Having a Child

Increasing Your Savings Through the Canada Education Savings Grant (CESG)

The Canada Education Savings Grant Program, established by the federal government, aims to encourage parents to invest in the postsecondary education of their children.

This grant corresponds to 20% of the annual contributions paid into an RESP, up to a maximum of $500 per year, per beneficiary. The lifetime maximum grant paid per beneficiary cannot exceed $7,200.

The grant amounts received accumulate tax sheltered in the RESP. During the beneficiary’s postsecondary education, these amounts will be added to income paid in the form of educational assistance payments. The CESG does not affect the allowable contribution limit per beneficiary.

If no contribution is made for a given year or if the contributions paid are lower than the contributions required to obtain the maximum CESG ($500), you may carry forward unused CESG room to subsequent years, as long as the beneficiary is eligible. However, the total annual grant amount paid cannot exceed $1,000.

Canada Education Savings Grant Program

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