In addition to allowing you to accumulate savings and grow them tax-free, the RESP also gives you access to generous government grants paid directly into the plan.
Result
These grants grow right along with your contributions and considerably enhance your investment.
The Canada Education Savings Program (CESP) is a federal initiative that encourages parents to invest in their children’s post-secondary education through two different types of grants.
| Grant type | |||
|---|---|---|---|
| Canada Education Savings Grant (CESG) | Canada Learning Bond (CLB) | ||
| Annual grant(% of contributions) | 20% | Limit of $2,000 per child for eligible families | |
| Annual limit (per child) | $500 | ||
| Lifetime maximum (per child) | $7,200 | ||
| Additional grant(% of contributions) | Based on net family income, 10% or 20% of the first $500 invested each year | ||
Certain Canadian provinces encourage families to save even more by supplementing the federal grant program.
| Grant type | |
|---|---|
| Quebec Education Savings Incentive (QESI) | |
| Annual grant(% of contributions) | 10% |
| Annual limit (per child) | $250 |
| Lifetime maximum (per child) | $3,600 |
| Additional grant(% of contributions) | Based on net family income, 5% or 10% of the first $500 invested each year |
| Grant type | |
|---|---|
| Saskatchewan Advantage Grant for Education Savings (SAGES) | British Columbia Training and Education Savings Grant (BCTESG) |
| 10% | $1,200 one-time grant Application must be submitted between the child’s 6th and 9th birthdays |
| $250 | |
| $4,500 | |
| ---- | |
For some grants, unused grant room accumulates over time. This means that if no contributions are paid into an RESP in a given year, or if contributions are lower than the limit established by the government in question, grant room can be carried over to subsequent years for so long as the child is eligible.
To obtain the government grants, your child must have a social insurance number and be a Canadian resident. The grant application is made when the RESP is opened and the amounts are paid directly into the plan.
The Diploma RESP provides easy access to the grants available to you based on your income and province of residence.