Save for their future with an RESP
A Registered Education Savings Plan (RESP) is a tax-sheltered government plan designed to help you save for a child’s post-secondary education. Whether your own child, a grandchild or the child of a friend, an RESP can help prepare them for higher education.
Save up to a maximum of $50,000. Insurable deposits in registered accounts have unlimited deposit insurance coverage.
Benefits of an RESP
Earn interest – RESP earnings grow tax-free until the beneficiary withdraws them for education.
Lower your tax – Contributions are tax deductible, so investing in an RESP will reduce your annual income tax.
Lower tax rate when withdrawn – As the beneficiary begins higher education, they will typically be in a low tax bracket and will therefore pay a lower tax rate on earnings.
Anyone can contribute – You can helpful safeguard the future education for any young person in your life – be it a niece, nephew, child of a friend, or your own child.
Invest what you can – Even small automated payments from your chequing account will add up to a substantial contribution over time, with no stress.
Benefit from the Canada Education Savings Grant – The federal government will contribute up to a lifetime maximum of $7,200 to your child's plan.