A Child Development Account (CDA) is a special savings account for a Singapore Citizen child: the government puts in a First Step Grant, then matches every dollar you save, up to a cap. The money can pay for preschool fees, medical bills and other approved expenses, but cannot be withdrawn as cash.
The CDA is changing under the SG Child Support Package announced at the 2026 National Day Rally. It will stay open longer, and from 1 October 2027 every child’s co-matching cap becomes S$5,000. For a second or later child, that is lower than today’s cap, so timing your savings matters.
The short version: Open the CDA as soon as your child is enrolled, save enough to use the full co-matching, and if your child’s current cap is above $5,000, deposit up to it before 30 September 2027.
How a Child Development Account Works
According to LifeSG:
- Opening. After your child is enrolled in the Baby Bonus Scheme, you open the CDA online with your chosen bank: POSB/DBS, OCBC or UOB. The parent who registers the birth or applies becomes the CDA trustee.
- First Step Grant. Deposited automatically within two weeks of opening. No deposit needed first.
- Co-matching. For every dollar you deposit, the government adds a dollar, up to your child’s cap, credited within two weeks.
- Uses. Only at Approved Institutions: childcare centres and kindergartens, childminding operators, medical institutions, assistive technology providers, and special education schools and early intervention centres.
- No cash withdrawals. The funds are ring-fenced.
A Child Savings Account opens alongside the CDA. That is an ordinary joint account for the Baby Bonus Cash Gift, bursaries and other payouts.
Current Amounts for Children Born Before April 2027
For Singapore Citizen children born on or after 14 February 2023, LifeSG lists:
| Birth order | First Step Grant | Co-matching cap | Total CDA |
|---|---|---|---|
| First child | $5,000 | $4,000 | $9,000 |
| Second child | $5,000 | $7,000 | $12,000 |
| Third and fourth child | $10,000* | $9,000 | $19,000 |
| Fifth and later child | $10,000* | $15,000 | $25,000 |
*The $10,000 First Step Grant applies to third and later children born from 18 February 2025 under the Large Families Scheme. Source: LifeSG.
What Changes Under the SG Child Support Package
From LifeSG’s package page:
- Children born on or after 1 April 2027 get a $5,000 First Step Grant and co-matching up to $5,000, whatever their birth order.
- Children born from 1 January 2015 to 31 March 2027 keep the First Step Grant amounts of the Baby Bonus and Large Families schemes.
- All co-matching caps become $5,000 from 1 October 2027. You can keep saving up to your child’s existing cap until 30 September 2027.
- The CDA stays open longer. For children born on or after 1 January 2015, it remains open until the end of the year the child turns 16, instead of 12. Unused funds then move to the child’s Post-Secondary Education Account (PSEA), up to the PSEA cap.
MOE adds that for these children, any co-matching not completed before the CDA closes at 16 is not carried forward to the PSEA.
Worked Example: Why 30 September 2027 Matters
An illustrative family has a second child born in 2024, with a $7,000 co-matching cap. They have deposited $2,000 so far and received $2,000 in matching.
| Option | Further deposits | Further matching | Total matching received |
|---|---|---|---|
| Deposit $5,000 more by 30 September 2027 | $5,000 | $5,000 | $7,000 |
| Wait until after 1 October 2027 | $3,000 (to the new $5,000 cap) | $3,000 | $5,000 |
On these figures, saving before the deadline brings in $2,000 more in government matching. Illustration only; check your child’s actual cap and balance in Family View on the Parent Portal Services with Singpass.
For a first child with a $4,000 cap, the new $5,000 cap is higher, so there is no deadline to beat: the family can save up to $5,000 and receive matching on it.
Using the CDA Well
- Pay preschool and infant care fees from it. After subsidies, fees at licensed centres are usually the largest approved expense. See our guide to infant care and childcare subsidies.
- Pay clinic and hospital bills at approved medical institutions.
- Do not link the child’s PayNow to the CDA. LifeSG warns against this. Package payouts go to the bank account linked to the child’s PayNow ID, which must be an ordinary account in the child’s name or a joint account with a parent, such as the Child Savings Account. Our guide to kids savings accounts compares those accounts.
- Plan for what is left. Unused CDA money moves to the PSEA, which MOE says earns interest pegged to the CPF Ordinary Account rate, currently 2.5% a year, and can pay for approved post-secondary courses. Our guide to saving for your child’s university picks up from there.
What To Do Next
- Open the CDA as soon as the enrolment email arrives, so the First Step Grant lands early.
- Check your child’s co-matching cap in Family View and, if it is above $5,000, plan deposits before 30 September 2027.
- Set up the child’s PayNow-linked bank account before 1 April 2027 for package payouts.
- Read our news story on the SG Child Support Package for the full transition table, and our guide to the cost of having a baby for the first-year budget.
