The Government started the scheme in 1993 by setting up the Edusave Endowment Fund with an initial contribution of $1 billion. The capital sum reached the targeted $5 billion by 1997. This fund is invested and the interest earned is disbursed as grants and awards to schools and students to pay for enrichment programmes and fund additional resources.

After the National Day Rally announcement, any Singaporean child who is studying full-time in a government, government-aided or independent school, junior college, centralised institute, Institute of Technical Education or special education school, or enrolled in madrasahs, privately-funded schools, as well as children who are home-schooled or residing overseas, can benefit from Edusave.