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The Basic CESG is equal to 20% on the first $2,000 in annual contributions made to each beneficiary in your Registered Education Savings Plan (RESP) (with some restrictions for 16 and 17 year olds).
You may apply for the Basic CESG at your local Scotiabank branch. For each beneficiary that you set out as eligible on the application for grant, we will apply to the CESG program on your behalf after each contribution made to your Scotia RESP for that beneficiary. Any CESG received by Scotiabank wil be paid into your Scotia RESP and invested on a pro-rata basis according to your current asset mix.
What You Need
In order to be eligible to receive the Basic CESG, the following conditions must be met:
- The beneficiary must be a Canadian resident
- The beneficiary must have a valid Social Insurance Number (SIN)
To obtain a SIN, you may get an application from your local Scotiabank branch or Human Resources and Skills Development Canada office. You can also download the form in PDF format from the Human Resources and Skills Development Canada website.
Special Considerations
Both Individual and Family Plans qualify for the Basic CESG.
Eligibility
An eligible beneficiary qualifies to receive Basic CESG up to December 31 of the year in which they turn 17 years of age. A 16- or 17-year-old beneficiary qualifies for Basic CESG if one of the following two conditions have been met:
- A minimum of $2,000 of RESP contributions must have been made, and not withdrawn, in respect of the beneficiary before the year in which the beneficiary turned 16 years of age;
OR
- A minimum of $100 of annual RESP contributions must have been made, and not withdrawn, in respect of the beneficiary in any of the four years before the year in which the beneficiary turned 16 years of age.
Transferring the Basic CESG
Basic CESG can be transferred, provided the Income Tax Act (ITA) requirements have been met.
Timelines to Apply for Basic CESG
Starting January 1, 1998, CESG "grant room" may be carried forward to future years. If you were unable to make contributions to an RESP for one or more years, you can "catch up" in later years. In this case, the CESG will be paid on carried-forward contributions of up to $4,000 per year, translating into a maximum Basic CESG in any one year of $800.
RESP Maximum Contribution Amount
The maximum lifetime contribution allowed per beneficiary is $42,000. The annual maximum is $4,000. CESG is not included in calculating your annual and lifetime contributions.
Maximum CESG
Each beneficiary will be eligible to accumulate a maximum lifetime CESG (Basic and Additional) of $7,200.
Using the Basic CESG
The CESG and any income that the grant generates will be paid out to the beneficiary while he or she is enrolled at an eligible post-secondary institution. You can obtain a published list of approved education institutions and courses from your Provincial Ministry of Education or your local tax services office.
What if my child decides against post-secondary education?
Additional information about the Basic CESG is available on the Government of Canada website.
To find out more
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