RESPs - Registered Education Savings Plans
An RESP is a Registered Education Savings Plan that grows tax free until a child is ready to begin college or university. The student usually pays little or no tax on the funds as they are withdrawn at the student's lower income tax rate.
- Competitive rate of return
- Access funds at anytime
- Principal 100% guaranteed
How much can be contributed to an RESP?
Contributions up to an overall lifetime total of $50,000 per beneficiary can be made into an RESP. Contributions are not tax deductible. Unused contributions can be carried over into future years.
Can there be more than one beneficiary?
Yes, provided the beneficiaries are related to the subscriber by blood or adoption.
What is the Canada Education Saving Grant (CESG)?
Effective January 1, 2007 the federal government provides a CESG equal to 20% of the annual contributions (up to a maximum grant of $1,000 per year) to an RESP for children up to the age of 17.
The additional CESG was introduced in 2004. It was created for children in families entitled to the CCTB settlement based on family net income. An eligible beneficiary will receive additional CEEG of either 10% or 20% on the first $500 of annual RESP contribution made on or after January 1, 2005.
Canada Learning Bond
The Canada Learning Bond (CLB) was created for children in families entailed to the National Child Benefit Supplement, a component of the Canada Child Tax Benefit, which will provide up to $2,000 for children born after 2003.
To open an RESP or learn more about the grants you’re eligible for call or visit one of our branches.
Deposits held in registered savings plans are separately insured from the deposits held in other accounts. All deposits made to RESP plans are fully insured through the Financial Services Regulatory Authority (FSRA) with no limit on the maximum amount.