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RESP: Invest in Your Child's Future Education

Give Them a Head Start with Government Grants & Tax-Deferred Growth

What is an RESP (Registered Education Savings Plan)?

A Registered Education Savings Plan (RESP) is a special savings account designed to help you save for a child's post-secondary education. Contributions to an RESP are not tax-deductible, but the investments within the plan grow tax-free until the funds are withdrawn for educational purposes. Plus, the government offers attractive grants to help boost your savings!

Key Benefits of Opening an RESP:

Access Government Grants (CESG & more)

The Canada Education Savings Grant (CESG) matches 20% of your annual contributions, up to $500 per year per child (to a lifetime maximum of $7,200). Additional grants like the Canada Learning Bond (CLB) may be available for eligible families.

Tax-Sheltered Growth

Your investment earnings (interest, dividends, capital gains) accumulate tax-free within the RESP, allowing your savings to grow faster.

Flexible Contribution Options

You can contribute regularly or make lump-sum payments, up to a lifetime limit of $50,000 per beneficiary. There are no annual contribution limits for your own contributions, but CESG limits apply.

Investment Choices

Invest your RESP in Segregated Funds or GICs through insurance companies like IA and Manulife, aligning with your risk tolerance.

Funds for Various Educational Paths

Withdrawals (Educational Assistance Payments - EAPs) can be used for full-time or part-time studies in qualifying programs at universities, colleges, trade schools, and apprenticeship programs.

Anyone Can Contribute

Parents, grandparents, other relatives, and friends can open and contribute to an RESP for a child (with the subscriber's permission for existing plans).

RESP Growth Estimator

Disclaimer: This calculator provides a simplified estimate for illustrative purposes only. It calculates basic Canada Education Savings Grant (CESG) and potential growth. It does NOT include Additional CESG, Canada Learning Bond (CLB), provincial grants, or account for specific investment fees. Actual returns depend on investments chosen and market performance. Lifetime CESG is capped at $7,200. For personalized advice, please consult with us.

How RESPs Work:

  • Subscriber: The person who opens the RESP (usually a parent or grandparent).
  • Beneficiary: The child who will use the funds for education.
  • Contributions: Money deposited into the RESP by the subscriber or others.
  • Government Grants: CESG and other grants are deposited directly into the RESP.
  • Investment Growth: Contributions and grants are invested and grow tax-sheltered.
  • Withdrawals (EAPs): When the beneficiary enrolls in a qualifying post-secondary program, Educational Assistance Payments (EAPs) can be made. EAPs consist of investment earnings and government grants, and are taxed in the hands of the student (who typically has a lower income, resulting in little to no tax).
  • Return of Contributions: The original contributions made by the subscriber can usually be withdrawn tax-free at any time, though this might affect grant eligibility or require grant repayment.

There are rules regarding contribution limits, grant eligibility, and what happens if the beneficiary doesn't pursue post-secondary education. We can explain these in detail.

Start Saving for Their Future Today

We can help you set up an RESP and choose the right investment strategy with trusted Canadian financial institutions like Industrial Alliance (IA) and Manulife, focusing on Segregated Funds and GICs. The sooner you start, the more time your savings and the government grants have to grow.

Plan for Your Child's Education Journey

Investing in an RESP is investing in your child's potential. Let us guide you through the process.

Open an RESP - Contact Us

Call us at 647-709-3400 or email info@oneprotection.ca to learn more.