RESP (Registered Education Savings Plan)

Putting money aside for your children or grandchildren to attend a college or university is one of the best gifts you can give them. Of course, you already have numerous financial obligations.  So, how can you contribute to their future success without making sacrifices or having second thoughts about the merits of higher education?  

The RESP allows you to easily accumulate capital for the post-secondary education of your children or grandchildren. By investing in an RESP, you benefit from advantageous government grants and your savings grow tax-free. Determine the amount and type of investment that you want and start growing your money now, tax-free.

The RESP gives you a tax advantage and allows you to receive an attractive grant; the RESP really is profitable!

If you invest $2000 per year from your child's birth onward, in 18 years, that amount will total $36,000.

Of course, this amount will grow more in a (tax-free) RESP than in a (taxable) non-registered account.

And that's not all. Here's what you'll get at the end of the period:

Calculation assumption:

• 4% annually compounded rate of return based on a balanced portfolio;
• Tax rate: 29.65%;
• Canada Education Savings Grant of 20% in the RESP.

Who can open an RESP?

A parent, grandparent or friend can open an RESP. They then become the RESP subscriber and the designated child, the beneficiary. The child must have a social insurance number and be a Canadian resident. It is possible to have several subscribers for the same beneficiary child.

Grant

The RESP is one of the best ways to invest in your child's future. Government grants, which add to your contribution, are equivalent to an impressive return of at least 20%. The Canada Education Savings Grant (CESG): up to $500 per year, for a maximum of $7,200. For example, here are the grants you would get with a contribution of $2,500 per year.

 

Canada Education Savings Grant (CESG)
Net family income	Basic CESG	Additional CESG	Yearly maximum
$50,197 and less	20%	20%	$600
From $50,198 to $100,392	20%	10%	$550
$100,393 or more	20%	–	$500

 

Is your income limited? The Canada Learning Bond (CLB) provides an opportunity to save for the education of a child under the age of 15 from a low-income family. Eligible families receive an initial amount of $500 in the first year of opening an RESP. For the following years, $100 per year is paid to you, up to a maximum of $2,000, for each year the family remains eligible.

Investment options

Depending on your investor profile, several investment options are available, including:

• Guaranteed fixed-rate investments (GICs)
• Mutual Funds¹

Make an appointment. We can guide you in choosing an investment for your RESP and give you information on the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB).

Try our RESP calculator

 

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1. Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc.

Online brokerage services are offered through Qtrade Direct Investing, a division of Aviso Financial Inc.