Are you getting the most out of your RESP?

A Registered Education Savings Plan (RESP) is a savings vehicle specifically designed to help pay for your child’s post-secondary education. In a manner of speaking, it’s a present-day gift that promises them financial assistance in the future. But, are you getting the most out of your RESP?


Government Grants


You may not be aware of various government grants designed to help boost the amount of money you can save with your RESP.


These grants can be federal or provincial. The two most common grants are the Canada Education Savings Grant and the Canada Learning Bond. These grants are federal, and the government will match a certain percentage of your total contributions to a certain limit. Have a look at the table below to see what types of grants you may qualify for.


Grant Type

Grant Name

Amount Matched by Government

Amount to Contribute to Maximize Grant Bonus

Maximum Grant per Year

Lifetime Maximum of Grant Bonus

Federal

Canada Education Savings Grant (CESG)

20%

$2,500/year

$500/year

$7,200

Federal

Additional Canada Education Savings Grant (ACESG)

Grant is applied as 30%-40% on the first $500 contributed each year for average to lower-income families (click here for additional information on eligibility) instead of 20%. All contributions above $500 are matched at 20% as with the CESG.

Combined CESG and ACESG maximum of $7,200

Federal

Canada Learning Bond (CLB)

None. The grant is applied as an annual lump sum payment. (As long as you continue to qualify.)

None. Eligibility is subject to the approval by the government.

$500 in first year

$100 for each following year until beneficiary turns 15

$2,000


Grant Type

Grant Name

Amount Matched by Government

Amount to contribute to maximize grant bonus

Maximum grant per year

Lifetime maximum of grant bonus

Provincial*

Quebec Education Savings Incentive (QESI)

10%

$2,500

$250

$3,600

Provincial*

Additional Quebec Education Savings Incentive (AQESI)

The amount of Additional QESI is up to 10% annually on the first $500 of Contributions to a Registered Education Savings Plan.

Combined QESI and AQESI

Provincial*

Saskatchewan Advantage Grant for Education Savings (SAGES)

10%

$2,500

$250

$4,500

Provincial*

British Columbia Training and Education Savings Grant (BCTESG)

None. The grant is applied as a one-time lump sum.

None.

None.

$1,200

*These grants are specifically eligible to residents in the provinces noted above. Proof of residence is required to determine eligibility. You must also have a valid Social Insurance Number in order to register the Plan.


The requirements for eligibility for these grants can be found in our Resource Centre, under Forms. They can also be found in our most recent prospectus.


For any other questions or concerns, please fill out the form below and one of our representatives will contact you: