statement on July 31.
The savings account is in addition to the existing CDA, which is used for a child’s education and healthcare expenses.
For children who were enrolled on the Baby Bonus scheme before July 1, the child’s trustee can go to a CDA bank to apply for the Child Savings Account.
As of July 1, all eligible parents can also apply for the Baby Bonus scheme through the LifeSG mobile app or website.
Previously, parents would apply through the Baby Bonus website if they did not apply for the scheme during the birth registration of their child. Baby Bonus applications and account services are no longer available on the Baby Bonus website.
MSF said the transition of Baby Bonus scheme applications to LifeSG provides a one-stop portal for parents, where they can apply for the scheme and access other services and information for newborns and young children, like searching for pre-schools.
Parents can also complete account-related services at the CDA banks more quickly. The CDA banks are DBS/POSB, UOB and OCBC.
For example, a request for a change of CDA bank will now take only six working days to complete, a much shorter turnaround time from around 21 days previously, the ministry said.
MSF said: “These enhancements underscore the Government’s commitment to support Singaporean families in improving the convenience and accessibility of child-related services, allowing parents to spend more quality time with their child.”
Minister of State for Social and Family Development Sun Xueling said in a statement: “Through the improved Baby Bonus services, we hope to support and help parents to focus on what matters most – bonding with their newborns.”
The new Child Savings Account also gives parents a head start on saving for their child’s future, providing valuable peace of mind during this precious time, she added.