With the increasing costs associated with college or university, parents and grandparents are looking for smart ways to save for their children's and grandchildren's post-secondary education. An RBC Direct Investing Registered Education Savings Plan (RESP) can help make a difference for your child's or grandchild's future.

How does an RESP work?

• An RESP is a tax-sheltered savings plan that allows you to contribute up to a maximum of $50,000 per beneficiary
• The contributions you make to an RESP are not tax-deductible, but tax on the income earned on investments within the plan is deferred until the intended beneficiary withdraws the funds
• If the plan earnings are withdrawn to cover qualifying post-secondary education expenses, they are taxed to the beneficiary—not to the subscriber. In many cases, the beneficiary will be in a lower tax bracket at the time withdrawals are made
• Funds from an RESP can be used towards study in a qualifying program at a recognized post-secondary educational institution, as long as the beneficiary is a full-time student
• Contributions can be made over a 31-year period from the date you open the RESP, and the plan can remain open for a maximum of 35 years

Grants and Incentives:

RESP Plan Types

You can choose to open an RESP Family Plan or an RESP Individual Plan:

Key benefits of an RBC Direct Investing RESP:

• Create a diversified portfolio with access to a broad selection of investments including stocks, exchange traded funds (ETFs), guaranteed investment certificates (GICs) (from over 30 providers), mutual funds (from over 100 fund companies), bonds and more
• No commissions when you buy or sell mutual funds
• Low commissions with trades starting from as low as $6.95 to $9.95 flat
• No maintenance fee when you hold combined assets of $15,000 or more across all of your RBC Direct Investing accounts
• Access to innovative tools and the latest research to help you make confident investment decisions