How to Open an RESP in Canada (2026): Step-by-Step, Plus How to Get the Full $7,200 Grant
To open an RESP you need your SIN and your child's SIN. Apply for the child's SIN first. You can open an RESP at a bank, an online broker or a group plan provider. The Canada Education Savings Grant (CESG) adds 20% of the first $2,500 you contribute each year ($500/year), up to $7,200 per child. Unused grant room carries forward, but you can collect at most $1,000 of CESG in a year. Lower-income families can also get the Canada Learning Bond (up to $2,000) with no contribution required. The lifetime contribution limit is $50,000 per child.
An RESP (Registered Education Savings Plan) is the most generous government match most Canadian parents will ever get. For every $2,500 you contribute in a year, the federal government adds $500. Lower-income families can get more, and some provinces add their own grants.
Yet a lot of families leave grant money unclaimed because they start late or never apply. Here's how to open one properly.
The free money, in one table
| Program | What you get | Limit |
|---|---|---|
| CESG (basic) | 20% of the first $2,500 contributed each year = $500/year | $7,200 lifetime per child |
| CESG catch-up | Unused room carries forward | Max $1,000 CESG per year |
| Additional CESG | Extra 10% or 20% on the first $500 each year, based on family income | Counts toward the $7,200 |
| Canada Learning Bond (CLB) | $500 first year + $100 each year to age 15, no contribution needed | $2,000 lifetime |
| BC (BCTESG) | One-time $1,200 grant (ages 6-8) | B.C. residents |
| Quebec (QESI) | Provincial top-up on contributions | $3,600 lifetime |
For 2026, the additional CESG and the CLB apply to families with 1-3 children and adjusted family net income up to $58,523. A 10% additional CESG applies between $58,523 and $117,045. The lifetime contribution limit is $50,000 per child.
Step 1: Get your child's SIN
You can't open an RESP or receive grants without the child's Social Insurance Number. For newborns, you can often apply through your province's birth-registration bundle. Otherwise, apply through Service Canada. Do this first. It's the most common delay.
Step 2: Choose the plan type
- Family plan: one account for several children related to you by blood or adoption. Growth and grants can be shared among them, within limits. Best for siblings.
- Individual plan: one beneficiary, who can be anyone, including a non-relative or yourself.
- Group plan (scholarship trust): pooled by age cohort and run by a group plan dealer. Often comes with enrolment fees and strict contribution schedules. Read the fine print carefully.
For most parents with more than one child, a self-directed family RESP is the most flexible option.
Step 3: Choose where to open it
| Option | Good for | Watch for |
|---|---|---|
| Online broker (self-directed) | Lowest cost, full control over investments | Some charge RESP account fees on small balances. Scotia iTRADE, for example, charges $25/year below a threshold. |
| Robo-advisor | Hands-off, automatic rebalancing | Management fee on top of fund fees |
| Your bank branch | Convenience | Often steered into higher-fee mutual funds |
| Group plan provider | Forced discipline | Enrolment fees and penalties if you stop contributing |
Check whether the provider supports family plans, what investments you can hold, and whether it can apply for the CLB and provincial grants for you. Not every provider handles every grant.
Step 4: Open the account
You'll need:
- Your SIN and your child's SIN
- Your ID, address and banking details
- If you're applying for the additional CESG or CLB, the primary caregiver's SIN, since eligibility is based on the family that receives the Canada Child Benefit
The provider files the grant application. Ask them to confirm that CESG, additional CESG and CLB are all requested.
Step 5: Set up contributions to capture the full grant
The simplest system: $208.33 a month, which is $2,500 a year and captures the full $500 CESG.
If you're starting late, contribute $5,000 a year to collect $1,000 of CESG ($500 for this year plus $500 catch-up) until you're caught up.
To reach the $7,200 maximum, you need to have contributed $36,000 in total that attracts grants. The usual path is $2,500 a year for about 14 years, plus a final $1,000 contribution for the last $200.
Step 6: Invest it by age
RESP money has a fixed deadline: when your child starts school. A common approach:
- Young child (0-10): mostly equities, such as a single low-cost all-in-one ETF
- Ages 11-15: gradually add bonds
- Ages 16+: move money needed in the first two years of school into cash or short-term bonds
See how to pick an ETF for choosing low-cost funds.
Common mistakes
- Waiting. Every year you skip costs you compounding, and you can only catch up $500 of grant per year.
- Over-contributing. Contributions above $50,000 per child trigger a 1%-per-month penalty tax on the excess.
- Missing the age-15 rule. Contributions at 16 and 17 only earn grants if you contributed at least $2,000, or at least $100 in any four years, before the end of the year the child turned 15.
- Not claiming the CLB. Eligible families get up to $2,000 without contributing a dollar. Only an open RESP is needed.
- Paying high fees. A 2% mutual fund fee can eat a large share of the grant over 17 years.
When the child goes to school
Withdrawals come in two parts:
- Your contributions (PSE withdrawal): returned tax-free
- Grants plus growth (Educational Assistance Payments, EAPs): taxed in the student's hands, usually at a very low or zero rate
That's what makes the RESP so efficient: the growth is taxed at the student's low rate instead of yours.
Related
If you're saving for a home as well, the FHSA works the same way: open it early so room starts building. For a deeper lesson, see the free RESP, RDSP and non-registered accounts module in our Master Your Money course. For where to open a self-directed RESP, see our guides to Scotia iTRADE and the best online brokers in Canada.
Frequently asked questions
How much does the government add to an RESP?
The basic Canada Education Savings Grant is 20% of the first $2,500 you contribute each year, or $500, up to a lifetime maximum of $7,200 per child. Families with lower incomes can get an extra 10% or 20% on the first $500 contributed each year. Lower-income families may also qualify for the Canada Learning Bond: $500 in the first eligible year plus $100 a year, up to $2,000, with no contribution needed.
What if I didn't contribute to an RESP in past years?
Unused basic CESG room carries forward. Each year you can contribute up to $5,000 and receive up to $1,000 in grants, $500 for the current year plus $500 of catch-up. Catching up from a late start usually takes several years at that pace, so starting early matters.
Should I choose an individual or family RESP?
A family plan lets you hold several children who are related to you by blood or adoption in one account and share the investment growth between them, which helps if one child doesn't pursue post-secondary education. An individual plan can have any beneficiary, including an unrelated child or yourself. For siblings, a family plan is usually simpler.
What happens to an RESP if my child doesn't go to post-secondary school?
You can transfer the money to a sibling in a family plan, withdraw your own contributions tax-free, or in some cases move investment growth into your RRSP if you have room and meet the conditions. Government grants must be returned. Investment growth withdrawn as cash is taxed at your rate plus an extra 20%, which is why the RRSP rollover option matters.
Where is the best place to open an RESP?
For low costs and full control, a self-directed RESP at an online broker, holding a low-fee ETF, is hard to beat. Some brokers and robo-advisors run family RESPs with no account fee. Group scholarship plans often have enrolment fees and strict rules, so read the terms carefully before signing.
When can I contribute to an RESP and still get the grant?
CESG is available until the end of the calendar year the child turns 17. There are special rules at ages 16 and 17: the child only qualifies then if at least $2,000 was contributed, or at least $100 was contributed in any four years, before the end of the year they turned 15.
Primary sources
Data & disclaimer: This article is for educational purposes only and is not financial or investment advice. Figures reflect data available as of Sep 18, 2026, and conditions change — always confirm current pricing, rates and rules with the provider before you act. Written by Elizabeta Dimoska. See our editorial standards and disclosure.
Comments