The Baby Bonus scheme consists of 2 components: the Cash Gift and the Child Development Account or CDA. Both parents will have to agree on who will:

• receive the Cash Gift as a Bank Account Holder, and/or

• manage the Child Development Account as a CDA trustee.

The person can either be the parent of the child or a third party. The Cash Gift bank account holder and CDA trustee can be the same person or different persons. The CDA trustee must be above the age of 18 and must not be a bankrupt.

The Cash Gift will be credited to the Bank Account Holder’s selected bank account. The bank account can be a personal or a joint bank account with the child. The CDA is a separate special savings account for children to help build up the savings that can be spent on approved uses. It is not a regular savings account. When a CDA is opened, the child will receive CDA benefits, comprising the CDA First Step (for children born from 24 Mar 2016) and Government co-matching contributions.

The CDA First Step will be credited into the CDA within 2 weeks (excluding public holidays) from the opening of the account. Parents can save in the CDA and receive co-matching from the Government up to a maximum cap based on the child’s birth order. Parents' savings will be matched by the Government within 2 weeks (excluding public holidays).