Up to $7200 in Government Grants for Opening an RESP
There is no better time that right now to start building your child’s college fund as the Canadian Government will potentially give each child up to $7200 in grants / bonds for their RESP. A Registered Education Savings Plan (RESP) is a very safe way to make a high return, and your child / grandchild can use the money for any type of accredited post secondary education. This includes college, university, trade school, and various certifications.
Zero Contribution Required
Even if you don't have any money to deposit into your child’s RESP today, you can still open up the account, and qualify for up to $3200 in grants.
BC Training and Education Savings GrantParents can get $1200 for their child’s RESP so long as that child was born after 2005. Children are to apply for this grant between the ages of 6-9.
Basic Canada Education Savings GrantThe government is also going to match 20% of your annual contributions, up to $2500 per year. That equates to $500 a year extra in your child’s future funding. For families under certain income thresholds, increased matching may be available. The chart below shows current guides.
Canada Learning BondThis is meant to help modest income families. The parent or guardian must be eligible to receive the National Child Benefit (NCB) in order to receive the Canada Learning Bond. This bond offers an initial $500 government contribution when an RESP is opened, and the child may also qualify for an additional $100 annually until the age of 15, maxing out at a potential $2000.
At GFCU, we can handle your accounts, and ensure that you are getting all the grants / bonds that you qualify for. All you need to do is open the account. The money is this RESP account grows tax free.
* The maximum of $3200 is only applicable to those making less than $44,701 per year. ** Last year eligible for matching is when the recipient is age 17, and the government will match your first $2000 contributed in any given year, government will not contribute more than a total of $7,200. *** Children must be born after 2006 to qualify for the BC Training and Education Savings grant, and can only apply between the ages of 6-9.