Canada's most powerful long-term savings tool for people with disabilities and their families.
The Registered Disability Savings Plan (RDSP) is one of Canada's most generous government programs — and one of the least used. If you or your child is eligible for the Disability Tax Credit (DTC), an RDSP can provide tens of thousands of dollars in government grants and bonds, plus decades of tax-sheltered growth. This guide explains everything you need to know to open and maximize an RDSP in 2025.
An RDSP is a registered savings plan designed to help Canadians with disabilities and their families build long-term financial security. Like an RRSP or RESP, contributions grow tax-sheltered inside the plan. But the RDSP has a unique feature: the federal government adds substantial grants (CDSG) and bonds (CDSB) that can dwarf your own contributions for lower-income beneficiaries.
To open an RDSP, the beneficiary must:
The CDSG is a matching grant from the federal government based on family net income and contributions made.
| Family Net Income | On first $500 contributed | On next $1,000 contributed | Annual max CDSG |
|---|---|---|---|
| $106,717 or less (2025 approx.) | 300% = $1,500 | 200% = $2,000 | $3,500 |
| Over $106,717 | 100% = $500 | 100% = $1,000 | $1,000 |
The lifetime CDSG maximum is $70,000 per beneficiary. Unused grant room accumulates from the year the beneficiary became DTC-eligible — up to 10 years of catch-up is possible when a plan is opened late.
The CDSB is paid to lower-income beneficiaries with no contribution required — the government deposits the bond simply because the RDSP exists.
| Family Net Income | Annual CDSB |
|---|---|
| $35,902 or less (2025 approx.) | $1,000/year |
| $35,902–$53,359 | Partial amount (sliding scale) |
| Over $53,359 | $0 |
Lifetime CDSB maximum is $20,000 per beneficiary. Like the CDSG, bond room can accumulate and be caught up for prior years of DTC eligibility.
This is the most important RDSP rule to understand. If you withdraw (take a Disability Assistance Payment — DAP) from an RDSP, any grants or bonds paid in the preceding 10 years must be repaid to the government at a rate of $3 repaid per $1 withdrawn. This makes early withdrawal from an RDSP extremely costly.
The 10-year rule means RDSPs are truly long-term vehicles. Plan to leave the money in place for at least 10 years after the last grant or bond was received before making significant withdrawals.
After age 60 (or when the beneficiary turns 60), the RDSP must begin making annual minimum payments called Lifetime Disability Assistance Payments (LDAPs). These are calculated based on plan value and a formula involving the beneficiary's age. Withdrawals are partially taxable in the beneficiary's hands (the grants, bonds, and growth portion — not the original contributions).
Most major Canadian banks and some credit unions offer RDSPs:
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Get KOHO Free — Use Code 45ET55JSYAIf anyone in your family is eligible for the Disability Tax Credit, opening an RDSP should be an immediate priority. The government grants and bonds available — up to $3,500/year in CDSG and $1,000/year in CDSB — represent one of the highest guaranteed returns available in any Canadian financial product. Apply for the DTC, open the RDSP as soon as it's approved, and take advantage of any available catch-up room. The earlier the plan is opened, the more government money can flow in.