SINGAPORE – Parents whose babies are born from March 24 onwards will get a grant of $3,000, Finance Minister Heng Swee Keat announced in his Budget statement today.
This new First Step Grant will go into children’s Child Development Accounts (CDA).
Under the Baby Bonus Scheme, the Government currently matches parents’ savings in the CDA dollar for dollar, up to a ceiling of $6,000 for the first and second child. For example, if parents save $3,000 for a child, the Government will match that with another $3,000, bringing the total in the account to $6,000.
With this new grant, parents will not have to contribute anything first. However, the amount will still count towards the existing caps, meaning that if parents save $3,000 after receiving $3,000 from the Government, they will hit the co-sharing ceiling of $6,000.
But they will get $9,000 in total, which is more than the $6,000 they would have had before the grant.
First Step Grant will be deposited from July 1.
Parents of babies born between Thursday and June 30 should wait until July 1 before saving into the CDA, said an announcement on the Ministry of Family and Social Development’s BabyBonus website.
Those who choose to save into the CDA before July 1 will not be eligible for the grant.
Minister Heng also announced that the Medisave withdrawal limit for pre-delivery medical expenses will be doubled from $450 to $900, effective immediately.