The Registered Education Savings Plan (RESP) is Canada's best tool for saving for a child's post-secondary education. The government contributes up to $500/year in Canada Education Savings Grants (CESG), and low-income families may qualify for the Canada Learning Bond (CLB) worth up to $2,000. The lifetime RESP limit is $50,000 per beneficiary.
| Parameter | Amount |
|---|---|
| Lifetime contribution per beneficiary | $50,000 |
| Annual contribution (no annual limit, but CESG optimized at $2,500) | $2,500 for max CESG |
| CESG rate (basic) | 20% on first $2,500 = $500/year |
| CESG lifetime maximum | $7,200 |
| Additional CESG (income below $55,867) | 30% on first $500 = extra $100 |
| Additional CESG ($55,867–$111,733) | 25% on first $500 = extra $50 |
| Canada Learning Bond (CLB) | Up to $2,000 (no contribution required) |
The CESG is a government top-up on RESP contributions. The basic CESG gives 20 cents for every dollar contributed to a maximum of $2,500/year — so contributing $2,500 maximizes the $500 annual grant. Unused CESG room can be carried forward, but you can only catch up by an extra $2,500 per year (maximum $5,000/year for double grants).
The CLB is available to families receiving the National Child Benefit Supplement (NCBS) or who are receiving CCB based on low income. Key points:
RESP withdrawals fall into two categories:
Since students usually have little to no income, EAP withdrawals are often tax-free due to personal exemptions.
If the beneficiary doesn't pursue post-secondary education, you can:
Use KOHO's savings goals feature to build your annual RESP contribution. Set it and forget it — then maximize that CESG every year.