RDSP in Canada —
Up to $90,000 in Government Grants & Bonds.
A Registered Disability Savings Plan (RDSP) is a registered Canadian account for people approved for the Disability Tax Credit. Ottawa adds up to $70,000 in Canada Disability Savings Grants and $20,000 in bonds — $90,000 in total — and contributions are capped at $200,000 lifetime. Grants and bonds withdrawn within 10 years must be repaid.
An RDSP in Canada is the most generous savings plan in the country for anyone who qualifies for the Disability Tax Credit. The government matches contributions up to 300% — as much as $70,000 in grants over a lifetime — and adds up to $20,000 in bonds even if the family never contributes a dollar. Savings grow tax-deferred to a $200,000 limit, and withdrawals don't claw back federal income-tested benefits. At Daya, the plan is held in a segregated fund contract from a Canadian life insurance carrier, with guarantees on top.
Figures reflect current federal program limits as of June 2026 and may change. Segregated fund guarantees (typically 75–100% of deposits) vary by carrier and contract. General information only — not financial, tax, or legal advice.
The Most Generous Plan in Canada.
No other registered account hands you this much free money. For a person approved for the Disability Tax Credit, the government does most of the heavy lifting — and the earlier a plan opens, the more years of grants and bonds it can collect. A child whose plan is opened young can reach the lifetime maximums long before the cutoffs arrive.
Open the plan
For anyone approved for the Disability Tax Credit, a Canadian resident with a SIN, who is under 60. A parent, guardian, or the person themselves can be the holder.
Contribute — or don't
Put in what you can, up to a $200,000 lifetime limit. Family and friends can contribute too. For the bond, no contribution is needed at all.
Government adds money
Ottawa tops it up with up to $70,000 in grants and $20,000 in bonds — often several dollars for every one you put in.
Grows tax-deferred
Everything compounds with no tax until the beneficiary draws an income later in life — and it never reduces their other benefits.
Grants, Bonds & Your Own Room.
Two government programs do the heavy lifting, on top of a generous lifetime contribution limit of your own. For most families the grant alone can more than double what they put in, and the bond arrives even for those who can't contribute at all — which is exactly why the RDSP is so transformative for lower-income households.
Grants (CDSG)
The Canada Disability Savings Grant matches 100%, 200%, or 300% of your contributions — up to $3,500 a year and $70,000 over a lifetime, based on family income.
Bonds (CDSB)
The Canada Disability Savings Bond pays up to $1,000 a year to lower-income beneficiaries — and you don't have to contribute a single dollar to receive it.
Your contribution limit
No annual cap — just a $200,000 lifetime limit. Family and friends can contribute too, with the holder's written consent.
Until it's withdrawn
Growth isn't taxed while it stays in the plan. On withdrawal only the grants, bonds, and earnings are taxable to the beneficiary — never your own contributions.
How the 300% Match Works.
The grant rate depends on family income. For most families, the first $1,500 you contribute each year pulls in the maximum $3,500.
How income is measured: grant and bond amounts are based on the beneficiary's adjusted family net income from two years earlier — and until the year they turn 19, on the family income used for the Canada Child Benefit. The $114,750 threshold shown is the 2025 figure and is indexed annually. A licensed Daya advisor confirms your exact grant and bond entitlement before you contribute, so you put in precisely the amount that pulls the maximum match — no more, no less. General information only — not financial, tax, or legal advice.
Five Rules That Trip People Up.
The RDSP is generous, but it has rules built to keep the money in place for the long term. These are the ones families ask about most.
The 10-year hold rule
Any grant or bond paid in the previous 10 years must be repaid if money is withdrawn early or the plan closes. The RDSP is designed for the long term — withdraw too soon and you can hand the government money back.
It depends on the Disability Tax Credit
The plan only works while the beneficiary is approved for the DTC. If approval lapses, contributions and grants stop and the plan may have to close — repaying grants and bonds from the last 10 years. Re-approval can restart it.
Watch the age cutoffs
Grants and bonds stop at the end of the year the beneficiary turns 49; contributions stop at 59; and lifelong payments must begin by the end of the year they turn 60.
Contributions aren't tax-deductible
Unlike an RRSP or FHSA, you don't get a deduction for contributing. The real payoff is the grants, bonds, and tax-deferred growth — which dwarf any deduction.
Don't leave free grant on the table
Unused grant and bond entitlements carry forward up to 10 years. A well-timed catch-up contribution can pull in years of missed grants at once — up to $10,500 of grant in a single year.
An RDSP, Held in a Segregated Fund Contract.
Maturity & death guarantees
Segregated fund contracts can guarantee 75–100% of deposits at maturity or on death, depending on the carrier and contract — a floor under a lifetime of saving.
Potential creditor protection
As an insurance contract with the right beneficiary structure, the plan may be shielded from creditors — a meaningful safeguard for a vulnerable beneficiary. Protection is not absolute.
