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What is a RESP?

The Registered Education Savings Plan (RESP) is a tax-sheltered plan that can help you save for a child’s post-secondary education. As the cost of higher education continues to climb, it’s more important than ever to begin saving early for your child’s college or university tuition.  A RESP is a great tax-effective tool available to help you do that.

The Canada Learning Bond and an enhanced Canada Education Savings Grant are available for qualifying low to middle income families.

Benefits:

  • Tax Deferred Earnings – RESPs offer tax deferral. This means that interest income and investment growth earned within an RESP are not taxed as long as the funds remain in the plan. Withdrawals from an RESP are taxed in the hands of the student, which usually means they pay little or no tax.
  • The Canada Education Savings Grant (CESG) – With the CESG, for an eligible beneficiary under the age of 18, the government matches 20% on the first $2,500 contributed annually to an RESP. The maximum total CESG the government will give, up to age 18, is $7,200 per beneficiary. The grant proceeds are invested along with your contributions, further enhancing the benefits of tax-deferred and compound investment growth within your plan.
  • Canada Learning Bond (CLB) – A $500 CLB is provided for children of families who are entitled to the National Child Benefit Supplement and who are born after December 31, 2003. These children also qualify for CLB installments of $100 per year until age 15, as long as they continue to receive the National Child Benefit Supplement. The total maximum CLB payable per child is $2,000. CLBs are allocated to a specific child; unlike CESGs, they cannot be shared with other beneficiaries. There is no requirement to make contributions in order to qualify for the CLB

Highlights:

  • Transfers in from other institutions can easily be arranged
  • Variable rate deposits or fixed rate terms up to 5 years available
  • Automatic deposit transfers at varying frequencies at no fee
  • No minimum deposit requirement
  • Competitive Rates

 Contact us for current RESP rates.

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