Your Baby Bonus Funds Can Now Be Used for More!


    The baby bonus given by our Singapore government has benefited many families. Firstly, the cash gift for the 1st to 4th children have helped parents to pay for medical and educational expenses. On top of that, there is also the CDA funds, whereby the government matches dollar-for-dollar whatever savings is deposited into the account.

    Recently, the government has also extended the use of the CDA funds for more purposes. The funds are no longer only restricted to be used at MCYS-registered Approved Institutions and medical expenses at clinics and hospitals.

    With effect from 1 July 2012, the CDA funds can be used for purchases at pharmacies, optical shops and providers of assistive technology devices as long as they are MCYS-registered Approved Institutions. These places will usually display a round and red sticker which says that the CDA card can be used to pay for your child’s expenses.

    One way parents can benefit from this enhancement is that they can also purchase over-the-counter medication for their children at pharmacies with their CDA funds. For example, the purchase of paracetamol liquid for the treatment of mild fever. Some clinics may also prescribe medication which are unavailable at their pharmacies. Thus with a prescription from your child’s doctor, you can bring it to a MCYS-registered Approved Institution pharmacy and pay for it using your CDA funds.

    For more information on the baby bonus, please visit the Baby Bonus website.


      • In another perspective, parents should also use the funds wisely. Treat CDA as a savings account for the child, and the money be used in emergency situations or when the need rises. For example, if parents can well afford a $200+ vaccination, maybe we should consider paying them without touching the CDA funds.

        No doubt government has amended the rules to allow more flexibility in the usage, each time we use it, we should consider first as the funds belong to the child. Hence, the funds should be utilised to the maximum benefits to outweigh the small savings each round of usage.

        Ultimately, there is no right or wrong as it is a matter of perspective of the individuals.

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