A Registered Education Savings Plan is an investment vehicle with the specific purpose of funding post-secondary education for a beneficiary.
A key benefit of a RESP is the government grants attributed to the plan, which are based on the amount of funds invested and the age of the beneficiaries of the plan.
How a RESP works Learn more
- Funds invested in a RESP grow tax free until such time as they are withdrawn by the beneficiary.
- A RESP has one beneficiary (other than a Family Plan RESP which allows more than one beneficiary).
- Subscribers, generally parents, name the beneficiary under the plan.
- Subscribers can be:
- Spouses or common-law partners as joint subscribers;
- A public primary caregiver of the beneficiary;
- For a Family Plan RESP, someone who is connected by blood or adoption to each beneficiary.
- Subscribers make contributions to the RESP.
- Contributions to a RESP are not deductible for tax purposes.
- Income earned in a RESP is not taxable so long as it stays in the RESP.
- If applicable, government grants are paid into the RESP. The available grants are:
- Canada Education Savings Grant (CESG)
- Canada Learning Bond (CLB)
- Designated provincial education savings program
- Grants based on family net income and eligibility
Contact a Financial Services Advisor.