Savings for your Child’s Education
Give your children an educational advantage
A Registered Education Savings Plan (RESP) is a tax-deferred investment plan designed to assist you in saving for your child’s or grandchild’s post-secondary education. Unlike an RRSP, your contributions to the plan can’t be used to reduce earned income for tax purposes; they are, however, allowed to grow on a tax-deferred basis within the plan. The earnings are taxable in the hands of the beneficiary (the student, who’s usually in a lower tax bracket) when withdrawn.
- – You can contribute up to $5,000 per year per child, to a lifetime maximum of $50,000 per child.
- – Canada Education Savings Grant money is available – up to $7,200 per child.
- – You can access your principal at any time, tax-free, after you pay back the grant and/or bond received since the account inception.