Canada Education Savings Grant (CESG) Guide 2025

Updated March 2025 · 10 min read

The Canada Education Savings Grant (CESG) is a federal government grant that adds free money to your child's Registered Education Savings Plan (RESP). It is the primary incentive for Canadian families to open RESPs and start saving for post-secondary education. Understanding how to maximize CESG can add thousands of dollars to your child's education fund at no extra cost to you.

Basic CESG

The basic CESG is available to all Canadian families regardless of income:

• Rate: 20% of annual RESP contributions
• Maximum contribution that earns CESG: $2,500 per year
• Maximum CESG per year: $500
• Lifetime maximum CESG per child: $7,200
• CESG eligibility ends: December 31 of the year the child turns 17 (with restrictions in years 16 and 17)

Additional CESG for Lower-Income Families

Families with lower net incomes receive a higher CESG rate on the first $500 of annual contributions:

Middle-Income Families (approx. $55,867–$111,733 net family income in 2024)

• Additional 10% on the first $500 contributed = extra $50/year
• Total CESG on first $500: 30% = $150

Lower-Income Families (below approx. $55,867 net family income in 2024)

• Additional 20% on the first $500 contributed = extra $100/year
• Total CESG on first $500: 40% = $200

Income thresholds are updated annually by the federal government. Check Canada.ca for the current year's thresholds.

CESG Carryforward

If you don't contribute $2,500 in a given year, the unused CESG room carries forward. You can catch up in future years, but there is a cap:

• Maximum CESG earned in any single year: $1,000 (by contributing $5,000 to catch up on two years of room)
• You can only carry forward one year of room at a time

Example: You open an RESP when your child is 3, but don't contribute anything for 2 years. At age 5, you can contribute $5,000 and earn $1,000 in CESG (catching up the missed year). You cannot catch up two missed years at once beyond the $1,000 annual CESG cap.

CESG Age Restrictions

There are important restrictions on CESG for children who are 16 or 17 years old. To receive CESG in those years, at least one of the following must be true:

• A minimum of $2,000 has been contributed to the RESP and not withdrawn before the end of the calendar year the child turned 15, OR
• A minimum annual contribution of $100 was made in any 4 years before the child turned 16

This rule exists to prevent families from opening RESPs right before university just to collect the grant. Start saving early.

How CESG Is Paid

CESG is not paid directly to you — it is deposited into your child's RESP by Employment and Social Development Canada (ESDC). Your RESP provider handles the paperwork and submits your contribution data to the government. CESG typically appears in the RESP within a few weeks of a contribution being made.

When CESG Must Be Repaid

CESG must be returned to the government if:

• The RESP is closed without the beneficiary attending post-secondary education
• The beneficiary is ineligible for an EAP (Educational Assistance Payment)
• RESP contributions are over-contributed and the excess is withdrawn

If you change the beneficiary to another eligible child under 21 within the family, grants can often be preserved rather than repaid.

Maximizing CESG Over a Child's Lifetime

To collect the full $7,200 in CESG:

1. Open the RESP in the year of the child's birth
2. Contribute $2,500 every year from birth to age 14 (15 years × $500 = $7,500 in CESG — but lifetime cap is $7,200)
3. Ensure your RESP provider submits contributions promptly to trigger CESG deposits
4. If you miss years, catch up at $5,000/year to earn $1,000 CESG per year

CESG vs. Canada Learning Bond

These are two separate but complementary programs:

• CESG: Requires contributions — the government matches what you put in. Available to all income levels
• Canada Learning Bond (CLB): No contribution required — free money deposited for eligible low-income families only

Low-income families can receive both CESG and CLB, making the RESP exceptionally powerful for those families who engage with it.