The RESP is the only account where the government hands you a guaranteed 20% return the moment you contribute. That's the Canada Education Savings Grant (CESG), and skipping it is leaving free money for your child's education on the table.
How the CESG works
For every dollar you put in an RESP, the government adds 20%, up to $500 per child per year. To capture the full $500, you contribute $2,500 in a year. So $2,500 of your money instantly becomes $3,000 — before a single dollar of investment growth.
Guaranteed 20%
The limits to know
- ›$500/year basic CESG per child (20% of $2,500).
- ›$7,200 lifetime CESG maximum per child.
- ›No annual RESP contribution limit, but a $50,000 lifetime contribution limit per child.
- ›Lower-income families may qualify for additional CESG and the Canada Learning Bond on top.
Catching up on missed years
Started late? You can carry forward unused grant room, but only one extra year at a time. That means you can receive up to $1,000 of CESG in a single year by contributing $5,000 ($2,500 for the current year + $2,500 catch-up). If you've missed several years, spread the catch-up across multiple years to avoid losing grant.
Why starting early wins twice
Start when your child is born and you can comfortably hit the $7,200 lifetime grant with room to spare — and those early contributions get ~18 years to compound. Use the RESP calculator to see how grant plus growth builds a meaningful education fund.
Where to open an RESP
Wealthsimple offers self-directed RESPs with no account fees, and the CESG is applied automatically once your account and the child's SIN are registered. Set up an automatic $208/month contribution and you'll capture the full annual grant without thinking about it.
