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Registered Education Savings Plan

A registered education savings plan is one of the easiest ways of offering your children, grandchildren or someone else dear to you a post-secondary education free of financial hardship.

The Government of Canada allows savings for education to grow tax free until your child enrolls in education after high school. The child named in an RESP is known as a beneficiary.

Although RESP contributions are not tax-deductible, they do allow savings to compound and grow tax-free until the child is ready to go full-time to college, university, or another post-secondary educational institution.

Basic Principles to Remember

The sooner you begin to invest, the higher the amount that will be available for your child or grandchild to assist them in their post-secondary studies.

RESP Plan Highlights

  • For 2007 and later years, there is no annual limit for contributions to RESPs and the lifetime limit on the amounts that can be contributed to all RESPs for a beneficiary is $50,000.
  • The beneficiary obtains an income tax deferral on his or her investment income.
  • You may change the plan beneficiary.
  • Individual and Family plans are available.
  • Depending on the beneficiary's family net income, the child may also qualify for the Canada Learning Bond (CLB).

Applicants must meet the following criteria

  • Have a Social Insurance Number (SIN)
  • Have a SIN for anyone named in the RESP as the beneficiary
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