Registered Education Savings Plan (RESP)


RESPs can be a great way to save for a child’s post-secondary education. The money invested in an RESP can grow tax-deferred until the time of withdrawal, and the best part is that the government can contribute up to $7,200 directly to a child’s RESP.

Benefits of an RESP

  • Tax-deferred growth potential

    RESP earnings are tax-deferred. When withdrawn, the earnings are taxed as income to the child, who may pay little to no taxes as a student.

  • For tuition and beyond

    RESPs can be used for items related to obtaining a post-secondary education, including tuition, textbooks, rent and transportation.

  • Friends and family can contribute

    Friends and family can open an RESP to help you save for your child's education. Learn more about Individual vs. Family plans

How RESPs work

  1. You contribute money into a child’s RESP. The government will then contribute an additional 20% on the first $2,500 contributed annually, up to a maximum of $500 a year. That can add up to $7,200 over the lifetime of the RESP, per child, in grant money through the Canada Education Savings Grant (CESG). You may also be eligible for the Canada Learning Bond (CLB) and additional provincial grants.

  2. You can set up an individual or family RESP. An individual plan is meant for one child, whereas savings in a family plan are shared among multiple children. Learn more about the difference between a family and an individual RESP.

  3. There are no annual contribution limits or any limits on the number of RESPs you can have. Keep in mind that the lifetime contribution limit is $50,000 per child and you could make RESP contributions for up to 31 years. Learn more about contribution limits.

RESP Accounts that align with your goals

TD offers several RESP options designed to meet your specific needs. Talk to a TD Personal Banker to find the right option for you.

    • Gives you access to certain mutual funds offered through TD Investment Services Inc.
    • Benefit from professionally managed mutual fund investments
    • Flexible investing options through a Pre-Authorized Purchase Plan

    Great for: Investors comfortable with risks associated with market fluctuations.

    • Gives you the option of investing in GICs
    • Access to a variety of GICs with different terms and features
    • Earn a guaranteed rate of interest

    Great for
    : The investor who's looking for a guaranteed return.

    • Self-directed accounts
    • Power to select your investments and take advantage of market opportunities in Canada and the US
    • Flexibility to hold a range of investment products in one account

    Great for
    : The investor that likes to take a hands-on approach to their investing.

We can help you plan for the future

  • Personalized investment advice

    TD Personal Bankers will work with you to understand your financial goals and help you map a path towards achieving them.

  • The right options

    No matter what type of investor you may be, we’re ready with options to help you succeed.

  • Convenience

    The advice you want. Call us Monday to Friday from 8 am – 8 pm EST to speak to an investment specialist in English, French, Mandarin or Cantonese.

RESP Calculator

Use our RESP Calculator to find out how much you may need to save for your child’s education and how an RESP can help you achieve your savings goals.

Frequently Asked Questions

There are a variety of investment options to choose from based on your financial goals. A TD RESP could hold mutual funds, GICs, ETFs, stocks and bonds. The best part is that you could grow your money and defer the taxes in a RESP.

TD Bank does not provide tax advice. You should consult your tax advisor for questions related to your individual tax situation.

The lifetime contribution limit per child is $50,000, but there is no annual contribution limit. You have 31 years to contribute to an RESP, and the plan can remain open for a maximum of 35 years.

If you over contribute to an RESP there will be tax implications. An RESP over contribution is when you exceed the $50,000 lifetime limit per child. If you over contribute, you will have to pay 1% per month in taxes on the share of the excess contribution that is not withdrawn by the end of the month. You have 90 days after the end of the year to pay the tax. Payments from the CESG or any Provincial Education Savings Programs do not count as contributions. TD Bank does not provide tax advice, and you should consult your tax advisor regarding your individual tax situation.

The RESP is designed for funding a child’s post-secondary education. However, you could withdraw your funds from an RESP any time, but keep in mind that there may be tax implications. You should consult your tax advisor for questions related to your individual tax situation.

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