Canada Education Savings Grant (CESG)

The Canada Education Savings Grant (CESG) program provides grants to Registered Education Savings Plan (RESP) contributors until the beneficiaries reach the age of 17.

Delivered by: Human Resources and Social Development Canada (HRSDC)

Eligibility Information

Parents, relatives and friends of a beneficiary may contribute up to an annual limit of $4,000 and a lifetime limit of $42,000 per child.
Contributions must be made prior to the end of the calendar year in which the beneficiary turns 17.
Special conditions exist for beneficiaries aged 16 and 17.
Other criteria may apply.

In order to receive the CESG, children must meet the following requirements:

The amount of the grants is based on the annual contributions made to RESPs and is calculated as follows:

Families with an annual net income of less than $36,378 receive 40% of the first $500 contributed yearly to the child's RESP.
Families with an annual net income of $36,378 to $72,756 receive 30% of the first $500 contributed yearly to the child's RESP.
Families with an annual net income of over $72,756 receive 20% of the first $500 contributed yearly to the child's RESP.
All contributions over the first $500, to a maximum of $2,000, made yearly to a child's RESP enable families to receive a 20% grant on that contribution, regardless of family income.
The maximum annual grant is $500 per beneficiary, to a maximum lifetime grant of $7,200.
Grant contribution room can be carried to future years.

Information on RESPs and CESG application procedures is available from mutual fund and brokerage companies, insurance and trust companies, companies and foundations that specialize in education savings plans, and other financial institutions.

The Government of Alberta provides its own incentive for all children born to or adopted by Alberta residents in 2005 or later.