InfoCapsule 1: Overview of the Canada Education Savings Program

From: Employment and Social Development Canada

On this page

• List of acronyms
• Preface
• Basic amount of Canada Education Savings Grant
• Additional amount of Canada Education Savings Grant
• Canada Learning Bond
• British Columbia Training and Education Savings Grant

Alternate format

A PDF version of the InfoCapsules for RESP providers is available on the index page.

Preface

The Canada Education Savings Program (CESP), within Employment and Social Development Canada (ESDC), administers 2 federal and 1 provincial education savings incentives. These incentives are linked to Registered Education Savings Plans (RESP), a vehicle to save for a child’s post secondary education.

Basic amount of Canada Education Savings Grant

• The Basic Canada Education Savings Grant (CESG) is available since 1998
• To receive the Basic CESG, the beneficiary must be a resident in Canada
• There is no specific birth year eligibility condition for the beneficiary
• The beneficiary is eligible for the Basic CESG until December 31 of the calendar year in which the beneficiary turns 17
• The Basic CESG amount is based on contributions
• The Basic CESG amount is not based on income
• The Basic CESG payment is 20% of the first $2,500 or less of annual contributions
• In a family plan, the Basic CESG is paid even if the beneficiaries are not siblings
• The lifetime CESG limit per beneficiary is $7,200 (combined with the Additional CESG)
• The Basic CESG amount limit included in an educational assistance payment (EAP) per beneficiary is $7,200 (combined with the Additional CESG)

Additional amount of Canada Education Savings Grant

• The Additional Canada Education Savings Grant (CESG) has been available since 2005
• To receive the Additional CESG, the beneficiary must be a resident in Canada
• There is no specific birth year eligibility condition for the beneficiary
• The beneficiary is eligible for the Additional CESG until December 31 of the calendar year in which the beneficiary turns 17
• The Additional CESG amount is based on contributions
• The Additional CESG amount is based on income
• The Additional CESG payment is 10% or 20% of the first $500 or less of annual contributions (20% if the child is in care of a public primary caregiver (PCG))
• In a family plan, the Additional CESG is only paid if all beneficiaries are siblings
• The lifetime CESG limit per beneficiary is $7,200 (combined with the Basic CESG)
• The Additional CESG amount limit included in an EAP per beneficiary is $7,200 (combined with the Basic CESG)

Canada Learning Bond

• The Canada Learning Bond (CLB) is available since 2004
• To receive the CLB the beneficiary must be a resident in Canada
• To receive the CLB the beneficiary must be born on or after January 1, 2004 and be under 21 years old
• The beneficiary is eligible for the CLB until the benefit year (July 1 to June 30) in which the beneficiary turns 15
• The CLB is not based on contributions
• The CLB is based on income
• The CLB amount is an initial amount of $500 plus $100 for each year of eligibility
• In a family plan, the CLB is only paid if all the beneficiaries are siblings
• The lifetime CLB limit per beneficiary is $2,000
• The CLB amount limit included in an EAP per beneficiary is $2,000

British Columbia Training and Education Savings Grant

• The British Columbia Training and Education Savings Grant (BCTESG) has been available since August 15, 2015
• To receive the BCTESG the beneficiary and the beneficiary’s custodial parent have to be resident in British Columbia at the time of the application
• To receive the BCTESG the beneficiary must be born on or after January 1, 2006
• The last day of eligibility for the BCTESG is based on the birth year of the beneficiary
• The BCTESG is not based on contributions
• The BCTESG is not based on income
• The BCTESG amount is a one-time payment of $1,200
• In a family plan, the BCTESG is only paid if all the beneficiaries are siblings
• The lifetime limit in BCTESG per beneficiary is $1,200
• There is no BCTESG amount limit in an EAP