CESG: the grant that boosts your RESP

Since 1998, the CESG has been helping Canadian families save for their children’s post-secondary education.  

The principle is simple: when you contribute to your Registered Education Savings Plan, the Government of Canada puts an additional contribution in your beneficiary’s account. This amount is calculated as a percentage of 20% to 40%, depending on your family income. 

When your beneficiary begins their eligible post-secondary studies, the grants—including the CESG—and income generated in the RESP will be paid to them in the form of Education Assistance Payments (EAPs). 

In this article:

• How does the CESG work?
• What is the CESG’s financial potential?
• Who is eligible for the additional CESG?
• How to get the Canada Education Savings Grant
• How does grant catch-up work?
• Understanding the various RESP grants
• Optimize your education savings strategy with grants
• Frequently asked questions (FAQ)

The Canada Education Savings Grant adds a minimum 20% bonus to your contributions. Over the years, these amounts accumulate and increase the capital available for your child’s education—it’s like someone dropping an extra $2 into your piggy bank every time you add $10.  

CESG amounts, limits and maximums 

The basic Canada Education Savings Grant is equal to 20% of the first $2,500 contributed each year to an RESP. This means that $500 per calendar year can be paid as a grant into a child’s education savings account. 

This assistance provides important financial support, especially as it will generate returns over time. The lifetime CESG limit is $7,200 per beneficiary, even if your child’s favourite grandmother, godmother or uncle has also chosen to open an RESP in their name. 

Conditions for receiving the CESG 

To be eligible for the CESG, the beneficiary must simply: 

• reside in Canada; 
• have a Social Insurance Number (SIN);  
• be a beneficiary of an RESP.  

This federal grant can be paid until the end of the calendar year in which the young person turns 17, but you must comply with certain conditions to retain this right to the very end. 

What do I have to do to receive the CESG after age 15? 

For the CESG to be paid to a 16- or 17-year-old beneficiary, you must have met one of the following conditions before the end of the year in which your teenager turns 15: 

• Have contributed a minimum of $2,000 to their education savings account;  
• Have contributed at least $100 per year for four years to their RESP. 

Opening an RESP for a teenager is still advantageous, but make sure you do it in time, so you don’t leave any grants on the table. 

Over the years, the amounts received in grants and the income generated in your RESP help to grow the capital available for post-secondary education. Two effects come into play: 

• An immediate gain thanks to grants; 
• A long-term gain through tax-sheltered growth. 

This is the magic of compound interest!  

Value of the CESG under three savings scenarios

Here are three examples based on different savings strategies to illustrate the added value of the Canada Education Savings Grant if you contribute to your child’s RESP. 

Since the annual maximum of $500 is not reached in Scenarios A and B, these unused grants could be recovered at a later date through a catch-up strategy.

The additional CESG (A-CESG) supplements the basic Canada Education Savings Grant by 10% or 20% on the first $500 contributed in the year. This can represent up to an additional $100 per year for eligible families, until the lifetime cap of $7,200—which remains unchanged—is reached.

Income thresholds are established and updated by the Government of Canada. Your eligibility is determined automatically based on the tax information transmitted to the government. No additional steps are required to deposit these amounts into your child’s RESP.

CESGs and A-CESGs in figures

The amount of CESG received each year depends not only on contributions paid, but also on family income.

The process is simple: you open an RESP, then our team takes care of applying for the Canada Education Savings Grant. 

Process for receiving the grant 

1. Open an RESP.
2. Provide your beneficiary’s SIN. 
3. Make your contributions. 

Once these steps have been completed, the CESG is automatically added to your RESP, helping to grow your child’s post-secondary savings.

RESP rules give you the chance to reclaim your unused grants. They allow you to recover one year at a time, helping families maximize the CESG, even when they start saving later.  

It’s simple: your contributions can reach $5,000 per year ($2,500 basic + $2,500 catch-up), generating $1,000 from the CESG.  

Understanding the various RESP grants 

The CESG is part of a package of grants available through the Registered Education Savings Plan. It is in addition to other financial assistance, such as the Quebec Education Savings Incentive (QESI) and the Canada Learning Bond (CLB). 

The difference between CESG and QESI 

Complementary and similar to the CESG in its operation, the Quebec Education Savings Incentive is a provincial grant for Quebec families. It boosts the first $2,500 contributed per year by at least 10%, so it can add $250 per year to your beneficiary’s RESP, or up to $300, including the bonus for eligible families. The lifetime limit is $3,600 per child. 

Unlike the CESG, which you receive on a monthly basis as you make contributions, the QESI is paid only once a year, usually in May. 

CESG and CLB: two separate federal grants 

Like the CESG, the Canada Learning Bond is a federal grant but is intended exclusively for financially eligible families. It can be as much as $2,000 per child. Unlike the CESG, the CLB is paid out annually, with no contribution required. Simply open an RESP and meet the eligibility criteria to benefit. 

Optimize your education savings strategy with grants 

Maximizing your grants starts with a realistic assessment of your ability to save. Then it’s a matter of developing winning savings habits, such as starting to contribute early and regularly, in addition to recovering your unused grants. With the right planning—and all the knowledge you’ve gained by reading this article—you can now make the most of your RESP.