Registered Education Savings Plans are government approved plans for the purpose of providing post-secondary education funding for a beneficiary. On top of government grant and bond contributions, the income that is earned within the plan is not taxed until it is withdrawn.
Government Grants and Bonds
Don't miss out on free contributions to your child's education savings! Talk to us so we can help ensure you receive the grants you may be eligible for.
BC Training and Education Savings GrantParents can apply for the new British Columbia Training and Education Savings Grant starting August 15, 2015.
Announced in 2013, the grant is a one-time provincial incentive of $1,200 available to children when they turn six years old. Parents with children born between January 1, 2007 to August 15, 2009 need to apply for the grant before August 14, 2018. Parents with children born after August 15, 2009 need to apply between their child's sixth and ninth birthdays.
You do not need to contribute to an RESP to receive this grant, but you do need to open an RESP before the child turns nine.
Canada Education Savings GrantThe Canada Education Savings Grant (CESG) is a grant from the Government of Canada that adds 20% to the first $2,500 of annual RESP contributions. This means that the RESP can collect an extra $500 a year (up to a lifetime maximum of $7,200 per beneficiary). Depending on family net income, the CESG can increase to 30% to 40% on the first $500 of annual RESP contributions (this additional benefit is referred to as the Additional Canada Education Savings Grant).
This grant is based on the contributions that you make towards your RESP.
Canada Learning BondThe Canada Learning Bond (CLB) is an additional grant meant to help modest income families. It is available to children born after December 31, 2003 and whose parents or guardians receive the National Child Benefit (NCB) supplement. The CLB is a federally-funded education savings grant, offering a one-time initial $500 contribution from the Government of Canada when an RESP is opened. A child may also qualify for an additional $100 every year until he/she turns 15 years old, up to a maximum of $2,000.
You do not have to contribute to an RESP to receive a CLB, you just need to open an RESP and apply for it.
Ask us about RESPs and the available government grants.