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A Registered Education Savings Plan (RESP) is a long-term savings plan designed to help families save for their children’s post-secondary education.
CIBC Investor’s Edge Jun. 19, 2024 7-minute read

Why should I open an RESP when my children are young?

Key terms when discussing RESPs



Primary caregiver

Individual plan

Family plan

Tax advantages

Investment options

Contribution limits and government grants

Government grants

Grant Amount Eligibility
Basic Canada Education Savings Grant (CESG)
  • 20% on the first $2,500 contributed to an RESP, yielding a grant of up to $500 in a year per beneficiary.
  • CESG entitlements can be carried forward, and up to $1,000 of CESGs per beneficiary may be received in a year.
  • There’s a lifetime maximum of $7,200 in CESGs per beneficiary.
  • Available until the end of the calendar year in which the beneficiary turns 17.
  • CESGs may be restricted for beneficiaries ages 16 and 17, if certain minimum RESP contributions were not previously made.
Additional CESG
  • 10% or 20% on the first $500 contributed to an RESP for a year, depending on family income.
  • Paid in addition to basic CESG.
Canada Learning Bond (CLB)
  • $500 when you open an RESP.
  • $100 in subsequent years for up to 15 years.
  • Available for beneficiaries who are born after 2003 and under 21 years old, when family income is below certain thresholds.

Withdrawing funds


Key takeaways

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