What Is the CDA (Child Development Account) and How Do I Use It?
Everything about Singapore's Child Development Account: how to deposit, where to spend, the CDA Extra option, and when funds transfer to PSEA.
What the CDA Is
The Child Development Account (CDA) is a government-matched savings account specifically for Singapore Citizen children. It is opened as part of the Baby Bonus application and held at one of three partner banks: DBS, OCBC, or UOB.
The core mechanic is straightforward: for every dollar you deposit into the CDA (up to the cap for your child's birth order), the government matches it with one dollar. The government matching funds, called the First Step Grant and matching contribution, are deposited into the CDA as you deposit your own money.
| Birth Order | Government Match Cap | To Get the Full Match, You Deposit |
|---|---|---|
| 1st and 2nd child | S$6,000 | S$6,000 (your own money) |
| 3rd child | S$9,000 | S$9,000 (your own money) |
| 4th child and beyond | S$15,000 | S$15,000 (your own money) |
You have until your child turns 12 to deposit and receive the matching contribution. There is no annual deadline; you can deposit gradually over the years.
How to Deposit Money into the CDA
Deposits can be made at any time. The bank issues a CDA debit card linked to the account for spending at approved merchants. To add funds:
- Online bank transfer to the CDA account number
- Via the bank's mobile app (DBS PayLah, OCBC Digital, UOB TMRW)
- At a bank branch or ATM
- Using GIRO for recurring monthly deposits
Tip: Consider setting up a GIRO to deposit a fixed amount monthly. Spreading deposits over several years is just as effective as depositing a lump sum, and it is easier on the household budget. The government match is credited in real time as you deposit.
Approved Uses for CDA Funds
CDA funds can be spent using the CDA debit card at approved institutions. The account is specifically for child-related expenses, and the scope is broad.
| Category | Examples | For Siblings? |
|---|---|---|
| Childcare and Infant Care | ECDA-licensed centres (PCF, NTUC, private) | Yes (siblings under 18) |
| Kindergarten | MOE KG, PCF K1/K2, private kindergartens | Yes |
| Special Education | SPED schools and early intervention | Yes |
| Medical at Hospitals | KKH, NUH, SGH, Raffles Hospital, and other approved hospitals | Yes |
| CHAS GP and Clinics | CHAS-accredited general practitioners | Yes |
| Optical and Dental | Approved opticians, dental clinics | Yes (siblings under 18) |
The "approved institution" list is maintained by MSF. You can check whether a clinic or centre is on the list via the Baby Bonus online portal or by asking the institution directly.
CDA Extra: The Investment Option
OCBC offers a "CDA Extra" option that allows you to invest a portion of your CDA balance in unit trusts. This can potentially grow the funds before your child needs them for school fees or medical expenses in later years.
- Available only through OCBC CDA
- A minimum balance must remain in the base CDA account at all times
- Investment returns are not guaranteed (unit trust risk applies)
- Redemption is straightforward when you need the funds for approved uses
- Best suited for families who have maximised the government match and have surplus CDA funds
When the CDA transfers to PSEA: When your child turns 13, the remaining CDA balance is transferred to a Post-Secondary Education Account (PSEA). The PSEA can be used to fund university fees and approved courses at age 18 and above. Funds in the PSEA join the child's CPF account at age 30 if unused.
Medical disclaimer: this content is for general informational purposes only. CDA rules and approved institutions are set by MSF and subject to change. Verify at go.gov.sg/babybonus.