What is 'Canada Education Savings Grant (CESG)'

The Canada Education Savings Grant (CESG) is a grant from the Government of Canada paid directly into a beneficiary's Registered Education Savings Plan (RESP). It adds 20 percent to the first $2,000 in contributions made into an RESP on behalf of an eligible beneficiary each year.

BREAKING DOWN 'Canada Education Savings Grant (CESG)'

The Canada Education Savings Grant is an incentive program designed to encourage people to save for a child's education and to lessen the financial burden of a post-secondary education.

Payment of the CESG depends on contributions made into the RESP. Money in an RESP can be used to help pay for full-time or part-time studies in an apprenticeship program, a CEGEP, trade schools, colleges and universities.

How the Canada Education Savings Grant Works

To gain access to the Canada Education Savings Grant, personal contributions must be made into a Registered Education Savings Plan (RESP). Anyone can open an RESP for a child–not just a child’s parent.

The CESG provides 20 cents on every dollar contributed per year, up to a maximum of $500 on a contribution of $2,500. If a contribution cannot be made in any given year, a plan holder is allowed to catch up in future years. Contributions can be made to a CESG until the end of the calendar year in which the child turns 17.

Depending on the primary caregiver's income, a child may also be eligible for an additional 10 to 20 percent contribution placed into their RESP from the Canada Education Savings Grant.

Eligibility for the Canada Education Savings Grant

The Canada Education Savings Grant is available until the end of the calendar year in which the child turns 17, as long as the child is a Canadian resident, has a valid Social Insurance Number, an RESP has been opened in their name, and a request is made for the grant. To be eligible for the grant, a caregiver must contribute to a child’s RESP prior to the end of the calendar year in which they turn 15 years old.

Sixteen or 17-year-old children may be eligible to receive the Canada Education Savings Grant, if at least one of the following conditions is met:

  • A total minimum of $2,000 was contributed to (and not withdrawn from) the RESP of the child before the end of the calendar year they turned 15; or
  • A minimum annual contribution of $100 was made to (and not withdrawn from) the RESP in at least four of the years before the end of the calendar year the child turned 15
RELATED TERMS
  1. Grant

    A grant is an award, typically financial, from one entity to ...
  2. Government-Sponsored Retirement ...

    Government-Sponsored Retirement Arrangement - GSRA - is a Canadian ...
  3. Child Tax Credit

    The child tax credit is a credit given to taxpayers for each ...
  4. Qualified Savings Bond

    A qualified savings bond is a series EE or I bond, issued after ...
  5. Pell Grant

    A pell grant is a program that provides money to eligible undergraduate ...
  6. Canada Savings Bond (CSB)

    Canada Savings Bond is a financial product issued by the Bank ...
Related Articles
  1. Financial Advisor

    Invest In Your Education With An RESP

    All Canadians should know the benefits of these flexible education savings plans.
  2. Taxes

    Canadian Grants And Tax Credits Fund Education

    RESPs and other grants help parents save for post-secondary education for their children.
  3. Personal Finance

    Don't Overlook 529 Plans for College Savings

    Don't overlook 529 plans as a tax-advantaged way to save for a child' education.
  4. Personal Finance

    5 Ways to Save and Pay for College

    College tuition is expensive. Here are five ways to save and pay for college.
  5. Personal Finance

    How to Save for Your Kids’ College Education

    The continuous rising costs of a college education require substantial planning and savings. Starting early is key.
  6. Personal Finance

    5 Answers to Your Questions About 529 Plans

    Understanding how 529 plans work can go a long way toward helping you save for your child’s college education.
  7. Taxes

    Tax-Smart Ways To Help Your Kids/Grandkids Pay For College

    Learn about plans and accounts that allow you to efficiently save for your child or grandchild’s education while shielding the savings from the IRS as much as possible.
  8. Personal Finance

    Changes to 529 Plans Offer Advantages

    With changes to tax law and 529 plan rules, these educational savings tools are even more valuable. Here are some old and new benefits of 529 plans.
  9. Personal Finance

    Opening Your Child's First Bank Account

    Teach your children to save up to meet their spending - and saving - goals.
RELATED FAQS
  1. Can I contribute to both a 529 plan and a Coverdell education savings account?

    You can contribute to both, and when your child is ready to attend college, as colleges do accept payments from both. There ... Read Answer >>
  2. What options do I have to save for my child's education?

    There are numerous options available to invest savings for a child's education: State-sponsored "529" college savings plans: ... Read Answer >>
Trading Center