This is a tax-sheltered education savings account geared toward preparing for your child's post-secondary education. According to CanLearn, some RESP providers may charge service fees. Before you open an RESP, inquire about any applicable fees, limits, penalties or requirements to make regular payments. You can open individual or family RESPs through banks, credit unions, mutual fund companies, investment dealers and group-plan dealers.
CanLearn states that when you apply for the CESG, the federal government can directly deposit up to $7,200 into your RESP. You and your child must have social insurance numbers. Open an RESP account and make a deposit. Your provider applies for a CESG on your behalf. You should also apply to the Canada Revenue Agency for the Child Tax Benefit (family allowance or baby bonus); depending on your income, your CESG could be higher.
The same requirements for CESG also apply for CLB. Your child is eligible for the $500 CLB plus an extra $100 per year up to age 15 if, as CanLearn states, your child is born after December 31, 2003 and an RESP has been opened on their behalf. You can also get the National Child Benefit Supplement as part of the Canada Child Tax Benefits (family allowance or baby bonus) offered through Revenue Canada.