We are proud to also offer a Canada Learning Bond (“CLB”) only Self-Initiated Option Plan as a means of enabling lower income families to open an Education Savings Plan in a cost efficient way that does not require contributions of the subscriber’s own money. Canada Learning Bond recipients could receive up to $2,000 towards their RESP as set out below1 :
$25 to help cover the cost of opening the RESP;
$500 to add to the RESP now, to help you start saving early; and
an extra $100 each year until the calendar year your beneficiary turns 15.
Who is eligible?
Generally speaking, Canadian families whose net income is less than $44,701 (2015 income threshold) may be eligible to receive the Canada Learning Bond if the child is born after December 31, 20032. The beneficiary and the subscriber(s) will each need to provide their Social Insurance Number (SIN) to us at the time the Plan is opened.
How does it work?
You must qualify to receive the Canada Learning Bond in order to open a Canada Learning bond Only Self-Initiated Option Plan. To open a CET Canada Learning Bond Only Self-Initiated Plan, you need to meet with one of our Dealing Representatives and complete the documents that are required to open the Plan, including the process to apply for the Canada Learning Bond, which requires SINs for the beneficiary and all subscribers. You will not be required or asked to contribute any of your own money. Once your application is approved, the Canada Learning Bond will be deposited directly into your child’s RESP every year that he or she is eligible (Once you have applied, it is renewed automatically each year). The Bond is usually paid in the month of August.
CEFI waives both the Sales Charge and the Annual Depository fee for subscribers who open a Canada Learning Bond only Self-Initiated Option Plan3. With the Canada Learning Bond only Self-Initiated Option Plan, there is no requirement to meet the $300 investment minimum as the subscriber is not contributing his/her own funds.
1 Please see here for more information about the Canada Learning Bond.
2 Please see here for more information about eligibility to receive the Canada Learning Bond.
3 Please refer to the Plan’s prospectus for full information on all fees that apply. Fees and restrictions apply if the subscriber contributes his/her own funds and the Plan no longer consists of Canada Learning Bond only. As long as the Self-Initiated Option Plan consists solely and exclusively of the Canada Learning Bond, there is no requirement to meet the $300 investment minimum.