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RESP

Start saving for your child’s education early and watch the savings grow along with them. 
Children leaning over edge of dock, with feet in the water, splashing water.

Registered Education Savings Plan

Start saving for your child’s education early and watch the savings grow along with them. 

What is an RESP?

A Registered Education Savings Plan (RESP) is an investment 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 Although your contributions are not tax-deductible, all income earned in your RESP is sheltered from taxes until it’s withdrawn to pay for your child’s education. As an added incentive, the federal government provides grants to RESPs based on your annual contributions, so you can receive additional money to help build your savings.

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Key Information

  • Contribute any amount per year, as long as the total contributions do not exceed the maximum lifetime limit of $50,000 per child.
  • 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 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.
  • Choose from a variety of investment options for your RESP.
  • Eligible deposits in registered accounts have Deposit Insurance coverage.*

Your Guide to Understanding the Registered Education Savings Plan - View PDF

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Canada Education Savings Grant

The federal government offers the Canada Education Savings Grant (CESG) which provides a 20% matching payment on the first $2,500 of annual contributions, to a maximum CESG of $7,200. You could also be eligible for an additional CESG supplement, based on your net family income, of 10% to 20% on the first $500 of annual contributions. 

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The Canada Learning Bond

The Canada Learning Bond (CLB) is a government incentive that provides up to $2,000 in free money to qualified beneficiaries born on or after January 1, 2004. You do not have to make any contributions to a RESP in order to receive the bond.

The Canada Learning Bond

The Canada Learning Bond (CLB) is a government incentive that provides up to $2,000 in free money to qualified beneficiaries born on or after January 1, 2004. You do not have to make any contributions to a RESP in order to receive the bond.

Young child sitting with father and grandfather on front step of house.

*RESP investments are offered through Concentra. Concentra provides Deposit Insurance coverage through the Canada Deposit Insurance Corporation.

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