Registered Education Savings Plan (RESP)

A savings plan for your children’s or grandchildren’s future becomes increasingly important as the cost of post-secondary education continues to increase.

RESPs offer an effective way to maximize the money available to your children or grandchildren when they enrol in a full-time post-secondary program.

Types of plans

You can choose from 2 plan types—individual plans and family plans.

Individual plans - accommodate one beneficiary.
Family plans - allow for more than one beneficiary so you can add siblings.

Contribution details

The lifetime contribution limit is $50,000 per beneficiary. There are no annual contribution limits. You can make contributions each year for up to 21 years.

The savings advantage

Although contributions are not tax deductible, the money within the plan grows tax-free until your designated beneficiary withdraws it.

You may apply for the following grant:

Canada Education Savings Grant (CESG) – Each beneficiary is eligible for the CESG.

The federal government provides a 20, 30 or 40% grant (dependent on family net income) on the first $500 contributed, and a 20% grant on the next $2,000 contributed annually, to a lifetime maximum of $7,200.
The grant is invested directly into the beneficiary’s RESP.

In addition to the CESG, you may also apply for one or more of the grants introduced in 2006.

The Canada Learning Bond (CLB)

A Government of Canada grant to help modest-income families save for their child's education. The Government of Canada will put $500 into your child's RESP in the first year, and $100 more each following year if:

Your child was born after December 31st, 2003 and
You get the National Child Benefit Supplement (NCBS)

Alberta Centennial Education Savings grant (for Alberta residents only)