Child Development Accounts to be extended by 6 years from Jan 1
Parents can continue to dip into a special savings account under the Baby Bonus scheme until their children are 12 years old, instead of six.
Their Child Development Accounts (CDAs) will be extended by six years from 1 January 2013.
The savings account is co-funded by the government for items for children, such as spectacles and prescription medicine, as well as childcare fees.
The amount of money the parents deposit is matched dollar-for-dollar by the Government up to a cap - ranging from $6,000 to $18,000, depending on the birth order of the child.
This means that children born on or after 1 January 2006 will continue to have their CDAs open until 31 December of the year they turn 12, instead of 31 December of the year they turn six.
It also means that parents will have six more years to save if they've not yet saved up to the cap, as well as use the CDA funds for the child and his or her siblings.
The CDA was announced during the 2012 Committee of Supply Debate by Deputy Prime Minister and Minister-in-Charge of the National Population and Talent Division, Mr Teo Chee Hean.
It aims to better support the developmental needs of children.