RESP Grants & Bonds
The Canada Education Savings Grant (CESG) program was initiated by the federal government to assist families saving for their children’s post-secondary education.
The federal government tops up your annual contribution by 20%, up to a maximum of $500 ($2,500 contributions x 20%) per beneficiary per calendar year, to a lifetime maximum of $7,200.
Lower to middle income families may receive additional CESG payments on their RESP contributions if their net family income is:
- Below $42,707*: Child receives grant in the amount of 40 cents for every dollar on the first $500 saved in your child’s RESP each year
- If your net family income is between $42,707* and $85,414*: Child receives grant in the mount of 30 cents for every dollar on the first $500 saved in your child’s RESP each year
Additional facts about grant eligibilities
- Contributions for an eligible beneficiary must have been made by December 31st of the year in which the beneficiary turns 17
- Beneficiary must be a resident of Canada at the time of the contribution and have a valid Social Insurance Number (S.I.N.)
- Unused CESG-eligible contribution room may be carried forward into subsequent years
For beneficiaries who are 16 or 17 years old in the calendar year, the CESG will only be received where:
- A minimum of $2,000 has been contributed to an RESP for the beneficiary (and not withdrawn) by the end of the calendar year in which the beneficiary turns 15; or
- At least $100 has been contributed to an RESP for the beneficiary (and not withdrawn) in any four years up to and including the calendar year in which the beneficiary turns 15.
Additional RESP incentives available for qualified families
1) The Canada Learning Bond (CLB)
- The CLB was introduced in 2005, intended to benefit low income families.
- For qualifying families, the CLB grants $500 for the first eligible year and $100 for every additional eligible year until the child turns 15 years of age. Total incentives can add up to $2,000 to an RESP of each eligible beneficiary.
2) Alberta Centennial Education Savings (ACES)
- The ACES was introduced in 2005, this plan grants families of newborns in the province of Alberta $500 and an additional $100 for all eligible 8, 11 and 14 year olds.
3) Quebec Education Savings Incentive (QESI)
- The QESI was created by Revenue Quebec to encourage families in Quebec to save for their children’s post-secondary education.
- Basic QESI equals 10% of net annual RESP contributions up to an annual maximum of $250 per child
- Increased QESI of up to $50 per year for low income families added to basic amount above.
- Unused QESI room can be carried forward
- $3,600 lifetime QESI limit per child
- Eligible children whose parents or guardian is a resident of Quebec December 31 of the taxation year
Calculate education costs and savings needs with our RESP Savings Tool.
