Free Government Money: The federal government contributes a Canada Education Savings Grant (CESG) of 20% on the first $2,500 you contribute per year — that's up to $500 free per year per child, with a lifetime maximum of $7,200 CAD.
RESP Growth Projector
Canada Education Savings Grant (CESG) Rules
| Rule | Details |
|---|---|
| Basic CESG Rate | 20% on first $2,500 contributed per year = max $500/year per child |
| Lifetime CESG Limit | $7,200 CAD per beneficiary |
| CESG Carry-Forward | Unused CESG room carries forward — you can catch up by contributing $5,000/yr to claim $1,000 CESG in catch-up years |
| Income-Tested Additional CESG | Families with net income ≤ $55,867: extra 20% on first $500 = extra $100. Families $55,867–$111,733: extra 10% on first $500 = extra $50 |
| Contribution Deadline Age | Last contribution must be before child's 18th birthday |
| Annual Contribution Limit | No annual limit — but only the first $2,500/yr qualifies for CESG. Lifetime contribution limit: $50,000 per child |
Canada Learning Bond (CLB) — Low-Income Families
The Canada Learning Bond (CLB) provides additional government money directly to the RESP for children from low-income families — no personal contribution required to receive it.
- Initial Bond: $500 when the RESP is first opened
- Annual Bond: $100 for every subsequent year the family remains eligible, until the child turns 15
- Maximum Lifetime CLB: $2,000 per child (1 year × $500 + 15 years × $100)
RESP Plan Types Compared
| Plan Type | Best For | Key Restriction |
|---|---|---|
| Individual RESP | One beneficiary (any person) | Can only be used for that one child |
| Family RESP | Multiple children who are blood-related or adopted | All beneficiaries must be related by blood or adoption |
| Group RESP | Pooled investment through a scholarship foundation | Very strict rules; CESG is forfeited if plan is cancelled early |
Non-Resident Warning: If the RESP subscriber (parent) becomes a non-resident of Canada, the CRA requires the RESP account to be closed. All CESG and CLB grants received must be repaid to the government. The investment growth (accumulated income) can be rolled into an RRSP or withdrawn with a 20% withholding tax. Plan your emigration timing carefully before closing an RESP.