Short version: open your child's Child Development Account (CDA) with whichever of POSB, OCBC or UOB earns the most on the balance you actually plan to keep, because all three pay roughly the same and the free government money is identical no matter which bank you pick. For a typical first child in 2026 you can stack an $11,000 Baby Bonus cash gift, a $5,000 CDA First Step Grant, and up to $4,000 in dollar-for-dollar CDA co-matching. The bank is just the wallet. The schemes are where the real money is.
Three separate pots of money attach to a new Singapore Citizen baby, and people mix them up constantly. The Baby Bonus Cash Gift is plain cash paid to you. The CDA First Step Grant is a one-off government deposit into the CDA. CDA co-matching is the government matching your own CDA deposits dollar for dollar, up to a cap. The cash gift is yours to spend on anything; CDA money can only be spent at approved institutions like childcare centres, kindergartens and clinics.
Here are the verified figures for a child who is a Singapore Citizen with lawfully married parents, born on or after 14 February 2023 (the enhanced scheme), with the Large Families Scheme top-ups for a third or subsequent child born on or after 18 February 2025.
| Birth order | Cash Gift | CDA First Step Grant | CDA co-matching cap | Max government money |
|---|---|---|---|---|
| 1st child | $11,000 | $5,000 | $4,000 | $20,000 |
| 2nd child | $11,000 | $5,000 | $7,000 | $23,000 |
| 3rd child | $13,000 | $10,000 | $9,000 | $32,000 |
| 4th child | $13,000 | $10,000 | $9,000 | $32,000 |
| 5th and beyond | $13,000 | $10,000 | $15,000 | $38,000 |
The cash gift does not land in one lump. For a 1st or 2nd child the $11,000 arrives as $3,000 at birth, $1,500 at six months, $1,500 at twelve months and $1,000 at eighteen months, then $400 every six months from age 2 until the child turns 6.5. A 3rd or subsequent child gets bigger early instalments ($4,000 at birth, then $2,000, $2,000 and $1,000) that total $13,000 over the same window. The front-loaded chunk lands in the first year and a half; the long tail is small.
The money is paid into the Child Savings Account (CSA), not the CDA. The CSA opens automatically alongside the CDA when you join the scheme, and the bank links PayNow to the child's birth certificate number so the government can credit the payouts. You join through the Made For Families or LifeSG portal and confirm the receiving account there. There is no income test, and the cash gift belongs to the parent, so nothing forces you to leave it sitting in the CSA earning the bank's base rate.
Because this money trickles in over years, parking it somewhere that earns a normal rate matters more than the tiny rates on kids' accounts. A regular high-interest savings account or even a short Treasury bill will beat the 0.05% you get on most children's savings accounts. Keep an emergency buffer liquid first; the rest can chase yield.
| Child's age | 1st or 2nd child | 3rd or subsequent child |
|---|---|---|
| At birth | $3,000 | $4,000 |
| 6 months | $1,500 | $2,000 |
| 12 months | $1,500 | $2,000 |
| 18 months | $1,000 | $1,000 |
| Age 2 to 6.5 (each 6 months) | $400 | $400 |
| Total cash gift | $11,000 | $13,000 |
The CDA is a special account you open at POSB, OCBC or UOB. The First Step Grant is deposited automatically within about two weeks of opening, so open it early rather than waiting. After that, every dollar you put in is matched by the government, dollar for dollar, until you hit the co-matching cap for that birth order.
For a first child that cap is $4,000, so depositing $4,000 of your own money turns into $8,000 in the account, plus the $5,000 First Step Grant on top. That is the cleanest 100% return you will find anywhere in Singapore. If cash flow allows, fund the cap.
You can save into and use the CDA until 31 December of the year your child turns 12. After that the account closes and any unused balance moves to the child's Post-Secondary Education Account (PSEA), where it keeps earning interest for schooling later. CDA money cannot be withdrawn as cash; it pays approved institutions directly.
All three banks pay the same First Step Grant and the same government matching, because that money comes from the government, not the bank. The only difference is the interest the bank pays on your CDA balance, plus minor perks. The rates are tiered, and the tiers are where they differ.
These are the published rates as of mid-2026; check each bank's own CDA page for the live figure before you open, because these promotional rates change. Read them against how much you actually expect to hold. If you only fund the matching cap (say $4,000 plus the $5,000 grant) the gap between the three is small because they all pay 1% on the first tier. The differences widen once your balance climbs past $10,000.
