CANADA EDUCATION SAVINGS GRANT (CESG).
Through the Canada Education Savings Grant (CESG), the Government of Canada could contribute up to $7,200 to your child's education savings plan.
On top of your principal contributions,* CESG could add 20% on the first $2,500 contributed annually, to a maximum of $500 per child per year. Contribution room not used in a given year can be carried forward.
Who qualifies for CESG?
- Children who are Canadian residents;
- Children 17 years of age or younger; and
- Children who have an RESP**.
Additional Canada Education Savings Grant (A-CESG).
For families with modest incomes, the Government of Canada provides Additional Canada Education Savings Grants (A-CESG). On top of the basic 20% for the first $500 annual contribution, the A-CESG will add 10% or 20%, depending on your family’s net income.***
* For RESP contributions made on or after January 1, 1998.
** Subject to CESA guidelines.
*** Net income varies by Canada Child Tax Benefit application date. Income levels are indexed to inflation and will vary each year. A-CESG grants apply to RESP contributions made on or after January 1, 2005.