Registered Education Savings Plan (RESP)
An RESP lets you save for a child's post-secondary eduction. Earnings are tax-sheltered, and generous Federal Government incentives are available.
- Mutual Funds, Term Deposits, and Savings Plans are available
- Convenient and easy contributions through direct deposit, payroll deduction, electronic funds transfer, by mail, or in person
- A basic CESG grant of 20% of the contributed amount, to a maximum of $500 per year for each eligible child registered under this program, is paid by the Federal Government into the RESP. (The lifetime maximum grant is $7200 per child.)
- Additional CESG grant amounts and a Canada Learning Bond may be available to qualified families
- If your child decides not to pursue post-secondary education, options to choose another beneficiary are available
There is a lifetime contribution limit of $50,000 per child. Contributions made to an RESP are not tax-deductable. The government grant and accumulated income earned in the RESP are paid to the student to cover educational expenses. The grant and accumulated income are taxable to the student in the year paid. When the student attends an approved post-secondary institution, the RESP principal deposits can be returned to the subscriber of the RESP or paid to the student, tax-free.
Learn more from the Canada Revenue Agency.
Interested in setting up an RESP?
Charlene