Natasha Macmillan, Business Unit Director - Everyday Banking
There are a number of reasons to use an RESP, but the most important are tax savings and government grants. There are four government grants you might be eligible for, some of which are dependent on your province of residence.
- Canada Education Savings Grant (CESG): This grant contributes extra money to RESP savings, based on the child’s household income and the amount contributed to the RESP. The CESG can provide up to a lifetime maximum of $7,200 to an RESP. RESP beneficiaries can receive up to $500 each year of eligibility and children from low- or medium-income families could receive up to another $100 per year.
- Canada Learning Bond (CLB): The CLB contributes up to $2,000 to RESPs for children from families qualifying for the National Child Benefit Supplement. Families earning less than $30,000 per year qualify for the CLB. It pays $500 when the RESP is opened and an additional $100 per year for up to 15 years, as long as the child remains eligible.
- Quebec Education Savings Incentive (QESI): Available to residents of Quebec, the QESI offers a refundable tax credit paid directly into the RESP, worth up to $3,600 per child. It pays 10% of contributions, up to $250 per year (or $300 for low- and middle-income families).
- British Columbia Training and Education Savings Grant (BCTESG): The BCTESG is available to residents of BC and provides a one-time grant of $1,200 to eligible children between the ages of 6 and 9.