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The Basic CESG is equal to 20% on the first $2,500 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 will 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)
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- A minimum of $2,000 of RESP contributions must have been made, and not withdrawn, in respect of the beneficiary before the year in which the beneficiary turned 16 years of age;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- A minimum of $100 of annual RESP contributions must have been made, and not withdrawn, in respect of the beneficiary in any of the four years before the year in which the beneficiary turned 16 years of age.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, all children who were Canadian residents began to accumulate "Basic CESG grant room" at a rate of $400 per year. In 2007 or later, $500 is added annually to the grant room for each eligible child in 2007. For children born after 2007, grant room of $500 will begin to accumulate in the year of their birth. Basic CESG room can be carried forward up to December 31st of the year the beneficiary turns 17 years of age.
RESP Maximum Contribution Amount
The maximum lifetime contribution allowed per beneficiary is $50,000. CESG is not included in calculating your lifetime contribution.
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 when making a qualified Education Assistance Payment (EAP) withdrawal for use 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.
Additional information about the Basic CESG is available on the Government of Canada website.
To find out more
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