QESI: the grant every parent in Quebec should know about

The QESI adds at least 10% on your first $2,500 contributed per year to a Registered Education Savings Plan and can total $3,600 for life per beneficiary. This financial assistance leverages your contributions to transform your savings.

This provincial measure was introduced in 2007 to encourage Quebec families to save for their children’s education. Kaleido played an active role in its development by lobbying the Quebec government. Today, the Quebec Education Savings Incentive is proof of our positive impact on education policy.

In this article:

• Understanding how the QESI works
• How much can you receive from the QESI?
• What is the additional QESI?
• Receive the QESI in 3 easy steps
• Compare the QESI to other RESP grants
• How to optimize the QESI in your education savings strategy
• FAQ

The Quebec Education Savings Incentive is a bonus for contributions made to an RESP. Once a year, the Quebec government will make a direct contribution to your child’s education savings account, based on a set percentage of what you invest. 

QESI: amounts, limits and ceiling

The Basic QESI corresponds to 10% of the first $2,500 contributed to an RESP. An additional contribution is also available for eligible families. In total, this grant can amount to $3,600 lifetime per beneficiary, regardless of the number of RESP accounts in their name.

Conditions for receiving the QESI

To qualify for the QESI, your beneficiary must meet a few simple criteria: 

• Have a Social Insurance Number (SIN); 
• Reside in Quebec on December 31 of the tax year; 
• Hold an RESP in their name. 

You can accumulate this financial incentive until December 31 of the year in which they turn 17, provided you have contributed certain amounts before the end of the year in which they turned 15. 

The annual maximum is $250 for the basic QESI, which means that you must contribute $2,500 to obtain the full benefit. If you do not, you will receive the equivalent of 10% of what you invested. To better understand how the provincial grant works, here are three scenarios based on different monthly contribution amounts.

Over time, these bonuses can represent significant financial assistance, since they will also generate returns and increase the amount available for your young person’s post-secondary education. 

What happens to unused grants? 

If you start contributing to an RESP late, you can recover your unused grants one year at a time. This catch-up mechanism increases the grant-eligible contribution limit to $5,000 per year and allows you to obtain up to $500 in QESIs. 

This makes it possible to accelerate your savings and go for as many grants as possible in your teenager’s RESP.

In addition to the basic QESI, some eligible families may receive an additional amount, calculated based on adjusted family net income. This 5% or 10% bonus is added to the first $500 contributed per year, representing additional amounts of $25 and $50 per year, depending on your eligibility. 

The steps you need to follow to take advantage of the Quebec Education Savings Incentive for your child are pretty simple: 

1. Open an RESP.
2. Provide your beneficiary’s SIN. 
3. Contribute to the RESP. 

Once this is done, our team will apply for the QESI on your behalf, and the amount you qualify for will be paid directly into your Education Savings Account, once a year, usually around May. 

The Quebec Education Savings Incentive complements the two federal grants that enhance education savings in Canada: the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB).

QESI and CESG: what is the difference? 

The principle behind the Canada Education Savings Grant is similar to the QESI, offering a bonus on your contributions. The federal grant, however, is more generous, up to $7,200 per child, and it is paid monthly.   

The basic CESG contributes 20%, up to an annual maximum of $500 per child for all Canadians. For eligible families, the additional CESG increases this contribution by up to 40% on the first $500 invested. The maximum annual amount can therefore rise to $600, depending on family income.  

QESI and CLB: two separate federal grants 

The Canada Learning Bond is a federal grant of up to $2,000 per child for families with lower incomes or special circumstances. Unlike the QESI, the CLB does not require RESP contributions. An amount of $500 is paid in the first year of CLB eligibility, followed by $100 in subsequent years. 

A few good habits, such as contributing at an early age and setting up monthly contributions, can help you take full advantage of education savings grants.  

If you have several children, investing in individual RESPs—as opposed to a family plan—will also help you avoid certain disadvantages associated with the overlap between older children’s education withdrawals and younger children’s access to the QESI. 

Maintaining a regular savings pattern—and adapting it to variations in your budget—will help your RESP grow in value over the long term. But opening an RESP is still the first step to benefiting from available grants!