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Registered Education Saving Plans (RESP)

 Registered Retirement Income Funds

Prioritize your kid’s education - invest in RESP.

What is a Registered Education Savings Plan in Canada (RESP)?

As a concerned parent, one of your top priorities is to ensure that your child receives the best education possible. However, the cost of post-secondary education can be quite high and it's important to start planning and saving for it early on. RESP’s offer tax-deferred growth on contributions and the government provides additional incentives through the Canada Education Savings Grant (CESG), which matches 20% of the first $2,500 in contributions made each year up to a lifetime maximum of $7,200. The funds in an RESP can be used to pay for qualified education expenses, including tuition, books and living expenses. Parents, grandparents, or other relatives can open an RESP for a child and anyone can contribute to the plan, up to a lifetime maximum of $50,000 per beneficiary.

Different Types of Registered Education Saving Plans

Individual RESP (iRESP)

Individual RESP (iRESP)

This type of RESP allows a single beneficiary, typically one child, to be named. Contributions can be made by anyone, such as parents, grandparents, or other family members. The contributions grow tax-free until they are withdrawn for educational purposes. However, if the beneficiary does not pursue post-secondary education, the contributions may be returned to the subscriber, while the accumulated earnings are subject to taxes and potential penalties.

Family RESP (fRESP)

Family RESP (fRESP)

A family RESP allows multiple beneficiaries, usually siblings, to be named within the same plan. This type of RESP offers flexibility, as the educational savings can be shared among the beneficiaries. Contributions made to a family RESP also grow tax-free until withdrawn for educational purposes. Similarly, if a beneficiary does not pursue post-secondary education, the contributions may be returned to the subscriber, while the accumulated earnings are subject to taxes and potential penalties.

Group RESP (gRESP)

Group RESP (gRESP)

A Group RESP is a savings plan that involves multiple participants pooling their contributions into a common investment fund. These plans are typically offered by group scholarship plan dealers or scholarship plan dealerships. Participants make regular contributions into the plan, and the contributions are invested by the provider. The accumulated funds are then distributed among the beneficiaries for their post-secondary education.

Product Highlights

Registered Education Saving Plans (RESP) Coverage Options

Tax-Advantaged Savings

RESP contributions are made with after-tax dollars, but the investment growth within the plan is tax-deferred. This allows the savings to grow faster compared to non-registered accounts, as the earnings are not immediately subject to income tax.

Government Grants

The Canadian government offers various grant programs to incentivize RESP savings, including the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB). These grants provide additional contributions to the RESP based on certain criteria, such as family income and contributions made.

Flexibility In Contributions

RESP contributions can be made by parents, grandparents, relatives, or even friends. There are no annual contribution limits, but there is a lifetime limit per beneficiary. This flexibility allows multiple individuals to contribute towards the child's education savings.

Investment Options

RESP funds can be invested in a variety of investment vehicles, such as stocks, bonds, mutual funds, or guaranteed investment certificates (GICs). This allows for potential growth over time, depending on the investment strategy chosen.

Post-Secondary Education Support

RESP funds can be used to cover a wide range of educational expenses, including tuition fees, books, accommodation and other eligible educational costs. This flexibility ensures that the funds are available to support the beneficiary's post-secondary education.

Transferable And Flexible

If the beneficiary decides not to pursue post-secondary education, RESP funds can often be transferred to another eligible beneficiary within the family. Additionally, there are options to withdraw the contributions (subject to taxes and potential penalties) if necessary.

It's important to note that the specific product highlights and features can vary depending on the financial institution or RESP provider. It's recommended to carefully review the terms, conditions, fees and investment options associated with each RESP product before deciding. You can consult with our financial advisor to receive personalized guidance based on individual circumstances and goals.


Benefits of Registered Education Savings Plan

Investing in RESP is an easier decision to make as all parents will definitely be interested in saving for their child’s future education which is the base of their lives totally. This plan helps to grow savings at tax-free and considerably a faster pace than in a non-registered account.

Receive contributions from the government

Receive contributions from the government

The government offers free money to families who open a Registered Education Savings Plan (RESP) for their children. Families can contribute up to $50,000 per child, and the government will add 20% of the contribution, up to a maximum of $500 per year and $7,200 in total. Additionally, low-income families may be eligible for the Canada Learning Bond, which provides up to $2,000 to an eligible child's RESP without requiring any personal contributions. Eligibility for the bond is determined based on the number of children in the family and the family's income, with a maximum income limit of $50,197 for families with one to three children.