POSB has the edge for a balance held between $10,000 and $50,000 because its 2% tier runs across a wide $40,000 band starting at just $10,000, while OCBC and UOB only pay 2% once you cross $25,000. Below $10,000, all three pay an identical 1%, so the bank choice barely moves the needle on a CDA you only fund to the matching cap.
| Bank CDA | First tier | Second tier | Above |
|---|---|---|---|
| POSB Smiley CDA | 1.0% on first $10,000 | 2.0% on next $40,000 | 0.05% above $50,000 |
| OCBC CDA | 1.0% on first $25,000 | 2.0% above $25,000 | n/a |
| UOB CDA | 1.0% on first $25,000 | 2.0% on next $25,000 | 0.05% above $50,000 |
Separate from the CDA, each bank sells a general children's savings account meant to teach saving habits. These are not where your money grows. Base rates sit around 0.05% a year, which loses to inflation every single year.
POSB My Account (Kids) has no minimum deposit and pays about 0.05%. UOB Junior Savers needs a $500 initial deposit, pays 0.05%, and bundles free insurance coverage that scales with your balance. OCBC Mighty Savers is the only one with a usable hook: a small bonus rate if you deposit at least $50 a month and make no withdrawals, plus an extra bonus if you also hold an OCBC CDA, which can push the headline rate up.
Treat these accounts as a teaching tool or a piggy bank, not an investment. If you are saving real sums for the child's future, the better homes are the CDA (for the matching), then ordinary higher-yield options once the CDA is funded.
| Account | Base rate | Min. initial deposit | Notable feature |
|---|---|---|---|
| POSB My Account (Kids) | ~0.05% p.a. | None | No fall-below fee, simple to open |
| OCBC Mighty Savers | 0.05% + bonus | None | Bonus for $50/month with no withdrawals; extra bonus with OCBC CDA |
| UOB Junior Savers | ~0.05% p.a. | $500 | Free insurance coverage that scales with balance |
The CDA has to sit at POSB, OCBC or UOB, but the ordinary savings account for the child does not. A few banks outside the big three pay a base rate worth tens of times what the big-bank junior accounts give, with no salary-crediting or spending hoops to jump through. If you want the cash gift instalments or the child's own savings to earn something while staying liquid, these are worth a look.
CIMB's Junior Saver is the clearest example. As published on CIMB's own page in mid-2026 it pays 1.28% a year on the first $25,000 and 1.58% on the next $25,000, with a $1,000 minimum and no fall-below fee. That is a flat, unconditional rate, unlike the bonus-rate gymnastics on the big-bank accounts. Standard Chartered and Maybank run their own junior accounts that have at times beaten the big three too, so check their live rates before you settle.
The catch with any of these is that the rate is promotional and the smaller banks change it more often, so treat the figure as a starting point and verify it on the bank's page the week you open. For money you will not touch for years, an even better home is a fixed deposit or a Treasury bill, which routinely clear what any kids' account pays.
| Account | Published rate | Min. initial deposit | Note |
|---|---|---|---|
| CIMB Junior Saver | 1.28% first $25k, 1.58% next $25k | $1,000 | Flat rate, no fall-below fee, no conditions |
| Standard Chartered e$saver Kids | Check live rate | None | Promotional rate has at times beaten the big three |
| Maybank Youngstarz | Check live rate | $1,000 | Bundles child insurance perks; rate varies |
The whole thing runs through one portal. You do not visit a branch, and you do not pick the bank before you start.
Sign in to LifeSG (or Made For Families), join the Baby Bonus Scheme, and the system walks you through registering the birth link and choosing your CDA bank from POSB or DBS, OCBC, or UOB. Once you confirm, the chosen bank emails you to finish opening the CDA on its app or site, and the matching Child Savings Account opens at the same time. The First Step Grant lands in the CDA within about two weeks, and the cash gift instalments start flowing into the CSA on the schedule above.
Sequence matters more than the bank logo. Get the guaranteed government money first, then worry about yield. Here is the order that captures the most for the least effort.
Because CDA funds can only go to approved institutions and never come back out as cash, plan what you will spend it on. The most common use is childcare and kindergarten fees, which for most families burn through the CDA long before the child turns 12. Healthcare items billed through approved providers, vaccinations, eye care and assistive devices also qualify.
