The baby bonus comes in 2 parts, the first part is a $6,000 cash gift the government gives out in 3 installments over 12 months. 50% at birth, 25% when the child is 6 months old, and 25% when the child is 12 months old. You need to nominate one of the parents as a trustee to receive the cash gift.
The second part is the government matching your savings in a Child Development Account (CDA) account, up to $6,000 until the child is 12 years old. And the same parent will be the trustee of the account.
To apply, the easiest is to submit all the forms at the one-stop service counters available at the birth registration counters at these hospitals – Gleneagles Hospital, KK Women’s and Children’s Hospital, Mount Alvernia Hospital, Mount Elizabeth Hospital, National University Hospital, Parkway East Hospital, Raffles Hospital, Singapore General Hospital and Thomson Medical Centre – and the Immigration & Checkpoints Authority (ICA).
Don’t follow the misleading instructions on OCBC web page to apply at the bank. That’s what I did, and I wasted time at the bank.
The funds in the CDA account can only be used for medical and school fees at approved institutions. If there are still unused funds by the time the child turns 12, it converts to a Post Secondary School Education Account (PSEA) for the child, which can be used to pay for school fees. By the time the child turns 30, if there are still funds left in the account (unlikely), it will be converted to his CPF.