RESP
Save for a child’s education and collect government grants.
Book a free consultationAll servicesEverything to know about the RESP
Who it is for
- Parents and grandparents saving for a child
- Families who want government grants
- Anyone planning for college or university costs
- Newcomers whose children are Canadian residents
How it works
- You open an RESP and name a child as beneficiary
- Government grants such as the Canada Education Savings Grant can add to your contributions
- Investments grow tax deferred
- When the student enrols, withdrawals are taxed in the hands of the student
What affects the cost
- Contribution and grant limits
- Fees on investments
- Grant rules based on the age of the child
- Family plan versus individual plan
Common mistakes to avoid
- Not contributing enough to receive the full grant
- Missing years of grant room
- Choosing an investment that is too risky close to enrolment
- Not understanding the rules if the child does not study
Parents contribute monthly from birth so they can receive the maximum grant each year. Illustration only.
Questions people ask
How much do the grants add?
The basic grant matches a percentage of your yearly contributions up to a limit. Check current limits on Canada.ca.
What if my child does not go to school?
Contributions can be returned, but grants may need to be repaid and growth may be taxed. Options exist, such as moving the plan to a sibling.
Can grandparents contribute?
Yes. Anyone can contribute to an RESP for a child.
What it is
A Registered Education Savings Plan grows savings for a child’s post-secondary education and attracts free government grants. Anyone can contribute, and the growth is taxed in the student’s hands, usually at a low rate. I help you get every grant dollar you are entitled to.
How it works
Get the child’s SIN
Needed to open the plan and claim grants.
Choose the plan type
Individual or family plan, depending on your kids.
Contribute to get the grant
Aim for $2,500 a year per child to earn the full $500.
Withdraw for school
Education assistance payments help pay tuition, housing and books.
Free calculators
Education Planning
General education only, not personalized advice. Calculator by Ativa Interactive.CESG Advantage
General education only, not personalized advice. Calculator by Ativa Interactive.Tax Benefits of an RESP
General education only, not personalized advice. Calculator by Ativa Interactive.Frequently asked questions
Who can open an RESP?
Any Canadian resident with the child’s SIN, including parents, grandparents and family friends.
How does the CESG work?
The government adds 20% to the first $2,500 you contribute each year. Missed years can be caught up, up to $1,000 of grant in a year.
What if my child does not study after high school?
You can keep the plan open for up to 35 years, name another beneficiary, or move some growth into your RRSP if you have room. Otherwise the grants go back to the government.
Which expenses qualify?
Tuition, books, housing and other costs at universities, colleges, trade schools and many programs abroad.
What is the Canada Learning Bond?
A grant for lower-income families of up to $2,000, with no contributions required.
Family or individual plan?
A family plan can be shared among related siblings. An individual plan is for one beneficiary and can be opened for anyone.
Related services
Talk to Manpreet about RESP
A free, no-obligation call to find the right fit.
Book a free consultationOffered through MS Insurance Inc. by a licensed advisor in AB, SK, BC, NB, NS, QC, MB, ON and PEI. Information is general education, not personal advice. Product availability and rules vary by province.