Save for your child’s education

What is an RESP?

A Registered Education Savings Plan (RESP) is a government-registered savings plan that helps you save for your child’s post-secondary education.

The money that you invest in an RESP grows tax-deferred, and the federal government helps contribute to your savings along the way in the form of education grants.

When your child enrols at a qualifying post-secondary institution and you are ready to withdraw the funds for educational purposes, the payments made using these funds are known as Educational Assistance Payments (EAPs).

Tax is applied to the investment income and government grants received when withdrawn from the RESP, not on the contributions you made using your own funds. These amounts are taxed in the hands of the student, and this usually means little or no tax will be paid, because students typically fall into the lowest tax bracket.

How do RESPs help my money grow?

  • The sooner you start an RESP for your child, the more time your contributions will have the chance to grow.
  • The Canada Education Savings Grant (CESG) matches 20% of annual contributions, up to $500 per year
  • The matching contributions can continue until the lifetime limit of $7,200 per child has been reached
  • Investing your Canada Child Benefit could help you save enough to qualify for the maximum CESG amount





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