Give Your Child’s Education a Stronger Financial Start
Start planning for your child’s future education with an RESP. Build savings over time and explore government education savings benefits that may help support their post-secondary journey.
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What Is an RESP?
A Registered Education Savings Plan (RESP) is a registered savings plan designed to help save for education after high school. It can help families prepare for expenses such as tuition, books, housing, tools, and transportation.
Save for Education
Build savings for eligible post-secondary education expenses over time.
Tax-Deferred Growth
Investment earnings can grow inside the RESP without being taxed annually.
Government Benefits
Eligible beneficiaries may receive education savings grants and bonds.
Make Education Savings Part of Your Family’s Financial Plan
Higher education can come with a range of expenses. An RESP offers a structured way to save for those costs while giving eligible families access to government education savings incentives.
- Save gradually toward future education costs
- Access eligible government education savings benefits
- Allow investments to grow tax-deferred within the plan
- Prepare for college, university, trade school, or apprenticeship
- Explore RESP options based on your family’s needs
Government Support That May Help Grow RESP Savings
Depending on eligibility, an RESP beneficiary may receive government contributions in addition to personal savings.
Canada Education Savings Grant
The basic CESG generally adds 20% of eligible contributions, up to $500 per year and a lifetime maximum of $7,200 per beneficiary. Additional amounts may be available for eligible families.
Canada Learning Bond
Eligible children from lower-income families may receive up to $2,000 through the CLB. Personal contributions are not required to receive this benefit.
Provincial Programs
Eligible beneficiaries in British Columbia or Quebec may qualify for additional provincial education savings benefits.
Government benefit amounts and eligibility depend on program rules, beneficiary circumstances, and applicable contribution requirements.
Explore Different Types of RESP Plans
The right plan depends on who you are saving for, your family situation, and how you prefer to manage contributions and savings.
Individual RESP
Designed for one beneficiary. It can be opened by a parent, grandparent, relative, friend, or another eligible subscriber.
Family RESP
Allows eligible related beneficiaries to be named under one plan, making it an option for families saving for multiple children.
Group RESP
Group plans have their own contribution schedules and contract terms. Review fees, conditions, and flexibility before choosing.
Understand RESP Contribution Limits
Knowing the contribution rules can help you plan savings and avoid exceeding the lifetime limit.
No Annual Limit
There is no annual contribution limit for RESPs opened in 2007 or later, subject to the lifetime limit and plan terms.
$50,000 Lifetime Limit
The lifetime contribution limit is $50,000 per beneficiary across all RESPs combined.
Track Contributions
Keep track of contributions made by all subscribers to help avoid excess contributions and related tax penalties.
How an RESP Works
A straightforward process can help you get started with education savings.
Choose a Plan
Explore available RESP options and identify a plan that aligns with your family’s needs.
Start Saving
Make contributions according to your plan and review eligibility for applicable government benefits.
Use Funds for Education
When the beneficiary enrols in an eligible program, RESP funds may be used for qualifying education expenses.
What If Your Child Does Not Pursue Post-Secondary Education?
If the beneficiary does not continue with eligible education, there may be different options depending on the RESP type, plan terms, and applicable government rules.
- Keep the RESP open within its permitted time limits
- Explore changing the beneficiary where plan rules allow
- Review whether a transfer to another eligible plan is possible
- Understand how unused government grants are handled
- Review possible withdrawal and tax implications
The available options depend on the specific plan and eligibility conditions. Consult your RESP promoter before making changes.
RESP FAQs
Answers to common questions about Registered Education Savings Plans.
What does RESP stand for?
RESP stands for Registered Education Savings Plan. It is a registered savings plan designed to help save for education after high school.
Who can open an RESP?
An adult can open an RESP for a child, including a parent, guardian, grandparent, relative, or friend. Eligible adults may also open an RESP for themselves.
How much can I contribute to an RESP?
For RESPs opened in 2007 or later, there is no annual contribution limit. The lifetime contribution limit is $50,000 per beneficiary across all RESPs.
Does the government contribute to an RESP?
Eligible beneficiaries may receive the Canada Education Savings Grant, Canada Learning Bond, and certain provincial education savings benefits. Eligibility and amounts vary.
Are RESP contributions tax-deductible?
No. RESP contributions are made with after-tax dollars and are not tax-deductible. Investment earnings grow tax-deferred inside the plan.
What can RESP funds be used for?
Eligible funds can help pay for post-secondary education expenses such as tuition, books, housing, tools, and transportation, subject to program rules.
What happens if the RESP is not used?
Options depend on the plan and applicable rules. These may include keeping the plan open, changing the beneficiary where permitted, or closing the plan. Government grants and investment earnings are subject to specific conditions.
Start Planning for Your Child’s Education
Explore RESP options and understand how education savings benefits may fit into your family’s financial plans.
Get a Free Quote