Canada Education Savings Grant (CESG)*
The CESG equals 20% of the first $2,500 of your annual contributions. If your child is eligible for the CESG, you will receive a maximum of $500 to $600 annually until your child reaches the age of 17, to a lifetime amount of $7,200.
With CESG you may qualify for up to $7,200 in grants.
FAQ's on CESG
What is the Canada Education Savings Grant (CESG)?
Introduced in January 1998, the Canada Education Savings Grant (CESG) is a special financial incentive by the federal government for parents, family and friends to save for a child's education after high school. It provides people who invest in an RESP with a Basic Canada Education Savings Grant amount equal to 20% of yearly contributions, up to an annual maximum of $500 per eligible beneficiary, with a lifetime maximum of $7,200.
What is the Additional CESG?
The A-CESG is intended to help families receive the $7,200 lifetime maximum sooner by providing an addition 10% or 20% on the first $2,500 contributed to your RESP. Eligibility is based on net family income.*
For 2020, if your net family income is below $48,535*, the grant will be 40% for every dollar on the first $500 you save and 20% of the next $2,000 in your beneficiary's RESP each year. That means you could receive up to $600 in CESG per year.
If your net family income is between $48,535* and $98,208*, the grant will be 30% for every dollar on the first $500 you save and 20% of the next $2,000 in your beneficiary's RESP each year. That means you could receive up to $550 in CESG per year.
|Canada Education Savings Grant (CESG)
|Net Family Income1
||$48,535 or less
||More than $48,535 to $97,208
Paid on first $2,500 of annual contribution
|20% = $500
||20% = $500
||20% = $500
Paid on first $500 of annual contribution
|20% = $100
||10% = $50
||40% = $600
||30% = $550
||20% = $500
*Primary caregiver is the person who is primarily responsible for the care and upbringing of a child.
What's the maximum Canada Education Savings Grant CESG available for an RESP?
Please note that no matter which Canada Education Savings Grant formula you qualify for, the lifetime limit for each beneficiary remains at $7,200.
*This amount is indexed each year based on the rate of inflation.
How do I apply for a Canada Education Savings Grant (CESG)?
To apply for a CESG follow these simple steps:
- Register the birth or adoption of the child.
- Apply for a birth certificate for the child.
- Apply for a Social Insurance Number (SIN) for the child. Please visit https://www.canada.ca/en/employment-social-development/services/sin/apply.html for more information on the SIN application process.
- Open a Registered Education Savings Plan (RESP) and make a deposit.
- Download the appropriate form for your CESG application:
- If you are a parent and/or legal guardian and are contributing to your child's RESP, download form SDE 0093 E (The original form must be forwarded to the RESP promoter).
- If you are a grandparent, aunt, uncle or non-relative and are contributing to a child's RESP, download form SDE 0093 E – Annex B (The original form must be forwarded to the RESP promoter).
- Please note that this form must be sent along with the SDE 0093 E main form.
Are there any other CESG provisions?
There is a special rule for older beneficiaries. In order to receive CESG* when the beneficiary is 16 or 17 years old, at least one of the following conditions must be met:
* Certain conditions apply. See prospectus for full details
- A minimum of $2,000 of contributions must be made and not withdrawn in any year before the beneficiary is 16 years old
- A minimum of $100 of annual contributions must be made and not withdrawn in at least any four years before the year the beneficiary is 16 years old
Understanding the terms
"CESG" means the Canada Education Savings Grant which is the grant from the Government of Canada with the cumulative lifetime maximum of $7,200 per eligible Beneficiary.
"Basic CESG" means the Canada Education Savings Grant of up to 20% annually on up to $2,500 of Contributions to a Registered Education Savings Plan.
"Additional CESG" means the additional Canada Education Savings Grant available to qualifying families. The amount of Additional CESG is up to 20% annually on the first $500 of Contributions to a Registered Education Savings Plan.
For more terms visit our glossary page.
* Certain conditions apply, please see Prospectus for full details.