Personal Finance

RESP Questions...CLB and other grants

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  • Feb 4th, 2015 1:16 pm
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[OP]
Member
Sep 8, 2010
258 posts
17 upvotes
Chambly

RESP Questions...CLB and other grants

I am in Quebec and set up a family trust for my four children last week with TD. Until today I was not aware that there was a 3rd grant (CLB) for lower income families. So there is CESG which is 20% up to $500, QESI (Quebec one) 10% up to $250 + $50 bonus for low income and CLB $500 for first year and $100/yr for every other year. Now I called my guy at TD and he told me they do not administer the CLB, only the CESG and QESI. This adds up to a lot since it's not just one kid. If I were to switch to another provider, is it a complicated procedure? Would I just setup a new one or have to transfer the existing one. Would there be fees to closing it at TD? No money has been deposited yet.

Thanks
7 replies
Sr. Member
Apr 27, 2008
990 posts
326 upvotes
Edmonton
mcu wrote:
Feb 3rd, 2015 6:18 pm
I am in Quebec and set up a family trust for my four children last week with TD. Until today I was not aware that there was a 3rd grant (CLB) for lower income families. So there is CESG which is 20% up to $500, QESI (Quebec one) 10% up to $250 + $50 bonus for low income and CLB $500 for first year and $100/yr for every other year. Now I called my guy at TD and he told me they do not administer the CLB, only the CESG and QESI. This adds up to a lot since it's not just one kid. If I were to switch to another provider, is it a complicated procedure? Would I just setup a new one or have to transfer the existing one. Would there be fees to closing it at TD? No money has been deposited yet.

Thanks
We have our RESP through TD for our two kids and they both got the CLB for the first year. I don't believe the $100 is for every year after. It's at certain ages if I recall correctly. I'm not sure when the TD guy said they don't administer it whether they mean they don't directly handle it, or whether TD family RESP accounts can't get them which sounds bizarre. Ultimately it's the reps job to put through the paperwork for the RESP when you add each child to the account, and check/apply for anything you qualify for, and when you get your year end statement you should see any government grants added to the account. As for the low income bonus, the family income has to be quite low to be eligible, and I think you might have to show some sort of proof or fill out a form to allow access to your cra information or the government to verify you qualify each time you contribute. Anyways, I'd double check with another rep or branch. Your "guy" might be confused or new.
Deal Fanatic
Jul 1, 2007
8103 posts
956 upvotes
TD only administers the CLB and additional CESG through their TDCT Term RESP. Since you got the QESI grant, it sounds like you have a TDW RESP (I think only that one administers QESI). All you need to do is go to the branch and open a separate RESP to get the CLB and A-CESG, put your first $500 contribution into it each year, rest into the other RESP. Unfortunately the term RESP can only invest in GICs.

Other companies DO offer all grants in one plan. Thing is at the banks they offer triplicate of each plan (brokerage, mutual fund, bank) and don't bother setting up all three for every grant out there.
Money Smarts Blog wrote:
Nov 29th, 2010 11:18 am
I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
[OP]
Member
Sep 8, 2010
258 posts
17 upvotes
Chambly
So basically keep it as is and then open another resp account at the TD branch for the CLB?
Guess double the fees?

What places that you know can have all in one? If they are non banks, then what is the advantage/disadvantage of having them there?

Thanks
Deal Fanatic
Jul 1, 2007
8103 posts
956 upvotes
No fees for the term RESP.

Any non-bank affiliated brokerage (whether they be discount brokerage like Questrade or full service) that offers RESPs usually administers all grants.

Advantages/disadvantages of non banks all depend on if their platform meets your needs or if the advisor (if applicable) is capable and competent. Lot's of choices out there.
Money Smarts Blog wrote:
Nov 29th, 2010 11:18 am
I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Deal Expert
User avatar
Nov 15, 2004
16920 posts
2644 upvotes
Toronto
The CLB isn't linked to contributions like the CESG is, so you can just open an RESP at another company which administers it, never contribute anything to it, and apply for the CLB there while keeping up your TD RESP with nothing changed (however this way you will lose out on the Additional CESG of $50 or $100 per year, depending on your income). The list of companies and the grants they administer is here: http://www.esdc.gc.ca/en/student_loans/ ... _list.page

If you wanted to transfer your existing RESP away from TD it's a pretty easy process, but TD will most likely charge you fees for doing so. You may want to do this, as you'll also qualify for the Additional CESG (which TD Asset Management and TD Securities don't offer, but TD Bank does) if you qualify for the CLB.
Could HAVE, not could OF. What does 'could of' even mean?
Member
Oct 5, 2009
469 posts
40 upvotes
Calgary
Not related to CLB, but don't go to Questrade for RESP in Quebec!

I still did not get my QESI from 2013 contributions... nor 2014 obviously.

I am switching my RESP to TD (leaving the rest at Questrade)
[OP]
Member
Sep 8, 2010
258 posts
17 upvotes
Chambly
Thalo wrote:
Feb 3rd, 2015 9:38 pm
TD only administers the CLB and additional CESG through their TDCT Term RESP. Since you got the QESI grant, it sounds like you have a TDW RESP (I think only that one administers QESI). All you need to do is go to the branch and open a separate RESP to get the CLB and A-CESG, put your first $500 contribution into it each year, rest into the other RESP. Unfortunately the term RESP can only invest in GICs.

Other companies DO offer all grants in one plan. Thing is at the banks they offer triplicate of each plan (brokerage, mutual fund, bank) and don't bother setting up all three for every grant out there.
Thanks for the info...Would you keep them separate (keep the TDW RESP and addon the TDCT RESP) or go with a bank like BMO, RBC, etc that will do all together and allow me to invest in other products besides GIC?

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