A Registered Education Savings Plan is a tax-deferred account where you can save for a child’s post-secondary education. One of the main perks – free money from government grants and bonds.
RESPs can be used on tuition at thousands of designated schools worldwide or anything else needed while enrolled, like food and supplies.
As a registered plan, RESP savings grow tax-free. When funds are withdrawn for education, investment earnings and government grants are taxed in the student's hands at a lesser marginal rate.
Maximize savings with the Canada Education Savings Grant (CESG), Canada Learning Bond (CLB), and other government incentives.
Subscriber: A parent, grandparent, legal guardian, or anyone (including yourself).
Beneficiary: Must have a valid SIN and be a Canadian resident at the time of designation.
Transfer RESP to another sibling or beneficiary
Leave RESP open in case they return to school
Withdraw income as Accumulated Income Payments (AIP) (conditions apply)
Transfer AIP to your RRSP or a beneficiary’s RDSP (restrictions apply)
