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Registered Education Savings Plan (RESP)

What is an RESP?

A Registered Education Savings Plan (RESP) is a Canadian government savings program that helps you set aside money for your child’s post-secondary education.

When you open an RESP, your contributions can qualify for government grants, and your investments grow tax-deferred. When funds are withdrawn for school, they’re typically taxed in the student’s hands, often at a lower rate.

An RESP can be an important part of your education savings strategy, whether you’re planning for university, college, or trade school.

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Understanding RESPs

RESP eligibility basics

Most Canadian residents can open an RESP for a child. Parents, grandparents, and other caregivers can contribute. The beneficiary must have a Social Insurance Number.

Government grants and tax advantages

Government grants match 20% of annual contributions up to $500 per year, with a $7,200 lifetime maximum per child. Growth is tax-deferred and taxed to the student when withdrawn.

Contribution limits and timeline

There is a $50,000 lifetime contribution limit per child. There is no annual limit, but government grants are based on annual contributions. An RESP can remain open for up to 36 years.

Who should consider an RESP?

An RESP may be a good fit for parents, grandparents, or caregivers who want to build education savings for a child’s future.

If you’re planning for university, college, or trade school, a Registered Education Savings Plan can help you take advantage of Canadian government RESP grants while growing savings over time.

A Mainstreet advisor can help you decide how an RESP fits into your overall savings plan.

Ways to invest with an RESP

An RESP account can hold different types of education savings and investments. Depending on your timeline and comfort level, you can choose guaranteed options like savings or GICs, or invest for long-term growth with mutual funds* or self-directed investing**.

Advisor Managed Investing

Advisor-Managed Investing offers you guidance and a plan built around your goals. A Mainstreet advisor helps you manage investments, such as mutual funds, and adjusts your strategy as your life and priorities change.

Qtrade Direct Investing®

Qtrade Direct Investing gives you the flexibility to manage your savings and investments independently, using tools and resources to stay in control.

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*Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions.

**Online brokerage services are offered through Qtrade Direct Investing, a division of Aviso Financial Inc.

Start a Registered Education Savings Plan (RESP)

Open a Registered Education Savings Plan (RESP) and start building tax-sheltered savings for your child’s post-secondary education.

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Learn more about RESPs

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FAQs

What is an RESP?

An RESP is designed to help you save for a child’s post-secondary education. Investments held within an RESP grow on a tax-deferred basis, and when funds are withdrawn to pay for education, the investment growth is taxed in the hands of the student.

Contributions to an RESP are matched at a rate of 20% by the government up to $500 per year and $7,200 total per student.

How much can I contribute to an RESP?

You can contribute up to $50,000 per beneficiary for an RESP, however there is no annual limit – you can save at your own pace.

What is the maximum government contribution match?

The government match is 20% up to $500 per year per beneficiary. The maximum contribution match is $7,200 per beneficiary.