RESPs

This account is for you if:

  • you would like to assist in saving for the future post-secondary education of a child or grandchild in your family.

Investment Features

A Registered Education Savings Plan (RESP) is a government-approved plan designed to help you save for your child’s post-secondary education. Although your contributions are not tax-deductible, all income earned in your RESP is sheltered from taxes until it’s withdrawn to pay for your child’s education.

In addition, the federal government will contribute 20% annually on the first $2,500 deposited into an RESP each year. That’s up to $500 of free money every year, to a lifetime limit of $7,200 per child.

  • You can contribute any amount per year, provided the total contributions do not exceed the maximum lifetime limit of $50,000.
  • You can open an RESP and name an individual child as the beneficiary, or opt for a family plan for several children.
  • Parents, grandparents, aunts and uncles can contribute to the RESP.
  • When beneficiaries withdraw funds from the RESP for tuition, books and living expenses, the amount is treated as income and they pay the associated income tax – but they’ll usually have a much lower marginal tax rate than the contributor(s) because they’re students.
  • If the child listed as an RESP beneficiary decides not to attend a post-secondary institution, you can name another beneficiary. Or, under certain conditions, you can transfer earnings into your RRSP. It’s important to understand the tax implications before transferring funds.

Additional Information

We provide access to a full range of investment options to suit your needs. You can choose to invest your RESP in Term Deposits, variable daily interest rate accounts or mutual funds through Credential Asset Management Inc.

Speak to your Financial Advisor or Credential Asset Management Mutual Funds Investment Specialist for details.

 

Ready to invest? Contact a Financial Advisor today!

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* Mutual Funds are offered through Credential Asset Management 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 and cash balances are not covered by Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.