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The Registered Education Savings Plan, commonly known as an RESP, is a financial tool specially designed to accumulate savings to be used as a financial resource for a beneficiary's post-secondary education. As with an RRSP, the federal government allows the investment income to grow, in a tax shelter, until the money is withdrawn from the plan.

 

The RESP investment plan has the following components:

  • PARENT'S CONTRIBUTION:

The monthly parents' contribution starting with a minimum $25 / month up to a total of $2500 / year (as per the current regulation).

There are three ways to contribute to this RESP plan:

  • monthly PAC deposits,
  • additional deposits (including the catch-up RESP on previous years contributions)
  • RESP transfers from another institution.

The contribution period corresponds to a calendar year, i.e. from January 1 to December 31.

 

  • CANADA EDUCATION SAVINGS GRANT (CESG)

Since January 1998, the federal government has had a Canada Education Savings Grant (CESG) in place for contributions made to an RESP. This Grant is very lucrative as it significantly increases the savings for a child's post-secondary education. The CESG is set out to be 20% of the subscriber's total contribution up to a maximum of $7200 for the lifetime of the plan.

Certain rules apply- please contact us for more details. 

 

  • CANADA LEARNING BOND (CLB)

The Canada Learning Bond is a grant offered by the government of Canada to help low-income families to begin saving early for their child's post-secondary studies. The RESP promoter applies to the federal government for the grant on behalf of the subscriber. The prescribed form, duly completed, must be sent to head office.

 

  • BONUS UP TO 15% of the monthly contribution

A guaranteed education bonus will be paid to the plan by the Company at the end of the commitment period, only if all PAC contributions have been made. The commitment ends on December 31 of the year in which the designated beneficiary at issue reaches age 17.

 

  • The value of the investment return is not guaranteed.

 

Disclaimer: All the amount listed above are based on the government regulations at the time of editing.

 

*Please contact us for scheduling an appointment to provide you with more information.

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