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Registered Education Savings Plan (RESP)

Give your child a head start on their postsecondary education with an RESP.

What is an RESP?

An RESP is a specialized account sponsored by the Canadian government to encourage saving for a child’s future post-secondary education. An RESP can be opened up for anyone, including your children or grandchildren.

RESPs have a maximum lifetime contribution of $50,000, with no annual contribution limits. In addition to your contributions, the federal government will also contribute 20% annually on the first $2,500 deposited into an RESP until the end of the year in which the child turns 17 through the Canadian Education and Savings Grant program (CESG).

You may also access thousands of dollars in government grants to a lifetime maximum of $7,200 through the Canada Learning Bond (CLB). You do not get a tax deduction for the money you contribute into an RESP, and any interest earned is not taxed until withdrawn by the student.

RESP features you’re sure to enjoy

Enjoy flexible savings options

Choose from a variety of investment options within your RESP to suit your savings goals.

Your savings are tax deferred

You do not get a tax deduction for the money you contribute into an RESP, and any interest earned is not taxed until withdrawn by the student, who is typically at a lower tax bracket.

Access the funds when and how your child needs

Your child has up to 35 years to use the funds, and if they don’t pursue post-secondary education, you can select a new beneficiary or collapse the plan.

Get the most from your money with government grants

Your savings grow even faster with government incentives from the Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB).

Variable savings

Choose this competitive interest, variable-rate savings option while you decide the best way to invest your funds.

Features
  • Earn interest right from dollar one 
  • Interest calculated on minimum daily balance and paid annually on December 31
  • Deposits are guaranteed 100% by the Deposit Guarantee Corporation of Manitoba*

GICs

Choose a term length that works for you and earn a guaranteed rate of return.

Features
  • Choose from convenient 1- to 5-year terms with a minimum investment of $500
  • Interest is paid annually and can be compounded (added to the GIC) or paid out to your account
  • GICs are non-redeemable 
  • Tiered interest rates start at $100,000 and are paid on the entire balance
  • Deposits are guaranteed 100% by the Deposit Guarantee Corporation of Manitoba*

Mutual funds

Mutual funds are a good way to diversify your savings portfolio and you can benefit from our knowledgeable advisors and professional investment management to meet your financial goals.

Features
  • Choose from a broad assortment of professionally managed mutual funds**
  • Diversification for a portfolio that’s custom tailored to your needs and risk tolerance
  • Convenient and simple way to invest in a variety of securities

RESP frequently asked questions

What happens if the child doesn’t pursue post-secondary education?
RESPs are all about flexibility and choice, so, if a child named in your RESP chooses not to go to college or university you have several options:
 
  1. Change the plan to another child
  2. Transfer money to another RESP
  3. Transfer the money to your RRSP
  4. Close the plan and redeem it (the tax slip for interest earned is sent to the subscriber)
Can I use my RESP for costs other than tuition?
Yes, RESPs can use used to cover the cost of both tuition and a student’s living expenses as Educational Assistance Payments (AIP).
Which schools qualify for Educational Assistant Payments?
Most Canadian post-secondary institutions and programs qualify for the RESP Educational Assistance Payments. Visit the Government of Canada website for a full list of qualifying institutions and additional information here.

Tips & tools

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Good financial habits start early

Help your child or grandchild build financial independence one step at a time with our youth products and services.
Explore our youth accounts
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Learn how to make the most of your RESP

As a parent juggling multiple competing expenses and savings goals, you may be at times challenged to find extra savings for this kind of long-term investment.
Read our savings strategies
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Receive investing advice

Our Insights & Advice page includes plenty of great articles to help you make the most of your investments.
Read our investing articles

RESP rates

Account
Interest Rate
RESP / RDSP (variable) 2.85%
GIC (RESP / RDSP)
12-month 4.25%
24-month 4.35%
36-month 4.55%
48-month 4.60%
60 month 4.85%

*Includes all savings and chequing accounts, RRSPs, RRIFs, TFSAs, and GICs. 
**Mutual funds and related financial planning services are offered through Credential Asset Management Inc. Mutual funds, other securities and securities related financial planning services are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.

Unless otherwise stated, mutual fund 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. 

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