The basics
Tax-free growth: The money you contribute into an RESP (Registered Education Savings Plan) grows tax-free until withdrawn.

Contribution limit: There are no annual limits, but there is a contribution maximum of $50,000 per beneficiary for the duration of the RESP.

Canada Education Savings Grant maximum: Each beneficiary can get a lifetime maximum of CESG payments of $7,200.

Household income and CESG payments
Regardless of family income, HRSDC pays a basic CESG of 20% of annual contributions made to all eligible RESPs for a qualifying beneficiary to a maximum CESG of $500 in respect of each beneficiary ($1,000 in CESG if there is unused grant room from a previous year). There is a lifetime limit of $7,200 per beneficiary.

HRSDC may also pay an additional CESG amount for each qualifying beneficiary depending on the family’s net income.

For 2010, the CESG rate on the first $500 contributed to an RESP for a beneficiary who is a child under 18 years of age is:
• 40% (extra 20% on the first $500), if the child’s family has qualifying net income for the year of $40,970 or less; or
• 30% (extra 10% on the first $500), if the child’s family has qualifying net income for the year that is more than $40,970 but is less than $81,941.

For more information, download the Canada Revenue Service RESP fact sheet.