Brochure - Canada Learning Bond
To order a free copy of this brochure, visit a Service Canada Centre near you or send a fax to Publications Services (819 953-7260).
Get $500 for Your Child's Education After High School
LC_010-10-09
The Canada Learning Bond (CLB) is a $500 grant from the Government of Canada to help you start saving early for your child's education after high school.
This money can be used to pay for full-time or part-time studies in an apprenticeship program, trade school, CEGEP, college or university.
Who can get the Canada Learning Bond?
Your child can get the $500 Canada Learning Bond plus an additional $100 per year up to age 15:
- If your child was born after December 31, 2003 and
and
If you get the National Child Benefit Supplement as part of the Canada Child Tax Benefit (commonly known as "family allowance").
Your child may get an extra $100 per year up to age 15, as long as you continue to receive the National Child Benefit Supplement.
Over time, the Canada Learning Bond could add up to $2,000 in grant money (plus interest) for your child's education after high school.
How do I get the Canada Learning Bond?
In 2 easy steps:
- Get a Social Insurance Number for your child — even a baby can have one! There is no fee. However, certain documents, such as a birth certificate or Permanent Resident Card, are required. For more information, call 1 800 O-Canada (1-800-622-6232) or visit a Service Canada Centre near you.
- Open a Registered Education Savings Plan (RESP). You can open an RESP account through a financial institution such as a bank or credit union or through a certified financial planner or group plan dealer.
The Canada Learning Bond will be deposited directly into your child's RESP.
What is a Registered Education Savings Plan (RESP)?
An RESP is a special savings account registered with the Government of Canada to help you or your family or friends save for your child's education after high school.
The money in the RESP will be invested so it can grow and earn interest.
You will not be taxed on the interest, and your child can usually withdraw the money tax-free.
Is there a fee to open an RESP?
At some financial institutions, you can open an RESP account for free; others have fees.
The first Canada Learning Bond payment includes an additional $25 to help cover any costs of opening the RESP account.
Be sure to shop around to find an RESP provider that best meets your needs and ask them about secure investment options.
Do I have to put money into the RESP to get the Learning Bond?
No. Even if you don't put any of your own money into the RESP right now, the Government of Canada will still deposit the $500 Canada Learning Bond into the RESP account you opened.
You, as a parent, as well as your family or friends, can also put money in your child's RESP. You can contribute as little or as much as you want, whenever you want.
Any money that you or your family or friends put into the RESP is also eligible for the Canada Education Savings Grant. The Government—through the Canada Education Savings Grant—could add up to $200 on the first $500 you save annually, and up to $400 on the next $2000 saved.
Even savings of $5 a week can make a difference, especially when the Canada Education Savings Grant is added. That money will also earn interest over time.
The sooner you start to save, the more your savings will grow.
Will I be taxed on the money the Government of Canada puts into my child's RESP?
No. You will not be taxed on money that the Government of Canada adds to your child's RESP.
Will the grant money affect other Government of Canada benefits I receive?
No. The Canada Learning Bond and the Canada Education Savings Grant will not affect your other Government of Canada benefits.
What happens if my child doesn't continue education after high school?
The RESP can stay open for up to 36 years. If your child does not continue his or her education right after high school, the money can be used if your child returns to school later.
If the money is not used 36 years after the RESP is opened, the amount you saved goes back to you and the Canada Education Savings Grant may be used for a brother or sister's education. If not, it will be returned to the Government of Canada. The Canada Learning Bond is returned to the Government of Canada.
Your money can also be withdrawn at any time. Ask your RESP provider for details.
How do I get help or more information?
- Call toll-free at 1 800 O-Canada (1-800-622-6232) for more information and brochures on the Canada Education Savings Grant and RESP.
- If you use a TTY, call 1-800-926-9105.
- Visit a Service Canada Centre near you.
- For a list of RESP providers, to view this publication in other languages or for more information, visit CanLearn.ca.
You can order this publication by contacting:
Publications Services
Human Resources and Skills
Development Canada
140 Promenade du Portage
Phase IV, 12th Floor
Gatineau, Quebec
K1A 0J9
Fax: 819-953-7260
Online: http://www.hrsdc.gc.ca/publications
This document is available on demand in alternative formats (Large Print, Braille, Audio Cassette, Audio CD, e-Text Diskette, e-Text CD, or DAISY), by contacting 1 800 O-Canada (1-800-622-6232). If you have a hearing or speech impairment and use a teletypewriter (TTY), call 1-800-926-9105.
© Her Majesty the Queen in Right of Canada, 2009
Paper
Cat. No.: HS28-19/2009
ISBN: 978-0-662-06865-5
PDF
Cat. No.: HS28-19/2009E-PDF
ISBN: 978-1-100-13686-8
Printed in Canada
