The Bank of Montreal

The Registerd Disability Savings Plan:
Benefits of an RDSP

An RDSP combines the benefits of tax-deferred investing with eligibility for government funding to provide an attractive way to build a secure financial future for a disabled person.

By maximizing government subsidies in an RDSP and earning solid investment returns, compounding investment returns can help accumulate significant savings for the beneficiary. This can help overcome the possibility that a disabled person will have lower earnings potential and face considerable medical expenses during his or her lifetime.

Tax Deferred Growth

Tax deferral alone is a good reason to open an RDSP. Because investment returns are untaxed as long as they remain in the plan, growth potential far exceeds that of taxable investments outside an RDSP. This should result in more money for the beneficiary when it’s time to draw on the proceeds.

Government Grants

Government grants associated with RDSPs further enhance the attractiveness of this type of plan. RDSP beneficiaries are eligible for the federal Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB).

The government provides CDSG benefits based on the adult beneficiary’s net income and the amount of annual RDSP contributions. The lifetime maximum benefit is $70,000. Beneficiaries or families with a net family income lower than $37,885 are also eligible for the Canada Disability Savings Bond. RDSP contributions are not required to receive CDSB benefits.


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