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Save for your children's education
The best way to secure your children's future is to sign up for a Registered Education Savings Plan (RESP), an investment program designed to help you finance your children's post-secondary studies. With an RESP, you can put money aside and let it grow in a tax-sheltered environment.
Who can subscribe to a RESP?
According to the type of account, the subscriber may be a parent, grandparent, aunt, uncle, or other family member, friend or anyone who wishes to invest for a child's post-secondary education.
The subscriber must
 Be at least 18 years old.
Be a Canadian resident.
Have a social insurance number.
Also, an RESP may be signed jointly by an individual and his or her spouse1. Subscribers must give the promoter their social insurance number and the social insurance number of each of the beneficiaries.
Who can benefit from the plan?
The RESP beneficiary is the person to whom or for whom the promoter agrees to pay out educational assistance payments (EAP), if the person is entitled to receive them at the time they are issued.
For the purposes of the plan, the beneficiary must
Be a Canadian resident.
Have a social insurance number.
RESP Features
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Grow your savings faster for your children's education
Just like a retirement savings plan, the RESP offers tax-sheltered growth for your investments until your children begin withdrawing payments.
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No foreign content limit
There is no foreign content limit for an RESP. As a result, you can diversify your investment portfolio as you see fit.
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Take advantage of the Canada Education Savings Grant (CESG)
Your child or any other plan beneficiary may be entitled to receive government assistance, called a CESG. This grant represents is equal to between 20% and 40% (depending on your net family income) for the first $500 in annual contributions and 20% for the subsequent $2,000, with a maximum of $600 a year per beneficiary. The beneficiary remains eligible for the CESG, until his or her 17th birthday. (More...)
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Canada Learning Bond (CLB)
If the eligibility criteria* is satisfied, you could receive an additional $500 grant from the federal government immediately and $100 per year over a maximum of 15 years, therefore a total amount of $2,000 over the term of your child's education savings plan can be paid.
* If the child is born after December 31, 2003 and if you are receiving the National Child Benefit Supplement.
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Flexibility
Subject to certain conditions, you can transfer your contributions and accumulated grants to another of your children if the original beneficiary decides not to pursue post-secondary education. |
Opening an RESP is as easy as 1 2 3!
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Step 1: Obtain a Social Insurance Number (SIN) for your child
Contact the nearest Human Resource Centre of Canada to apply for a SIN for your child. You will find the forms on the Human Resources Canada web site.
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Step 2: Choose the most convenient method to open your child's RESP account
Complete the account application forms directly online or call our Customer Contact Centre at 1-800-363-3511 or (514) 866-6755. |
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