Each child is one of a kind. Their plan for post-secondary education should be, too.
A Registered Education Savings Plan (RESP) is a registered investment account that lets you save for your child or grandchild’s post-secondary education and take advantage of government grants to help build savings even faster.
Select from a wide range of investments, including stocks, exchange-traded funds (ETFs), options, fixed-income investments like guaranteed investment certificates (GICs) and bonds, and mutual funds.
While your contributions can be withdrawn tax-free, tax on investment income earned will be deferred until the child withdraws the funds for school.
Contributions are not tax-deductible, but you can spread them out over time to fit your budget. Plus, you can hold the RESP as a joint account with your spouse or common-law partner.
That includes paying for everything from tuition to books to transportation. Also, your child can also use the funds later if they decide to postpone their post-secondary education.
You may be able to build your savings even faster with grants provided by the Government of Canada and some provincial governments.
Learn more about what each program provides and their eligibility requirements (opens modal window)An individual plan lets you save for any one beneficiary. A family plan helps you save for multiple beneficiaries who are related to you and gives you the flexibility to allocate the RESP funds among multiple beneficiaries.
With an RESP, you can choose to open either an individual or family plan:
Use your Avion points to pay for trade commissions or turn them into cash contributions.
Use powerful tools and the latest research to confidently make investment decisions.
Save automatically, on a schedule that works best for you, with a Pre-Authorized Contribution (PAC) plan – and watch your savings grow.
There are a few dos and don'ts to consider when putting RESP funds to use.
Complete your application and start investing in their future.
A Registered Education Savings Plan is an investment account that can help you save for a child (aka, the beneficiary)’s future while deferring tax on investment earnings until the funds are withdrawn to pay for educational expenses.
An RESP can be set up for any beneficiary, including your children, grandchildren, nieces, nephews or family friends. Each beneficiary must be a Canadian resident and have a Social Insurance Number (SIN), which can be obtained from a Service Canada Centre (www.servicecanada.gc.ca). Beneficiaries can withdraw tax-deferred funds to pay for post-secondary education.
RESPs can be used to pay for a child’s post-secondary education. Because the plans can stay open for up to 35 years, there’s no rush to use the funds in the event your child chooses not to pursue a post-secondary education right away.
Contribute any amount to an RESP, subject to a lifetime contribution limit of $50,000 per beneficiary. You can contribute to an RESP for a maximum of 32 years (the year the plan opened plus 31 years), and the plan can remain open for a maximum of 35 years.
Learn more about RESP Rules and Contribution LimitsIf the beneficiary is enrolled in a qualifying post-secondary educational program, you can submit an RESP withdrawal request form to pay for school tuition, residence, books, school supplies and other educational expenses.
RESP withdrawal forms can be found either by selecting Forms and Agreements under My Portfolio when you are logged into your account, or by visiting Download Forms and selecting “Withdrawal Requests” from the drop-down menu.
Once you have completed your form in full, please forward it to RBC Direct Investing either by mail or in person at an Investor Centre or RBC Royal Bank® branch.
RBC Direct Investing Inc.
Royal Bank Plaza
200 Bay Street, North Tower
P.O. Box 75
Toronto, Ontario, M5J 2Z5
Here’s a quick overview of what various government programs provide—along with key eligibility requirements.
Program and Provider | Amount | Eligibility Requirements |
---|---|---|
Canada Education Savings Grant (CESG) |
|
|
Additional CESG |
|
Based on adjusted net family income:
(2022 amounts ; income thresholds are adjusted annually) |
Canada Learning Bond |
|
|
Quebec Education Savings Incentive |
|
|