What is an RESP?

A Registered Education Savings Plan (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 yearly 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.
 

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 You do not get a tax deduction for the money you contribute into an RESP, and any interest earned is not taxed until withdrawn by the student.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

There are RESP options to suit every child’s financial future. Choose between a family plan for more than one child in a single family, or an individual plan for one specific child in your life. Either way, we’ll always make sure you get the right plan to meet your family’s goals.

Tax-sheltered growth

All income earned within an RESP is tax-sheltered until it is withdrawn. Withdrawals are taxed at the student’s rate, which is typically in a lower tax bracket, meaning less tax may be paid.
 

Full flexibility

Children have up to 35 years to access and use their RESP. Or, if they don’t pursue post-secondary education, you can select a new beneficiary or collapse the plan if the child does not attend.
 

Government education grants

Your savings grow even faster with government incentives from the Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB). These grants and incentives do not impact your contribution room.
 

100% Deposit Guarantee

All your deposits are guaranteed 100% by the Deposit Guarantee Corporation of Manitoba.
 

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 cash out

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.
 

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.