A Registered Education Savings Plan, also known as an RESP, is a savings plan used by parents to help them save for their children’s post-secondary education in Canada. With the rising costs associated with sending a child to college or university, an RESP can really help because the government provides grants* while the savings grow tax-deferred until withdrawn. When the student withdraws the funds for educational purposes, the withdrawals are taxed in the student’s hands, typically at a lower rate.

The sooner you start, the more you save !

Make the Most of Government Grants and Tax Free Savings with an RESP

A RESP is a tax-sheltered savings account. When you save in a RESP the income earned is taxed, however the benefit is that it will be taxed in the hands of your child as a student (students typically pay little to no income tax). You can receive a top-up to your plan from government grants which is available to parents who contribute to an RESP. The government grants provide: up to $7,200 from the Canada Education Savings Grant, up to $2,000 from the Canada Learning Bond, an extra $800 for residents of Alberta from the Alberta Centennial Education Savings Plan, up to $3,600 for residents of Quebec from the Quebec Education Savings Incentive and up to $4,500 for residents of Saskatchewan in the form of the Saskatchewan Advantage Grant for Education Savings. In August 2015, subscribers residing in BC will have the opportunity to apply for the British Columbia Training and Education Savings Grant, which is to be offered as a one-time grant of $1,200.