KOHO — Best No-Fee Banking for Disability Support Recipients
$0 fees · 5% cashback · Code 45ET55JSYA for $100 bonus
Get $100 Free →
🌟 The RDSP is one of Canada's most powerful savings tools — the government can contribute up to $90,000 in grants and bonds over a lifetime, entirely free money for eligible Canadians with disabilities.
What is an RDSP?
A Registered Disability Savings Plan (RDSP) is a long-term savings account designed to help Canadians with disabilities save for their future. The federal government contributes free money through the Canada Disability Savings Grant (CDSG) and Canada Disability Savings Bond (CDSB). There is no annual contribution limit, and the lifetime limit is $200,000.
RDSP Eligibility
Who Can Open an RDSP?
- Must qualify for the Disability Tax Credit (DTC) — requires certification by a medical professional
- Must be a Canadian resident
- Must have a valid SIN
- Must be under 60 years of age (to receive grants/bonds)
- RDSP can be opened for a child by a parent or legal guardian
Canada Disability Savings Grant (CDSG)
| Family Income | On First $500 Contributed | On Next $1,000 Contributed | Annual Max Grant |
|---|
| Under $106,717 (2025) | $3 for every $1 (300%) | $2 for every $1 (200%) | $3,500/yr |
| Over $106,717 | $1 for every $1 (100%) | $1 for every $1 (100%) | $1,000/yr |
Lifetime maximum CDSG: $70,000. The government matches your contributions with free grant money.
Canada Disability Savings Bond (CDSB)
Free Government Money — No Contribution Required
The CDSB is paid directly to the RDSP based on family income — you don’t need to contribute anything to receive the Bond:
- Family income under ~$34,863 (2025): $1,000/year Bond
- Family income $34,863–$53,359: Partial Bond (sliding scale)
- Family income over $53,359: No Bond
- Lifetime maximum CDSB: $20,000
- No contribution is needed to receive the CDSB — it’s truly free money
RDSP Key Rules
Important RDSP Rules to Know
- Lifetime contribution limit: $200,000 (no annual limit)
- 10-year repayment rule: If you withdraw within 10 years of receiving a grant or bond, you must repay $3 for every $1 withdrawn
- Minimum annual withdrawal: Must begin by December 31 of the year you turn 60
- DTC must be maintained: If DTC is no longer valid, you may need to close the RDSP
- Investment growth: RDSP funds grow tax-deferred — you pay tax only when you withdraw
- Carry-forward room: Unused grant room can be carried forward up to 10 years
How to Open an RDSP
Step-by-Step RDSP Setup
- Step 1: Apply for the Disability Tax Credit (DTC) using Form T2201 — have a medical professional certify your disability
- Step 2: Once DTC is approved by CRA, contact a participating RDSP issuer (TD, RBC, Scotiabank, BMO, CIBC, or Plan Institute)
- Step 3: Open the RDSP account with your SIN and DTC approval
- Step 4: Apply for CDSG and CDSB at the time of opening (done by the issuer)
- Step 5: Choose investments within the RDSP — GICs, mutual funds, ETFs, or savings accounts
Frequently Asked Questions — RDSP Canada 2025
How much government money can I get in an RDSP?
The federal government can contribute up to $70,000 in Canada Disability Savings Grants (CDSG) and up to $20,000 in Canada Disability Savings Bonds (CDSB) over a lifetime — a total of $90,000 in free government money. This is on top of your own contributions and investment growth. The RDSP is one of the best savings programs in Canada for eligible individuals.
What is the Disability Tax Credit (DTC) and do I need it for an RDSP?
Yes — you must qualify for the DTC to open an RDSP and receive grants and bonds. The DTC is a non-refundable tax credit for Canadians with severe and prolonged physical or mental impairments. Apply using Form T2201 (signed by a medical professional) submitted to CRA. Approval typically takes 8–16 weeks. Once approved, you can open an RDSP and receive retroactive grants for the past 10 years.
Can I withdraw from my RDSP whenever I want?
You can make withdrawals (called Lifetime Disability Assistance Payments or LDAPs) but the 10-year repayment rule applies. If you receive any grant or bond in the past 10 years and make a withdrawal, you must repay $3 for every $1 withdrawn (up to the amount received). This makes the RDSP best suited as a long-term savings plan, not a short-term emergency fund. Keep other emergency savings (like KOHO or EQ Bank) separate.
Does an RDSP affect disability benefits?
RDSP assets and income are generally exempt from provincial disability benefit calculations in most provinces. However, rules vary by province — Ontario, BC, Alberta, and other provinces have specific RDSP exemption rules. Consult with a financial advisor who specializes in disability benefits to understand how an RDSP affects your specific provincial program (ODSP in Ontario, AISH in Alberta, etc.).
What banks offer RDSPs in Canada?
All major Canadian banks offer RDSPs: TD, RBC, Scotiabank, BMO, and CIBC. The non-profit Plan Institute also offers RDSPs through Plan/RDSP. When comparing RDSP providers, look at investment options, fees, and customer service for disability support. Most banks have dedicated RDSP specialists who can walk you through the application and grant process.
Can I use KOHO alongside an RDSP?
Yes — KOHO is excellent for day-to-day spending when managing disability benefits. Use KOHO ($0 fees, 5% cashback, $100 bonus with code 45ET55JSYA) for everyday purchases while keeping your RDSP as a long-term savings vehicle at TD, RBC, or another bank. KOHO's no-fee model means more of your benefits go toward living expenses rather than bank fees.
Disclaimer: RDSP rules, grant amounts, and income thresholds change annually. Consult a financial advisor or the Canada.ca RDSP page for current information. KOHO is not an RDSP provider. Not financial advice.