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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 The student usually pays little or no tax on the funds as they are withdrawn at the student's lower income tax rate.

RESP Features

  • 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.

Additional CESG

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.

Eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA)

For more information visit: FSRA Deposit Insurance Reserve Fund (DIRF)