Quick guide to the RDSP for people with disabilities and low income
Build long-term financial security with free RDSP government contributions
This guide breaks down exactly how the RDSP works, who qualifies, how to apply, and—most importantly—how to unlock free government money through the Canada Disability Savings Grant and Bond. Whether you’re a caregiver, parent, or person with a disability, this guide will help you take the first step toward long-term financial security.
What is an RDSP?
The Registered Disability Savings Plan (RDSP) is a long-term savings plan designed to help Canadians with disabilities save for the future. It’s registered with the Canada Revenue Agency (CRA), and the best part? You can get up to $90,000 in government contributions through grants and bonds—even if you don’t contribute a dollar yourself.
This plan was created to give people with disabilities and their families peace of mind, knowing there will be money available later in life.
Who can open an RDSP?
To open an RDSP, the beneficiary (the person the plan is for) must meet these criteria:
- Be a Canadian resident.
- Have a valid Social Insurance Number (SIN).
- Be under the age of 60 when the plan is opened.
- Be eligible for the Disability Tax Credit (DTC).
🔎 Tip: You must qualify for the Disability Tax Credit to be eligible. If you’re not sure, check your latest CRA Notice of Assessment or consult with your tax advisor.
The RDSP can be opened by the beneficiary themselves (if over 18 and legally able to manage finances), or by a parent or legal guardian.
Government incentives: Grants and bonds explained
The RDSP shines because of the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB). These are direct government contributions that don’t count as taxable income when received.
🔹 Canada Disability Savings Grant (CDSG)
| Family net income | Annual contribution | Government match | Maximum annual grant |
|---|---|---|---|
| Under $106,717 | First $500 | 300% | $1,500 |
| Next $1,000 | 200% | $2,000 | |
| Total | $1,500 | $3,500 |
Over a lifetime, the maximum grant is $70,000.
🔹 Canada Disability Savings Bond (CDSB)
| Family net income | Annual bond (no contribution required) |
|---|---|
| Under $34,863 | $1,000 |
| $34,863 – $53,359 | Partial bond |
| Over $53,359 | $0 |
The lifetime bond limit is $20,000, and no contributions are required to receive this money.
✅ Good to know: Even if you have zero savings to contribute, you can still get money from the government just by opening the plan and being eligible.
Case study: Sarah’s RDSP journey
Let’s take a look at a real-world example.
Sarah is a 30-year-old woman living with a permanent disability. She earns a modest income of $22,000 per year and qualifies for the Disability Tax Credit.
She opens an RDSP and contributes $500 per year. Here’s what happens:
| Year | Sarah’s contribution | CDSG (Gov. grant) | CDSB (Gov. bond) | Total gained that year |
|---|---|---|---|---|
| 1 | $500 | $1,500 | $1,000 | $3,000 |
| 2 | $500 | $1,500 | $1,000 | $3,000 |
| 3 | $500 | $1,500 | $1,000 | $3,000 |
In just 3 years, Sarah has deposited $1,500 of her own money, but her RDSP now holds $9,000. That’s the power of government incentives.
How to open an RDSP in 5 steps
Step 1: Confirm eligibility
Make sure you or the intended beneficiary qualifies for the Disability Tax Credit. You can apply through your doctor and submit Form T2201 to the CRA.
Step 2: Choose a financial institution
Not all banks offer RDSPs. The following institutions are some of the main providers in Canada:
- RBC
- BMO
- TD
- Scotiabank
- CIBC
- Desjardins
Choose one that offers low-fee or flexible investment options.
Step 3: Gather your documents
- Social Insurance Number
- Proof of Disability Tax Credit eligibility
- ID and proof of address
Step 4: Open and register the RDSP
Work with your chosen bank or credit union to officially open the plan. They will register it with the CRA.
Step 5: Apply for grants and bonds
Once the RDSP is active, your financial institution will apply for the CDSG and CDSB on your behalf each year, based on your family income.
📅 Note: You can receive grants and bonds up to the end of the year you turn 49. Don’t wait too long to apply.
What happens when you withdraw from the RDSP?
Funds must remain in the RDSP for at least 10 years from the time a grant or bond is deposited to avoid repayment. Early withdrawals may require you to repay some or all of the government contributions.
At age 60, withdrawals can begin without penalties, and the money is taxed only partially—as the contributions were non-taxable, only the growth and grants are.
Is the RDSP right for you?
The RDSP is especially powerful if:
- You or your loved one has a long-term disability.
- You have low or modest income.
- You want to save for the future without losing disability benefits.
Importantly, RDSP funds do not affect eligibility for most federal and provincial disability support programs, including the Ontario Disability Support Program (ODSP) and the Canada Workers Benefit (CWB).
A financial lifeline for the future
The Registered Disability Savings Plan is one of Canada’s most generous financial programs for people with disabilities. It offers a rare opportunity to grow your savings risk-free, even if you’re on a low income. With up to $90,000 in free government contributions, the RDSP isn’t just a savings account—it’s a lifeline for long-term financial independence.
If you or someone you know is eligible, don’t wait. Start the process today, and secure your future with the support that’s already available to you.