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An Registered Education Savings Plan (RESP) is a special savings account to help you, your family, or your friends save for you child’s education after high school. The money in the RESP will be invested so that it can grow and earn interest. You will not be taxed on the interest, and your child can withdraw the money tax-free.

The Government of Canada will add money to your child’s savings via the Canada Education Savings Grant (CESG) when you open a Registered Education Savings Plan (RESP) account. For more information, call toll-free 800-622-6232.

Canada Education Savings Grant (CESG)

The Government of Canada will add money to your child’s savings when you open a Registered Education Savings Plan (RESP) account. The Canada Education Savings Grant could add 20 to 40 cents to every dollar you save.

CESGs are based on family income. In fact, the amount can change as your family’s income changes. The grant provides a minimum of 20 cents for every dollar on the first $2,000 of annual RESP savings. However, your child may receive an additional grant on RESP savings if your net family income is:

Below $37,178*. In this case, the grant will be 40 cents for every dollar on the first $500 you save in your child’s RESP each year.

Between $37,178* and $74,357*. If this is the case, the grant will be 30 cents for every dollar on the first $500 you save in your child’s RESP each year.

Above $74,357*. If this is the case, the grant will remain 20 cents for every dollar on the entire $2000 you save in your child’s RESP each year

* This amount is updated each year based on the rate of inflation.

    To apply for an RESP and CESG:

  1. Apply for a Birth Certificate and SIN Number for your child
  2. Apply for the Child Tax Benefit
  3. Choose the RESP provider that best meets your needs. Explore financial institutions, group plan dealers and financial services providers to make your choice
  4. Open an RESP for a child and put money in it
  5. Ask your RESP provider to apply for the CESG on behalf of the child

For more information and updates check the Goverment of Canada Canlearn.ca website

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