Fact Sheet

• A Registered Education Savings Plan (RESP) is a special savings account that allows money deposited for a child’s post-secondary education to grow tax-free until the person named enrolls in studies after high school.
• Having an RESP helps families save for their children’s post-secondary education and also encourages them to plan early for school.
• Even a small amount of savings in an RESP increases the likelihood that a child will continue their studies after high school.
• RESPs can be used to pay for full-time or part-time studies in a college or university, trade school, CEGEP or an apprenticeship program.
• The Government of Canada helps savings in RESPs grow more quickly by offering special savings incentives, such as the Canada Education Savings Grant and the Canada Learning Bond.
• RESP contributions up to $2,500 per year are eligible for a 20 per cent Canada Education Savings Grant, up to a lifetime maximum grant of $7,200 per child. An additional grant is available for low and middle-income families; a separate application needs to be filled to receive it.
• Children from low-income families eligible for the National Child Benefit Supplement could receive an initial Canada Learning Bond of $500 in their RESP, with additional payments of $100 each year until age 15.
• RESPs are available from banks, credit unions, group plan dealers or through certified financial planners.
• It is important to shop around to find the type of and costs that best suit a family’s needs. There are three types of RESPs to choose from: family, individual or group plans.
• Parents, guardians, grandparents, other relatives or friends can open an RESP for a child.