Assuris protection
If the issuing insurer were to fail, Assuris protects a substantial portion of your contract — an extra backstop beneath the plan's long horizon.
Professional fund management
An RDSP often runs for decades. Segregated funds are professionally managed for that long horizon, balancing growth in the early years with stability closer to drawdown.
Independent carrier choice
Daya is an independent brokerage. We compare RDSP segregated fund contracts across multiple Canadian carriers and recommend the one that fits the family — not the one that pays us most.
Held truly separately
The word segregated is literal — the assets are held apart from the insurer's general funds, a structural safeguard for money meant to support someone for life.
Guarantee levels, reset options, and creditor protection vary by carrier, contract, and province, and depend on the plan and beneficiary structure. As an independent brokerage, Daya compares RDSP segregated fund contracts across Canadian carriers and coordinates the plan with any RRSP, TFSA, RESP, or estate plan so the whole picture works together for the beneficiary. Always review the Fund Facts and Information Folder before investing. General information only — not financial, tax, or legal advice.
What Families Use an RDSP For.
At its heart, the RDSP is about long-term security and peace of mind for a person with a disability — and the people who love them. The right plan quietly compounds in the background for years, then steps in as a dependable source of income when it's needed most.
A lifetime income
Decades of grants, bonds, and tax-deferred growth turn into recurring payments that support the beneficiary later in life.
The free government money
Up to $90,000 in grants and bonds combined — the single biggest reason to open a plan as early as possible.
Income that protects benefits
RDSP payments don't claw back federal income-tested benefits, and recurring payments up to $950/month aren't counted against social assistance.
A way for loved ones to help
With the holder's written consent, family and friends can contribute — grandparents, relatives, and friends can all add to the plan.
Estate & care planning
A structured, professionally managed plan that quietly supports a loved one for life — peace of mind that long outlasts the parents.
Rollovers from a parent's RRSP
A deceased parent's or grandparent's RRSP or RRIF can roll into a financially dependent child's RDSP — keeping family savings working for them.
An RDSP works best alongside the right benefits and plans — the Disability Tax Credit, provincial supports, and any RESP or TFSA. A licensed Daya advisor walks the whole family through it in plain language in English, Punjabi, Hindi, or Gujarati.
Eligibility — and Who Opens It.
The RDSP is built around one key approval: the Disability Tax Credit. Once that's in place, the rest is straightforward.
The beneficiary must…
Who can be the planholder?
- The person themselves, if they're an adult able to manage their finances
- A parent or guardian, if the beneficiary is under the age of majority
- A spouse, common-law partner, or legal representative, if an adult beneficiary needs help managing the plan
We explain every step in English, Punjabi, Hindi & Gujarati.
RDSP vs. RRSP, TFSA & RESP.
For a person who qualifies for the Disability Tax Credit, nothing else comes close. Here's how the RDSP stacks up — laid out honestly.
Swipe the table sideways to see every account →
| Feature | RDSP | RRSP | TFSA | RESP |
|---|---|---|---|---|
| Government grants & bonds | Up to $90,000 | None | None | Up to $9,200 |
| Contributions deductible? | No | Yes | No | No |
| Contribution limit | $200,000 lifetime | $33,810 / yr (2026) | $7,000 / yr (2026) | $50,000 lifetime |
| Tax on growth | Tax-deferred | Tax-deferred | Tax-free | Tax-deferred |
| Tax at withdrawal | Grants, bonds & growth taxed to beneficiary | Taxed as income | Tax-free | Growth & grants taxed to student |
| Affects income-tested benefits? | No | Yes | No | n/a |
| Main purpose | Lifetime security with a disability | Retirement | Any goal | A child's education |
| Key requirement | Disability Tax Credit | Earned income | Age of majority | A named child |
| Held as a Daya segregated fund | Yes — guarantees + protections | Yes | Yes | Yes |
| Best suited for | A person approved for the DTC | Retirement plus a tax refund | Flexible, tax-free saving | Saving for a child's education |
How to read this: Daya Insurance is an independent brokerage — we compare segregated fund products across multiple Canadian carriers and recommend the account and carrier that fit the family's goals, not the one that pays the most. For a person with the Disability Tax Credit, the RDSP's grants and bonds usually make it the first account to fund. Figures reflect current federal limits as of June 2026 and may change; segregated fund guarantees vary by carrier and contract. General information only — not financial, tax, or legal advice.
Ready to Open an RDSP?
Tell us a little about the beneficiary and an LLQP-licensed advisor will reach out — usually within one business hour — to confirm Disability Tax Credit status, estimate the grants and bonds available, and set the plan up inside the right segregated fund contract.
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RDSP FAQ.
The questions we hear most about the Registered Disability Savings Plan in Canada — answered plainly, with the current 2026 rules.