| |
With the increasing cost associated with college or university,
parents are looking for smart ways to save for their children's
post secondary education. A RBC Direct Investing Registered Education
Savings Plan (RESP), combined with the Canada Education
Savings Grant (CESG), can really make a difference
for your child's future.
The
Canada Education Savings Grant |
Every Canadian child registered
as an RESP beneficiary is entitled to receive an extra
20% through the Canada Education Savings Grant. For
the first $2,500 you contribute each year to an RESP,
the federal government will match 20% of your contribution
for that child - up to $500 per year. Over the life
of an RESP, the child named as beneficiary could receive
up to an additional $7,200 from the grant. Add to that
the growth you can achieve on the additional funds
and the grant can make a substantial difference to
the end result.
Make your contribution by December
31 and be eligible for the Canada Education Grant.
|
What is an RESP and how does it work?
An RESP is a tax-sheltered savings plan, approved by the
Federal Government, that allows you to contribute up to a maximum of
$50,000 per beneficiary.
Contributions can be made over a 21 year period from the
date you open the RESP. The beneficiary has 25 years to use
the accumulated funds.
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. In many cases, the beneficiary will be in a lower
tax bracket at the time withdrawals are made.
Funds from the 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.
An RESP Family Plan gives you even more flexibility.
An RESP Family Plan allows you to name more than one beneficiary,
add a beneficiary or change the named beneficiary at any
time under the same Plan. This is applicable if the beneficiary
is related to you, the contributor, by blood or adoption,
giving you the flexibility to share the assets you've accumulated
in the Plan between several beneficiaries, according to their
needs.
If a beneficiary does not pursue a post-secondary education,
the funds in the RESP can be easily transferred to those
who do, without incurring a penalty.
Details about RBC Direct Investing RESP Accounts
A RBC Direct Investing RESP can hold a wide range of RESP-eligible
investments, including GICs, treasury bills, money market
instruments, bonds, stocks and over
2,500 mutual funds.
There is no fee if you maintain a balance of $25,000 or
more in your RESP. Balances of less than $25,000 are subject
to a low annual administration fee.
It is quick and easy to make cash or RESP-eligible security
contributions to your RBC Direct Investing RESP from your RBC Direct Investing
Investment account.
|
|
RBC
Registered Rewards. For every dollar you spend
on your eligible RBC Royal Bank Visa card, you earn
1 RBC Rewards point. In turn, you can redeem your
points for an RBC Registered Rewards voucher, that
you can make a contribution into your RBC Direct Investing
RESP , just like cash.
|
|
|
|
Make the right move and start enjoying the speed, security and reliability of RBC Direct Investing. |
|
 |
|
 |
|
|
|
|
