Canada Learning Bond Eligibility and TD RESP

in GIC, Registered Education Savings Plan

Another thing I learned when I went in for my yearly RESP Fun and Games was that to figure out Canada Learning Bond eligibility for my son, I had to open yet another RESP account (with TD) and that account had to be a GIC account.

First, go read about the Canada Learning Bond over at the HDSRC web site, to find out if you are actually eligible to apply for this grant. My son is born late enough to qualify and I receive the Family Allowance cheque (for now), and those are the two major criteria to be able to even apply for the grant.

Since I was at my TD branch attempting to extricate money from existing RESPs I decided to ask about the CLB for my son. Yes the rep had heard about this program, however, at TD there is yet another interesting wrinkle added to the equation (interesting because it is a wrinkle that causes me to get wrinkles, sort of recursive), I must open a separate RESP account and the account is a GIC only account.

TD’s view of the Canada Learning Bond is explained here, however, to get the CLB I had to open a separate Family Term RESP account, which only allows me to purchase GICs to get the CLB. Now I don’t really have a big issue with this (except that another 2 trees died printing out various forms to create the account), but I just have to wonder out loud why?

Was this a clever ploy by the rep I was dealing with it to have me open yet another account (and possibly get her a bonus)? Maybe, I don’t think so, this sounds hair brained enough to be a bank policy, but if anyone knows of a possible explanation as to why this was so, I would love to hear it.

Epilogue: No, the account showed my son had no Canada Learning Bond Eligibility, and now I have a GIC RESP account with zero balance.


  • Del Anderson February 3, 2013, 6:10 PM

    Governments (Federal, Quebec, Alberta and soon Saskatchewan) have grant programs to assist lower income families with their RESP. TD Canada Trust has restrictions regarding these grants (punitive IMO), that are far more restrictive than the other Banks. TD Canada Trust mandates these grant moneys be placed into a TERM GIC account, whereas the other banks allow the RESP Subscriber to choose which investments (Mutual Funds, Bonds, etc) they wish to place these funds into.
    If you want your RESP invested in mutual funds, if you want to receive Government Grants that are available (beyond the CESG), and, do not want a RESP account plus a Term GIC account (yes, two accounts!), look at either Royal Bank of Canada, Scotia Bank, CIBC or Bank of Montreal and not TD Canada Trust!
    TD Canada Trust’s policy dictates that if you wish to receive Government Grants such as the a-CESG, the Canadian Learning Bond, Quebec Education Savings Incentive, or the Alberta Centennial Education Savings Grant, they will only process the applications if the funds from these Grants are placed into a Term GIC. And, these funds cannot ever be rolled into your mutual fund RESP or transferred.

    • bigcajunman February 4, 2013, 7:08 AM

      Yup, I fell for that one, unfortunately, and I note I haven’t even received those grants either, so now I have an empty GIC account… sigh.


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