Give your child a financial head start on their education with a Registered Education Savings Plan (RESP), a powerful tax-advantaged way to save for college, university, trade school, and other post-secondary programs in Canada.
RESP is a special savings plan registered with the Government of Canada that helps you save for a child’s post-secondary education. Your contributions grow tax-deferred, and when the beneficiary starts school, they can withdraw funds as Educational Assistance Payments (EAPs).
Key Benefits of RESP
Government grants
Programs like the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB) can add to your savings, with extra support for eligible lower-income families.
Tax-deferred growth
Investment earnings grow tax-free inside the plan. When withdrawn as EAPs, they are taxed in the student’s hands, often at a low tax rate.
Flexible use of funds
Money can be used for tuition and other eligible costs at eligible schools in Canada and abroad.
Provincial incentives
Some provinces, such as British Columbia and Quebec, offer additional education savings incentives on top of federal programs.
Types of RESPs
Individual plan
Best for one child or beneficiary. Anyone can open and contribute for a single named beneficiary.
Family plan
Best for families with more than one child. You can name multiple beneficiaries as long as they are related to you by blood or adoption.
How Contributions Work
Contribution rules
No annual contribution limit. You decide how much and how often to contribute, subject to the lifetime contribution limit per beneficiary (commonly referenced as $50,000; confirm with your provider and current CRA rules).
Grant eligibility
Your contributions determine how much CESG you receive each year, up to the maximum annual and lifetime grant amounts.
Excess contributions
Contributions above allowed limits may be subject to tax on excess contributions, so track contributions across all RESPs for the same beneficiary.
Using RESP Funds for Education
Educational Assistance Payments (EAPs)
EAPs consist of grants and investment earnings and are taxable to the student, who often has a low income and may pay little or no tax.
Refund of contributions
Your original contributions can be withdrawn by you or the beneficiary, generally tax-free, because you contributed with after-tax dollars.
If the beneficiary does not pursue post-secondary
Options can include changing the beneficiary, transferring to another RESP, or in some cases rolling income into an RRSP or RDSP if conditions are met.
Who Can Open an RESP?
Eligible subscribers
Parents and guardians, grandparents and other family members, and friends or other adults. You need a Social Insurance Number (SIN) for the subscriber and the beneficiary, plus a promoter that offers RESPs.
Why Start Now?
Start early
More time for growth, maximize grants, and reduce future debt. Every dollar saved today is one less dollar your child may need to borrow later.
