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Definition: Canada Education Savings Grant
Canada Education Savings Grant is the grant or allowance given by the Government of Canada in the form of additional money to the child’s savings plan registered under Registered Education Savings Plan (RESP). This program of Government of Canada is administered through Human Resources and Skill Development Canada. This program has been started to assist Canadian children in their higher education.
Under this scheme, Government of Canada provides additional 20% on every dollar till $2500 that is saved first under RESP, for every child each year
2) ADDITIONAL CANADA EDUCATION SAVINGS GRANT
An extra 10% to 20% per dollar can be added for the first $500 depending upon the total income of the family to the child savings plan registered under RESP.
Only those children who are Canadian residents and are under the age of seventeen are eligible to take the benefits of this scheme. The maximum amount that a child can get through this scheme is $7,200. The money obtained can be utilized for full time or part time courses.
However for children who are of age 16 or 17, and wish to apply for the grant should fulfill either of the following two eligibility criteria:
a) There should be a minimum contribution of $2000 to all the child RESP’s before the end of the year in which the child turns 15, or,
b) There should be a minimum contribution of $200 in at least any of the four years before which the child turns 15
This shows that in order to be eligible for CESP, one should start investing in child saving program registered under RESP, before child turns 15.
Moreover, a request has to be made for the grant. Before opening an RESP, one needs to obtain a Social Insurance Number (SIN) for themselves as well as for the child.