Canada Education Savings Grant - CESG

The Canada Education Savings Grant (CESG) is money that the Government adds to a Registered Education Savings Plan (RESP) to help save for the post-secondary education of your child. The amount of government grant depends on how much you contribute to your child's RESP. Money in an RESP can be used to help pay for full-time or part-time studies. Anyone can open an RESP account for a child - parents, guardians, grandparents, other relatives or friends.

Is my child eligible?

The Canada Education Savings Grant is available until the end of the calendar year in which the child turns 17, as long as:

  1. your child is a Canadian resident
  2. your child has a valid Social Insurance Number
  3. an RESP account has been opened in your child's name
  4. you contribute some money into your child's RESP
  5. you ask your RESP provider to apply for the CESG

There are also special rules for contributions in the last two years, when your child is 16 or 17.

How much my child could receive?

For lower income families, the grant is up to 40% on the first $500, and 20% on the balance over that amount. For example, if the contribution to your child's RESP account is $100, the government will provide additional $40 on top of that. Anyone can open an RESP for a child; not only the child’s parent. If a contribution cannot be made in any given year, there is the ability to catch up in future years.

Will I lose any government benefits I receive?

The Canada Education Savings Grant doesn’t affect any government benefits received. The money is exempt as assets, exempt as income. The account will be in your child's name. Your child will be named as the beneficiary of the RESP plan, you will be named the subscriber. The money will gain interest until they are withdrawn. To access the funds when your child goes to postsecondary, all you need is to show the proof of enrolment and the funds are released to your child. It can be used for full time or part time studies in university, college, apprenticeship or trade. Your child has up to 36 years to use the money.

What is the difference between Canada Education Savings Grant and Canada Learning Bond?

CLB is free, you don't need to contribute any money to receive it. CESG is a government top up to your own contributions. Regardless whether the money comes from CLB, CESG or your own contributions, it grows inside an RESP account registered in your child's name.

More Information

Please visit following link to learn more about CESG program:

 CESG Overview