Learn How: Gift Your New-born with a CDA Account Now

BusinessLearn How: Gift Your New-born with a CDA Account Now


The arrival of a newborn in a family is exciting, for it spreads a lot of love. A new baby represents hope and a new beginning after waiting for months for its arrival. It also brings lots of smiles and cheers to your family. A momentous occasion, a new baby’s arrival deserves a celebration. One way of celebrating it is by opening a CDA account. By starting a Smiley Child Development Account, you can welcome a new baby into your family. 

Know more about Smiley CDA

A special savings account, a Smiley CDA is opened at birth with some banks like DBS/POSB Bank in Singapore. With a CDA, parents can save money for their child as it will match every dollar they deposit in the CDA with a dollar up to the co-matching cap given.

What are the benefits of opening a Smiley CDA?

You can enjoy several benefits by opening a POSB Smiley CDA account. They are:

  •  Get CDA First Step Grant

You can avail of the First Step grant of up to 3000 SGD on starting a DBS/POSB Smiley CDA. Babies born on or after March 24, 2016, are eligible for the First Step grant. Parents can continue saving in the CDA account, for which the government will make a dollar-for-dollar matching contribution up to the maximum co-matching cap. The grant generally is credited to your CDA within two weeks.

  •    Singapore government’s dollar-for-dollar contribution 

Parents can accumulate savings in the CDA account, wherein the government will make a dollar-for-dollar contribution up to the co-matching caps given:

  • First child: You can receive a government contribution of up to 3,000 SGD per child, with a total CDA benefit of 6,000 SGD, including the CDA First Step Grant 
  • Second child: You get a maximum dollar-for-dollar matching contribution of 6,000 SGD per child, wherein the total CDA benefit will be 9,000 SGD, including the CDA First Step Grant. However, only children born or expected to deliver on or after January 1, 2021 or at an estimated date are eligible.
  • Third and Fourth child: You can get up to 9,000 SGD per child. The total CDA benefit will be up to 12,000 SGD, including the CDA First Step Grant 
  • Fifth child onwards: Here the co-capping cap is up to 15,000 SGD per child, and the total CDA benefit will be 18,000 SGD, which includes the CDA First Step Grant.

Competitive interest

Your CDA account with SGD 50,000 and below will get you interest of 2 percent per annum.

  • Enjoy exclusive merchant deals

With a DBS/POSB CDA account, you get a POSB Baby Bonus NETS Card. You can enjoy exciting and attractive deals and perks at various merchants for the family. For instance, you can join your child in pre-school with no registration fee and enjoy great discounts on baby health products and children’s books and toys.

Step-by-Step guide for applying for a CDA

You have to check your eligibility for CDA by logging on to the Baby Bonus website of the Ministry of Social and Family Development (MSF). If you are eligible, you can apply for it two months before the child’s birth. To apply: 

Step 1: Log on to the Baby Bonus website using your Singpass

Step 2: You are required to fill in your details in an online form and click “Submit”. You can do this 2 month before the birth or when you are in the hospital for the birth. It will take just 5-10 minutes.

Step 3: Once your CDA application is processed and approved, you will receive a notification from the bank giving the details of your new account with a balance of 3000 SGD. A NETS card in your child’s name is also sent to your residential address.

When you register for the Baby Bonus Scheme, you will be asked to nominate a person who can be either of you or a third person to:

  • Receive the CDA First Step grant and the government’s dollar-for-dollar contribution 
  • Be a trustee and manage the CDA 

Apart from the nominated person, any other person who is solvent and over 18 years of age can be a CDA trustee. If you are about to welcome a newborn, it’s time you open a CDA account keeping in mind the points explained.

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