Tax-deferred Growth

Tax-deferred Growth

One great advantage of RESPs is that any earnings generated within the account, such as interest, capital gains and dividends, are tax-deferred until the funds are withdrawn. This means that as long as the money stays in the savings plan, you won't have to pay taxes on the growth. This can lead to significant growth in the savings, particularly when combined with the government grant and compound returns. As a result, RESPs can be an excellent way to help your children's education savings grow quickly while minimizing the impact of taxes on their earnings.

Free to pick your suitable educational institution

Free to pick your suitable educational institution

RESP’s are not designed for students who go to universities alone. They are for different types of students under different cadres like students attending colleges, trade schools, CEGEP and apprenticeship programs too. RESP can finance a wide range of programs through its funds like training for hair and esthetics, vehicle maintenance, dance, music, fashion, naturopathy, dental hygiene as well as early childhood education.

Covers more than just tuition fees

Covers more than just tuition fees

After your child has enrolled in any programme you just have to show the proof of enrollment to withdraw from their RESP using Educational Assistance Payments (EAPs). The initial amount that can be withdrawn from their RESP is $5000 until they have completed 13 weeks of their course. The money obtained need not necessarily be used for tuition fees alone, it can contribute to any reasonable expense related to their education like books, housing, transportation or research.

Parties Involved in Registered Education Savings Plan


A subscriber is a person who enters into an RESP contract with a financial institution or promoter and makes contributions to the plan on behalf of a beneficiary. The subscriber is usually a parent, grandparent, or legal guardian of the beneficiary.


A promoter is a financial institution or organization that administers the RESP. The promoter receives the contributions made by the subscriber and invests them in various types of investment products, such as mutual funds or GICs (Guaranteed Investment Certificates). The promoter also manages government grants that are paid into the RESP and makes payments to the beneficiary as necessary.


A beneficiary is the person who will eventually receive the funds from the RESP to pay for their post-secondary education. The beneficiary can be a child, grandchild, or other relative of the subscriber. The beneficiary can receive payments from the RESP in the form of educational assistance payments (EAPs) or accumulated income payments, which can be used to pay for qualifying education expenses such as tuition, textbooks and living expenses.

Ultimately the subscriber makes contributions to the RESP on behalf of the beneficiary, the promoter manages the RESP and invests the contributions, and the beneficiary eventually receives the funds to pay for their education.

How Does a Registered Education Savings Plan Work?

  • A subscriber enters into an RESP contract with the promoter and names one or more beneficiaries under the plan.
  • The subscriber makes contributions to the RESP and government grants (if applicable) will be paid to the RESP.
  • The promoter administers all amounts paid into the RESP and as long as the income stays in the RESP, it is not taxable.
  • The promoter can return the subscriber's contributions tax-free if they are not paid out to the beneficiary.
  • The promoter can make payments to the beneficiary to help finance their post-secondary education, in the form of educational assistance payments (EAPs).
  • The promoter can also make accumulated income payments to the beneficiary.
  • Beneficiaries have to include the EAPs in their income for the year in which they receive them, but they do not have to include the contributions they receive in their income.
  • The Canada Revenue Agency registers the education savings plan contract as an RESP and lifetime limits are set on the amount that can be contributed for each beneficiary.
  • Unless the RESP is a specified plan, no contributions (except transfers from another RESP) may be made to the plan after the end of the year that includes the 31st anniversary of the opening of the plan. The plan has to be completed by the end of the year that includes the 35th anniversary of the opening of the plan.

Get Started

01 Step

Contact MyLegacy Insurance Services

Contact us through phone or e-mail or by filling out the contact form on our website. Our team of experts will guide you through the process and answer all your queries patiently.

02 Step

Provide Required Information

Your interest is our preference. We just get some basic information from you like your name, age, address and SIN (Social Insurance Number). Your child’s information will also be collected regarding education. Sometimes your proof of residency or government issued ID may be requested too.

03 Step

Fund Your RESP Account

The information you provided will be verified and then you can start saving for your child’s education purposes at ease by picking up the suitable contribution amount and frequency. You can make your contribution through online banking, cheque or pre-authorized debit. You can also claim government grants like Canada Education Savings Grant and Canada Learning Bond by completing the necessary forms and submitting the same.


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