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 Parents whose babies are born from 24 March 2016 onwards will get a grant of $3,000, Finance Minister Heng Swee Keat announced in his Budget 2016 statement. 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.

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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 1 July 2016.

Parents of babies born between Thursday and 30 June 2016 should WAIT until 1 July 2016 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 1 July 2016 will not be eligible for the grant.

She added that with the new grant in place, an estimated 74 per cent of CDA holders will be able to fully maximise their CDA Government contribution caps of between $6,000 and $18,000, depending on the child’s birth order – up from 60 per cent who currently maximise the caps.

For more information on Baby Bonus, please visit

 

Facebooktwitterhttps://www.babyclub.com.sg/wp-content/uploads/save-money.jpghttps://www.babyclub.com.sg/wp-content/uploads/save-money-150x150.jpgBabyClubFeaturedParenting Parents whose babies are born from 24 March 2016 onwards will get a grant of $3,000, Finance Minister Heng Swee Keat announced in his Budget 2016 statement. 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...Pregnancy . Baby . Parenting