If you save money in an RESP, the government will add to your savings through the CESG program. In most cases, the person who sells you the savings plan will take care of applying for you. Here are some questions you should ask:

How much money can I get?

For families with incomes over $74,357: the grant adds as much as $500 each year for each child in your plan, until the end of the year they reach age 17. Lower income families can get more.

Tip: To get the full grant, you have to save $2,500 each year. Even if you can’t save that much, you will still get some government grant money for every dollar you do save. For instance, if you save $500, you will get $100 in grant money. If you save more than $2,500 each year, there is no grant money on those extra savings.

Is there any extra help for people with lower incomes?

Yes. Families with a yearly income below $74,357 can get up to $600 a year for each child through the CESG program.

If...	Then each year you get...
Your family income is under $37,178	$200 in grants on the first $500 you save for each child. $600 in grants if you save $2,500 for each child.
Your family income is between $37,178 and $74,357	$150 in grants on the first $500 you save for each child. $550 in grants if you save $2,500 for each child.

 

How does the grant make my money grow faster?

Let’s say you save $650 a year for 15 years. Now let’s say your money will grow by 5% each year. This chart shows you how much faster your savings would grow with the grant added in. In this case, you could get more than $3,000, free!

What other rules do I need to know about the grants?

• There is a time limit on every RESP for getting grants.  You can make contributions for 21 years, but you cannot get any more grants after December 31st of the year the child turns 17.
• The total lifetime CESG for each child is $7,200.

What if your child does not go on to further studies, or you need the money you’ve saved for something else? The manager of your plan will send the CESG back to the government; you are not allowed to keep it.

Watch this video of Kathryn DelGreco, Vice President at TD Waterhouse, with Rob Carrick from the Globe and Mail discussing registered education savings plans (RESPs) and Canada education savings grants (CESGs).