Registered Educational Savings Plan

It's never too early to start saving for your child's post-secondary education. Saving a few dollars a month can really add up. Add to this free contributions available from the Government of Canada and you are well on your way to paying for your child's education! 

What is an RESP?

A Registered Education Savings Plan (RESP) is a special tax-sheltered  savings account that allows you to save for a child's post-secondary education.

Anyone can open a RESP for a child - parents, guardians, grandparents, other relatives, or friends. your child can take money out of the RESP when they enrol in university, college or another qualifying education program. 

If you save for a child age 17 or under, the federal government also puts money into the RESP throught grants and programs available.

Download the digital copy of our brochure: Investing In RESPs

Who can open an RESP?

Anyone over age 18 with a valid social insurance number can open an RESP. As the registered owner, you are then entitiled to make contributions or to add or remove beneficiaries. The person who opens an RESP is known as a subscriber and can be an individual or an individual and their spouse or common-law partner.

Who can I name as a beneficiary?

In most cases, your child will be the beneficiary. But you can name yourself, your spouse or another person as a beneficiary. There is a limit of one beneficiary per plan except under a Family Plan, which provides for multiple beneficiaries. The beneficiaries of a Family Plan must be related to the subscriber(s) by blood or adoption.

How much can I contribute?

There is a lifetime contribution limit to all RESPs of $50,000 per beneficiary, with no annual limits. These contributions are not tax deductable.

What is the Canada Education Savings Grant (CESG)?

The CESG is a grant from the Government of Canada that adds 20% to the first $2,500 of annual RESP contributions. This means that the RESP can collect an extra $500 a year (up to a lifetime maximum of $7,200 per beneficiary, this amount is not included in the contribution limit) towards a child's education.

Depending on the child's primary caregiver's net income, he or she may also be eligible to receive the Additional Canada Education Savings Grant (A-CESG). This grant adds an additional 30% or 40% onto the first $500 put into the RESP. (The additional amount is based on your net family income and can change over time as your net family income changes.)

What is the Canada Learning Bond (CLB)?

Get up to $2,000 for your child's Registered Education Savings Plan (RESP) - without having to put in any of your own money! The Canada Learning Bond offered by the Government of Canada helps parents get a head start in saving for their child's education after high school.

The CLB provides a one-time initial grant of $500, followed by an additional $100 per year of eligibility until age 15. This means the RESP can collect up to a limtime maximum of $2,000 per beneficiary.

Next Step?

Contact your Victory Credit Union Financial Advisor to learn more about options available to you and to open your RESP.