If you have CDA money left as the child approaches 12, prioritise spending it on eligible costs you would have paid anyway, because the leftover that rolls into the PSEA can only be used for schooling later and is harder to redeploy. Co-matching also expires at the cap, so there is no benefit to over-depositing beyond the cap; extra money just earns the bank's modest interest.
Keep the receipts and use the LifeSG app to track balances across all three pots. The Large Families Scheme adds more on top for a 3rd or subsequent child born on or after 18 February 2025: a $5,000 Large Family MediSave Grant paid into the mother's CPF MediSave account, and $1,000 a year in Large Family LifeSG Credits from the year the child turns 1 to the year they turn 6 (up to $6,000 in total), credited to the LifeSG app. Both are separate from the CDA. If you want to squeeze every dollar of matching and timing right, see our guide to maximising the CDA.
There is no single winner, because the government grant and matching are identical at all three. Pick by interest rate on the balance you will hold. As published in mid-2026, all three pay 1% on the first tier. POSB pays 2% on the next $40,000 from $10,000 up to $50,000, the widest 2% band, so it leads for a balance held in that range. OCBC pays 2% above $25,000 with no upper cap, and UOB pays 2% on the next $25,000 then drops to 0.05% above $50,000. If you only fund the matching cap, all three are effectively the same. Confirm the current rate on each bank's CDA page, as these promotional rates change.
An $11,000 cash gift paid in instalments until the child turns 6.5, a $5,000 CDA First Step Grant, and up to $4,000 in dollar-for-dollar CDA co-matching if you deposit $4,000 yourself. That is up to $20,000 in government support for a first child, with the matching being the part you have to fund to receive.
No. The First Step Grant ($5,000 for a 1st or 2nd child, $10,000 for a 3rd or subsequent born on or after 18 February 2025) is deposited automatically within about two weeks of opening the CDA, with no deposit required from you. Co-matching is the separate part that requires your own deposits.
Only payments to approved institutions: childcare centres, kindergartens, MediSave-approved healthcare providers, optical shops for the child's eye care, pharmacies for approved items, and assistive technology. It cannot be withdrawn as cash. Most families spend it on preschool fees.
The CDA closes on 31 December of the year the child turns 12, and any unused balance transfers automatically to the child's Post-Secondary Education Account (PSEA), where it can be used for schooling later. Anything above the PSEA cap is refunded to you.
For long-term savings, no. Accounts like POSB My Account, OCBC Mighty Savers and UOB Junior Savers mostly pay around 0.05%, below inflation. Use them as a teaching tool. Fund the CDA first for the matching, then move surplus into higher-yield options like a high-interest savings account, a T-bill, or a long-horizon index fund.
No. The Baby Bonus Cash Gift has no income test. The child needs to be a Singapore Citizen with the eligibility conditions met (such as lawfully married parents for the standard scheme). The CDA grant and co-matching also have no income test.
In instalments, not one lump. For a 1st or 2nd child it is $3,000 at birth, $1,500 at six months, $1,500 at twelve months and $1,000 at eighteen months, then $400 every six months from age 2 until the child turns 6.5. A 3rd or subsequent child gets $4,000, $2,000, $2,000 and $1,000 over the first eighteen months, then the same $400 every six months. The early instalments are the bulk of it.
The CDA holds the First Step Grant and the government co-matching, and its money can only pay approved institutions, never come out as cash. The CSA opens automatically alongside the CDA and is an ordinary savings account that receives the Baby Bonus cash gift instalments and any education bursaries. Cash gift money in the CSA is yours to spend or move anywhere, including into a higher-yield account, since it is paid to the parent.
Sign in to LifeSG or Made For Families, join the Baby Bonus Scheme, and choose your CDA bank (POSB or DBS, OCBC, or UOB) inside the flow. The chosen bank then emails you to finish opening the CDA on its app, and the CSA opens at the same time. The First Step Grant lands in about two weeks. You do not need to visit a branch.
There is no minimum age; the big banks let you open a junior savings account from birth, and the CSA opens automatically with the CDA. As a teaching tool, the account becomes useful once the child is around 7 and can grasp saving. For the money itself, what matters is the rate and the matching, not the child's age, so fund the CDA early to start the co-matching clock.
This is general financial information for Singapore, not personal financial advice. Figures change — verify current rates against the official sources above before acting. See our full disclaimer.