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A great way to start saving for your child or grandchild's education.
What is an RESP?
A Registered Education Savings Plan (RESP) is a great way for parents and family to save for a child's post-secondary education. The investments held grow tax-free, and there are government grants that can help grow your savings.
Make the most of your RESP
- Start Early - The sooner you contribute the better. Starting early means saving more.
- Easy Contributions - Set up an automatic transfer, making it easier to contribute up to the maximum of $50,000 per child.
- Government grants - Take advantage of up to $7,200 in government grants that are available.
- Tax-Deferred Growth – Earnings in your RESP are tax-sheltered until withdrawn
As an incentive, the government provides a Canada Education Savings Grant (CESG) that matches 20% of your RESP contributions (up to $500 a year) with a lifetime grant limit per child of $7,200. Any unused CESG grants can be carried forward and used for future RESP contributions, provided the beneficiary is still eligible to receive them.
As soon as your children begin using their RESP funds to go to school, the income becomes taxable in the child’s hands. In most cases, since the student has very little income, any income earned within the RESP is taxed at the student's lesser marginal rate.
How can we help?
Frequently Asked Questions
Parents, grandparents, aunts and uncles, other family members and anyone else who wants to contribute to a child's education can participate, subject to the annual and lifetime limits.
We offer a variety of investment options that can help you maximize your contributions. Ask an advisor to recommend an investment strategy.
Grant contribution room can be carried forward to the following year.
If your child decides not to attend post-secondary education, you have the following options:
• You may be able to change the beneficiary
• You can transfer up to $50,000 of the RESP funds to your RRSP if you have the contribution room for that year, including any room you have carried forward.
• If you don’t have the RRSP contribution room, you will have to pay tax on the RESP growth and there will be a government clawback on the grant.
Mutual funds are offered through Qtrade Asset Management (a tradename of Credential Asset Management Inc). Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated. NEI Investments is a registered trademark of Northwest & Ethical Investments L.P. (“NEI LP”). Northwest & Ethical Investments Inc. is the general partner of NEI LP and a wholly-owned subsidiary of Aviso Wealth Inc. (“Aviso”). Aviso is the sole limited partner of the NEI LP. Aviso is a wholly-owned subsidiary of Aviso Wealth LP, which in turn is owned 50% by Desjardins Financial Holding Inc. and 50% by a limited partnership owned by the five Provincial Credit Union Centrals and the CUMIS Group Limited. Credential Securities, Credential Asset Management Inc. and Northwest & Ethical Investments L.P. are all wholly owned subsidiaries of Aviso Wealth Inc.
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