What is an RESP?
An RESP is a savings plan for post-secondary education. This registered plan allows you to save for future educational goals, while also making you eligible to receive government grants. These contributions and grants are not tax-deductible; however, income built up in the plan is sheltered from tax until the funds are withdrawn for payment to the beneficiary.
What is so great about an RESP anyway?
Whatever you contribute annually into an RESP, the Canadian Education Savings Grant (CESG) will contribute an additional 20% each year to a maximum of $500 per year. For example, if you contribute $2500 into an RESP, the CESG will contribute $500 increasing your child’s educational savings to $3000. You can then invest the full $3000 into an investment of your choosing. This is a fantastic way to save for post-secondary education.
What types of plans are available?
There are two different types of plans available for the RESP – the family plan and the single plan. Our Financial Planning Representatives can help you discover the benefits and assist you in deciding which plan is best.
For more information about RESP’s, check out our RESP deposit services guide, speak with a Representative, or book and appointment today.
What type of investment option are available for my RESP?
One of the benefits of choosing a Financial Planning Representative is that they have access to a variety of investment options that are not accessible through our regular banking services. An RESP may be invested into mutual funds that could have a much higher rate of return than the average term deposit or high interest savings account.
Speak with a Financial Planning Representative today or book an appointment for more information for more information about investing your RESP.