Saving for education

Canada Learning Bond (CLB)

What it is:

  • An initial $500 Government of Canada grant with an extra $100 grant available each year that the beneficiaries are eligible, until they turn 15.
Father and daughter playing indoors

Who can use it:

  • Children born after December 31, 2003, whose parent or guardian receives the National Child Benefit Supplement (NCBS).
Student at a computer in classroom

Main advantages:

  • Money invested grows tax deferred.
  • The investment growth and grant amounts that are part of the withdrawal are taxed as income to the student.
  • Over time, the CLB could add up to an additional $2,000 in grant money (plus growth).
  • There is a wide range of investment options.
Students in a lecture hall

Potential limitations:

  • An RESP account must be opened. Some financial institutions charge fees. The first CLB payment includes an additional $25 to help cover the costs of opening the account.
Students and teacher in the school hallway

Special considerations:

  • Putting money in the RESP will result in an additional 40 cents for every dollar you save, up to the first $500. This grant is known as the Canada Education Savings Grant.
  • A CLB is paid by Human Resources and Social Development Canada (HRSDC) directly into the RESP of a child who is a named beneficiary and whose parent or guardian is eligible to receive the National Child Benefit Supplement (NCBS).