Registered Education Savings Plan (RESP)

D Direct Investing gives you a special savings plan to help you save for a child's post-secondary education.

Registered Education
Savings Plan

A Registered Education Savings Plan from
TD Direct Investing1 is a great way to help you save for a child's post-secondary education.

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Self-Directed RESP

A Registered Education Savings Plan, or RESP, is a special savings plan to help you save for a child's post-secondary education. With the rising costs associated with sending a child to college or university, an RESP can really help because the government provides grants while the savings grow tax-deferred until withdrawn. TD Direct Investing also offers the Canada Education Savings Grant and the Quebec Education Savings Incentive. Please note other federal or provincial grants or incentives are not available through TD Direct Investing at this time. When the student withdraws the income earned or the government grants received for educational purposes, the withdrawals are taxed in the student's hands, typically at a lower rate.

Your RESP with TD Direct Investing1 is included in your total household2 accounts, which are charged a quarterly Maintenance Fee of $25.00. There are a number of ways to have this Fee waived, which include maintaining household accounts totaling $15,000 or more, or completing three or more trades that incurred a commission in the preceding three months. Please refer to the Commission Schedule and Statement of Disclosure of Rates and Fees for more information.

Who qualifies as an RESP beneficiary?

TD Direct Investing only offers Family Plans, which allow you to name more than one beneficiary, so long as they are connected to you by blood relationship or adoption. Beneficiaries can include children, adopted children, grandchildren, and brothers and sisters. One beneficiary may be enrolled in multiple RESPs.

Each beneficiary is required to use the funds to pay for either full-time or part-time programs at a post-secondary level:

Educational Assistance Payment (EAP) Limits
Period Limits
Full-time studies First 13 weeks

After 13 weeks
The total educational expenses, up to a maximum of $5,000 (whichever is less)

Up to the total educational expenses
Part-time studies For every 13- week period of enrolment The total educational expenses, up to a maximum of $2,500 (whichever is less)

Frequently asked questions

   Top 10

How much can I contribute to an RESP?

There is no maximum yearly contribution limit for an RESP. However, there is a maximum lifetime contribution limit of $50,000 per beneficiary, for a term of 31 years. One beneficiary can be designated in more than one plan and the maximum contribution limit for that beneficiary applies to all such plans as a group.

RESP proceeds must be used within 35 years of the start of the plan. If the beneficiary decides not to attend a post-secondary educational institution, you can appoint a different beneficiary. Otherwise, the investment income can be transferred within certain limits as an Accumulated Income Payment either to your personal or spousal RSP3 or in the form of a cash withdrawal subject to taxes and certain restrictions. Contributions to the plan can be withdrawn at any time with no tax consequences.

Government grants help savings grow

The Government of Canada encourages saving for a child's education after high school by making contributions to a child's RESP with grants - that's even more money to grow your savings!

Canada Education Savings Grant (CESG)4

The basic Canada Education Savings Grant (CESG) will top up your annual contribution by 20%, up to $500 per beneficiary each year to a lifetime limit of $7,200. If the beneficiary has carried forward grant room, the client can receive to up to an additional $500 in Carry Forward CESG for a total of $1,000 in CESG per beneficiary per year. Grants available are basic CESG, basic and additional QESI, SAGES (Saskatchewan Grant), and BC Grants.

Summary of Basic and Additional CESG
Family net income CESG rate on first $500 (or less) in contributions per year CESG rate on contributions between $500 and $2,500 per year
$41,544 or less 20% basic + 20% additional 20% basic
$41,545 - $83,088 20% basic + 10% additional 20% basic
More than $83,088 20% basic 20% basic

Provincial Grants

The Québec Education Savings Incentive (QESI) is an annual refundable tax credit from the provincial government available to eligible RESP beneficiaries who reside in Québec.