CESG and other grants
Government grants can help you save
Government grants are available to help you build your RESP savings.
Canada Education Savings Grant (CESG)1,2,3
CESG is a federal government grant that is deposited directly into your RESP, and can increase your savings by 20% or more.
1. Basic CESG
Equal to 20% of the first $2,500 in annual RESP contributions
per beneficiary (up to $500 per beneficiary
each year to a lifetime limit of $7,200).
2. Additional CESG
Based on net family income, it allows you to reach the $7,200 lifetime CESG limit earlier or without having to contribute as much.
| Summary of basic and additional CESG |
| Family net income* |
CESG rate on first $500 (or less) in contributions per year |
CESG rate on contributions between $500 and $2,500 per year |
| Less than $38,833 |
20% basic + 20% additional |
20% basic |
| $38,833 - $77,664 |
20% basic + 10% additional |
20% basic |
| More than $77,664 |
20% basic |
20% basic |
Two ways to maximize your CESG
- If you don't contribute enough to qualify for the full $500 basic
CESG in any given year, the unused portion of the CESG can be carried
forward and received in future years.
- Ask us about CESG eligibility for the years you didn't have an RESP.
You may have eligible grant room of $500 for each year since your child
was born.
|
Provincial Grants2,3
The Alberta Centennial Education Savings Grant can add up to $800 to an RESP for every child born to or adopted by Alberta residents, subject to qualifications. Other provinces may offer additional grants and/or tax incentives. Please ask us for more information.
Canada Learning Bond (CLB)2
Available to children born on or after January 1, 2004, whose families are eligible to receive the National Child Benefit Supplement. The CLB can add up to $2,000 to your RESP per child.
| Quick facts about RESPs and government grants |
| Maximum lifetime contribution |
$50,000 per beneficiary |
| Maximum annual basic CESG |
$500 per beneficiary per year |
| Maximum annual additional CESG |
$50 or $100 per beneficiary per year |
| Maximum lifetime CESG |
$7,200 per beneficiary |
| Maximum lifetime Alberta Centennial Education Savings Grant |
$800 per beneficiary |
| Maximum lifetime Canada Learning |
$2,000 per beneficiary |
|
