Registered Education Savings Plan (RESP)
Investing for their education.
What is an RESP?
A Registered Education Savings Plan is a tax-deferred account where you can save for a child’s post-secondary education. One of the main perks: free money from government grants and bonds.
Flexible ways to use it
RESPs can be used on tuition at thousands of designated schools worldwide or anything else needed while enrolled, like food and supplies.
Free government grants
Over the years, free money from RESP government grants and bonds can add up to thousands. For government bonds, you don’t even need to contribute anything.
Set them up for success
Saving for your children’s education shows them you value their education and encourages saving. Help start their adult lives without a crushing debt.
RESP grants and bonds.
$1,200
BC RESP grant
The BC Training and Education Savings Grant (BCTESG) provides eligible children in BC a free one-time $1,200 RESP grant. Apply with us between the child’s 6th and 9th birthday.
Up to $7,200
Canada Education Savings Grant (CESG)
The CESG will grant up to $500 a year, or up to $1,000 a year with unused grant room from previous years. It’s based on what you contribute to the RESP annually up to the end of the year they turn 17, up to a lifetime total of $7,200. Low- and moderate-income families can qualify for more.
Up to $2,000
Canada Learning Bond (CLB)
A beneficiary whose family meets the income eligibility criteria can receive up to a lifetime maximum of $2,000. This includes $500 for the first year of eligibility and $100 every year up until the year they turn 15. CLB can be received without making any RESP contributions.
How an RESP works.
Open an RESP account
All you need to open an account is the child’s SIN number and date of birth. That means anyone can open an RESP account for a child, including parents, guardians, grandparents, other relatives, or friends. The child needs to be a resident when designated the beneficiary.
You will need to choose what type of RESP account to open. Your choices include:
- Individual plan: For one child who doesn’t have to be related to you. If the child doesn’t pursue post-secondary education, you can change the beneficiary if the RESP plan allows.
- Family RESP: For families with more than one child. One plan makes managing the investments easier. Earnings can be shared among the children, and the CESG maybe used by any beneficiary named in the RESP, to a maximum of $7,200.
Primary caregivers must provide their name and SIN on the grant application form to request the CLB and the Additional CESG; their adjusted family net income is used to validate eligibility.
Apply for RESP grants and bonds
We’ll help you file the applications necessary to receive the following grants and bonds:
- British Columbia Training and Education Savings Grant (BCTESG) – a one-time $1,200 RESP grant for eligible children residing in BC
- Canada Education Savings Grant (CESG) – annual grants based on your contributions
- Canada Learning Bond (CLB) – annual bond for families that meet certain income eligibility requirements
Make contributions
You can, and we encourage you to, set up regular auto-deposits to grow your RESP and take advantage of the CESG.
Here’s the math:
If you contribute $2,500 a year, you’ll make the most of the CESG and receive the maximum grant of $500 a year up to the end of the year a beneficiary turns age 17 (or more for low and modest-income families).
Also note the RESP lifetime contribution limit is $50,000 and the CESG lifetime maximum is $7,200 per beneficiary.
Grow your investments
You’ll also need to make decisions about where to invest your RESP money. This is where our wealth management professionals can really help. We look at your family’s financial plan and use investment strategies that consider when you’ll need the money.
RESPs are tax-deferred, so as your investments grow in the account you don’t pay any immediate tax. As the money is withdrawn, the beneficiary will be taxed on the growth of the investments and any grants or bonds, often at a low tax rate because they’ll be students.
Get portfolio reviews
How often depends on what investments you choose and their risk levels. We recommend reviewing your investments at least twice a year.
Withdraw from the RESP
When your child is attending a qualifying school, they can start withdrawing from the RESP for tuition or other expenses. Your child doesn’t have to use their RESP right at 18. You can make contributions for 31 years and the account can stay open for up to 36 years.
Work with a wealth management professional to make a withdrawal plan, as withdrawal rules can be complicated.
Questions? We have answers.
Keep learning.
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Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated.
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