Our Disclosure

The content on this website includes links to our partners and we may receive compensation when you sign up, at no cost to you. This may impact which products or services we write about and where and how they appear on the site. It does not affect the objectivity of our evaluations or reviews. Read our disclosure.

RESP Matching in Canada: How To Get Government Grants and Bonds

Updated:

Fact Checked

Contributing to your child’s Registered Education Savings Plan (RESP) can help set them up for life.

To make this task easier, the government of Canada matches your RESP contributions each year up to a maximum through the Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB).

There are also provincial education savings programs and grants that help grow your child’s RESP account, including those offered by Quebec and British Columbia.

Read on to learn about the various RESP government matching grants and how they work.

How RESP Matching Works

If you have a child, you can contribute to an RESP account on their behalf, and they can use the funds to pay for the costs of post-secondary education in the future.

For each eligible contribution you make, the government provides a 20% matching grant known as the Canada Education Savings Grant.

CESG Matching Grant

This is how the CESG matching grants work:

Assuming you contribute $1,000 to an eligible RESP in 2023, the Canadian government, via Employment and Social Development Canada (ESDC), will match your contributions with a $200 grant (i.e. 20% of your RESP contribution).

This is equivalent to an extra 20 cents for every dollar of contribution.

The maximum CESG grant per year is $500 on a maximum contribution amount of $2,500.

If you did not contribute the maximum amount of $2,500 in previous years, you can carry forward this contribution room and get up to a maximum of $1,000 CESG grants in any one year. This is equivalent to contributing $5,000 out-of-pocket in a single year.

Overall, you can receive up to $7,200 in total CESG money per child per lifetime.

Note that you can contribute more than $2,500 per year to an RESP. If you do so (and do not have unused contribution or grant room from a previous year), your CESG is limited to a maximum of $500.

There is also an “additional CESG” for eligible families who meet the income threshold.

What the a-CESG does is accelerate how quickly you get the RESP grant.

For example, if your adjusted income is $53,359 or less (in 2023), you get a 20% grant on the first $500 you contribute and 20% on the first $2,500 for a total of $600 in grant money per year.

This accelerated grant matching does not change the lifetime grant amount of $7,200 per child.

Adjusted income 2023≤$53,359$53,359 – $106,717>$106,717
a-CESG on first $500 RESP contribution20% = $10010% = $50N/A
Standard CESG on first $2,500 RESP contribution20% = $50020% = $50020% = $500
Maximum annual CESG$600$550$500
Total lifetime CESG$7,200$7,200$7,200

Canada Learning Bond

Eligible families qualify for another RESP grant known as the Canada Learning Bond (CLB).

The CLB provides an initial $500 grant in the first year and an additional $100 each year until age 15, for a total of $2,000 in grant money.

Unlike the CESG, you do not need to make an RESP contribution to receive the CLB.

Eligibility for the CLB is based on meeting specific income thresholds.

RESP Matching in Canada

Provincial RESP Matching and Grants

Some provincial governments also match your RESP contributions:

Quebec Education Savings Incentive

The Quebec Education Savings Incentive (QESI) provides a refundable tax credit that is paid into your child’s RESP account.

This grant matches 10% of your RESP contributions each year up to a maximum of $250.

The lifetime QESI grant is a maximum of $3,600 per child.

Low- and moderate-income families who meet the income threshold may qualify for up to an extra $50 per year.

BC Training and Education Saving Grant

The BCTESG provides a $1,200 grant per child that is deposited in their RESP.

This is a one-time benefit when the child is between 6 and 9 years old.

This is the Maximum Contribution for RESPs

The lifetime maximum RESP contribution per beneficiary is $50,000. You can make contributions for up to 31 years, and an RESP account can remain open for up to 35 years.

What is the maximum government matching grant?

If you qualify for the CESG and CLB, each child can receive up to $9,200 ($7,200 + $2,000).

If you are a resident of Quebec, you could get $3,600 matching in QESI grants for a total of $12,800 per child.

If you are a resident of British Columbia, you could get an extra $1,200 grant for a total of $10,400.

If you contribute more than the maximum allowed to an RESP, a 1% monthly penalty tax is charged on the excess contribution until is withdrawn.

RESP Investments

You can use an RESP to hold various investments, including stocks, bonds, GICs, mutual funds, ETFs, etc.

Learn about some of the best RESP investments and RESP providers in Canada.

Open a Wealthsimple RESP investment account and get a $25 bonus after depositing $500.

RESP Matching in Canada FAQs

How long does it take to receive matching RESP grants?

It can take 1-2 months for matching CESG grants to be deposited after you have made an RESP contribution.

How do I track my RESP contributions?

You can manually track how much you are contributing to the RESP or contact the Canada Education Savings Program by phone at 1-888-276-3624 to find out.

Do you get a tax receipt for RESP contributions?

No, a tax receipt is not issued for RESP contributions because RESP contributions are not tax-deductible.

Can I contribute more than $2,500 per year to an RESP?

Yes, you can contribute more than $2,500 per year; however, only the first $2,500 is eligible for the maximum annual $500 in grant money.

How do I maximize my RESP grant?

You can get the full CESG of $7,200 by contributing a maximum of $2,500 per year for at least 14 years and $1,000 in the fifteenth year.

Does the Ontario government match your RESP contributions?

No, Ontario does not have a provincial RESP matching program. Ontario residents may qualify for the CESG, additional CESG, and CLB grants.

Related:

Best Freebies and Deals This Month

Get a $20 bonus + Earn up to 5% cash back and Interest with this FREE Card

Best free* reloadable prepaid card with a $20 signup bonus after your first purchase.

Earn up to 5% unlimited cash back on purchases.

Enjoy 5% savings interest rate on your entire balance (up to 3x more than the big banks).

Guaranteed approval card, free unlimited transactions, & budgeting app.

Add on credit-building and get free monthly Equifax credit score checks.

Best FREE chequing account offer in Canada with $400 cash bonus

$400 cash bonus when you set up a direct deposit of $100 for 3 months.

Forget about monthly account fees or minimum balance requirements.

Unlimited free debits and Interac e-Transfer transactions.

Earn high-interest rates on a free savings account (6.00% savings offer).

Get the prepaid card that pays interest and unlimited cash back

One of the best no-fee prepaid debit cards in Canada.

Get 0.50% unlimited cash back on all purchases.

Earn 4.00% interest on your entire balance.

No ATM withdrawal fees and no FX fees when you spend abroad.

Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

About Savvy New Canadians

Savvy New Canadians is one of Canada's top personal finance platforms. Millions of Canadians use our site each year to learn how to save for retirement, invest smartly, maximize rewards, and earn extra cash. We have been featured in prominent finance media, including Forbes, Globe and Mail, Business Insider, CBC, MSN, Wealthsimple, and TD Direct Investing. Learn more about Savvy New Canadians.

Free financial education

Expert advice

Free resources

Detailed guides

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.