Canada Education Savings Grant
What is the Canada Education Savings Grant?
To help you save for a child’s post-secondary education, the Government of Canada will make contributions
to your Registered Education Savings Plan (RESP) in the form of the Canada Education Savings Grant (CESG).
Eligibility
Children up to and including the age of 17 are eligible to receive the CESG based on the following conditions:
- The child is a Canadian resident
- The child has a valid Social Insurance Number (SIN)
- The child is named as a beneficiary of an RESP
- Money has been put into the RESP.
For children 15 years of age and older, prior RESP contributions must have been made before December 31 of the year in which the child turns 15.
The Amount
CESGs are based on family income. In fact, the amount can change as your family’s income changes. The grant provides a minimum of 20 cents for every dollar on the first $2,000 of annual RESP savings. However, your child may receive an additional grant on RESP savings if your net family income is:
- Below $36,378*. In this case, the grant will be 40 cents for every dollar on the first $500 you save in your child’s RESP each year.
- Between $36,378* and $72,756*. If this is the case, the grant will be 30 cents for every dollar on the first $500 you save in your child’s RESP each year.
- Above $72,756*. If this is the case, the grant will remain 20 cents for every dollar on the entire $2000 you save in your child's RESP each year
* This amount is updated each year based on the rate of inflation.
Steps to Getting the CESG:
- Apply for a birth certificate and then a Social Insurance Number (SIN) for your child
- Apply for the Canada Child Tax Benefit
- Choose the RESP provider that best meets your needs. Explore financial institutions,
group plan dealers and financial services providers to make your choice - Open an RESP for a child and put money in it
- Ask your RESP provider to apply for the CESG on behalf of the child
- The grant will be deposited directly into your child’s RESP.
Lifetime Limits
The most CESG money the child can receive is $7,200. This lifetime limit also applies to each
individual child when the CESG money is shared with other beneficiaries as in a family RESP.
Please note that, in this case, “lifetime” means from birth up to and including age 17.
Using the CESG
When a child is enrolled in a qualifying educational program, he or she can start receiving money. At that time, the CESG, along with income earned by the money in the RESP, is paid to the beneficiary in the form of Educational Assistance Payments (EAPs). Each EAP includes a portion of the CESG.
If the beneficiary does not go on to a post-secondary education, the CESG must be returned to the Government of Canada, unless the RESP is a family plan. If the RESP is a family plan, the other children named in the plan may use the CESG.
Other Saving Opportunities
Depending on the family’s income, a child may also qualify for the Canada Learning Bond. Ask a RESP provider if you qualify.