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 | 20% | $2,500/year | $500/year | $7,200 | |
| Federal | 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* | 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* | 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:
Heritage Plans are scholarship plans issued under the sponsorship of the Heritage Educational Foundation. Units of the Heritage Plans are offered by prospectus only, a copy of which can be obtained from the registered dealer, Heritage Education Funds Inc. at HeritageRESP.com. These securities may not be appropriate for all investors and are subject to certain risk factors. See the prospectus for details.