What to know before choosing a plan
Plain-language information, designed to help you compare meaningful differences.
How an RESP supports education savings
An RESP is a registered account designed to save for a beneficiary’s eligible post-secondary education. Contributions are not tax-deductible, but investment growth and eligible government incentives can accumulate inside the account under program rules.
Payments out of the RESP have different tax treatment depending on whether they represent contributions or educational assistance payments.
Understand available grants and contribution limits
The basic Canada Education Savings Grant may provide 20% on eligible annual contributions, subject to applicable limits, lifetime caps and child-specific eligibility. Additional incentives may apply to certain households.
RESPs have lifetime contribution limits; making a contribution does not by itself guarantee grant eligibility. Verify current government rules before opening an account or front-loading contributions.
Family plans and flexibility
Family RESPs may simplify education saving for multiple eligible children, subject to restrictions. If one child does not pursue qualifying education, different transfer or withdrawal pathways may exist with their own conditions.
Compare investment flexibility, fees, withdrawal rules and provider restrictions. Group scholarship plans can operate differently from individual or family RESPs.
Choose investments for the actual education date
A portfolio for a newborn can differ from one for a 16-year-old who will need tuition money soon. Consider moving funds intended for near-term expenses away from excessive market volatility.
A local planning review can help coordinate RESP saving with the family’s emergency reserve, debt obligations and retirement goals.