Some of the families that we have been speaking to who are looking to set up an RDSP in time for the March 2, 2009 deadline to receive the 2008 Grant and Bond have been told some things that are misleading.

We have heard that someone has been telling families and individuals “You can put your money with us, we’ll designate it as RDSP and WHEN we are confirmed as an approved financial institution your plan will be opened retroactively and you will receive the grant and bond as if you had contributed when you made the deposit.”

Please be wary of setting an RDSP up with any financial institution that puts forward this promise.  It is our understanding that in order to set up an RDSP before this deadline and receive the 2008 Grant and Bond, you must set up an RDSP with a financial institution that has an agreement with the Federal Government to administer the RDSP.  Currently, the only FI’s who have this agreement in place are FMOQ (small Quebec FI), Bank of Montreal, and the Royal Bank of Canada.  If a financial institution is telling you the above, please be wary.

They may say that it is okay because there is a grandfather clause for financial institutions to apply for the Grant and Bond on behalf of their clients until 2010.  This is true, BUT it is our understanding that they still must be an approved RDSP issuer when they receive contributions from someone into an RDSP, otherwise it will not count as contributions before March 2, 2009.  

There may be a few financial institutions coming on board before March 2, 2009, but make sure they are approved by the Federal Government as an approved issuer.  We will be updating this blog and everytime a new financial institutions is approved as an issuer.