The Registered Education Savings Plan (RESP) is a registered savings plan designed to help families save for their children’s future education. Parents or relatives can open an account and contribute funds, benefiting from tax advantages and government support.

 

Key Benefits

​

• Tax Benefits: Contributions are not tax-deductible, but investment earnings within the account grow tax-free until withdrawal.

• Government Grants: Through the Canada Education Savings Grant (CESG), the government matches up to $500 per year, with a lifetime maximum of $7,200. Low-income families may also qualify for additional grants.

• Flexible Investments: Funds can be invested in stocks, bonds, or mutual funds, allowing for potential growth.

 

How to Open an RESP

 

An RESP can be opened at a bank, insurance company, or investment firm, or set up online. The beneficiary’s and contributor’s Social Insurance Numbers (SINs) are required. The lifetime contribution limit per beneficiary is $50,000.

 

With its tax advantages and government grants, the RESP is an essential tool for Canadian families saving for education.