Do you qualify for additional education savings grants?

By: Sound Choices • January 4, 2019 • Personal Finance
A Registered Education Savings Plan (RESP) is a tax-sheltered plan registered with the Canada Revenue Agency (CRA) that can help families save for their children’s post-secondary education.

Contributions made to an RESP grow tax free until the funds are withdrawn to pay when the beneficiary is registered in a qualifying educational program.

RESP savings can be supplemented with government education savings initiatives:

Canada Education Savings Grant (CESG)

If you contribute to the RESP, the child could also qualify for the Canada Education Savings Grant and the additional amount of Canada Education Savings Grant.

The CESG is a grant that the federal government deposits directly into an RESP but payment is dependent upon contributions made into the RESP.

All RESPs are eligible for Basic CESG

  • $500 each year (20% of the first $2,500 of annual contributions per beneficiary)
  • Up to $1,000 if carry-forward room is available (grant room is cumulative and can be carried forward)
  • $7,200 Lifetime CESG maximum per beneficiary (this includes both the Basic and Additional CESG)

Additional CESG to qualifying families*

  • Family income <$47,630: $100 each year (additional 20% on the first $500 of annual contributions per beneficiary)
  • Family income $47,631–$95,259: $50 each year (additional 10% on the first $500 of annual contributions per beneficiary)

What determines if you are eligible for the CESG?

How do I apply for the CESG?

  • Ensure your tax returns are up to date
  • Open and contribute to an RESP with the child named as a beneficiary – make sure the RESP promoter allows for the CESG payment as not all do
  • Complete the CESG application form. Your RESP provider will then request the CESG. 

Once the application is approved, the appropriate amount will be deposited directly into that RESP.

For more information on RESPs, visit or contact your financial advisor.

* Source: Dollar amounts are updated annually based in part on the rate of inflation.

Every effort has been made to ensure accuracy at the time of publication, however accuracy cannot be guaranteed and AGF takes no responsibility for reliance on the information contained herein. The contents of this Web site are provided for informational and educational purposes, and are not intended to provide specific individual advice including, without limitation, investment, financial, legal, accounting or tax. Please consult with your own professional advisor on your particular circumstances.

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