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RESP Registered Education Savings Plan

One of the best ways to save for a child’s postsecondary education is through a Registered Education Savings Plan RESP.

Whether you want to save for your own children, your grandchildren, a niece, nephew, or family friend, an RESP offers flexibility tax deferred investment growth and direct government assistance to help you save for a child’s education.

Interest income and investment growth earned within an RESP are not taxed as long as the funds remain in the plan.


The Canada Education Savings Grant CESG matches 20% on the first $2,500 contributed annually to a maximum of $500 a year $7,200 overall for a child under the age of 18, plus possible catch up grants.




Canada Education Savings Grants (CESGs)

The federal government pays a subsidy for each child that is a beneficiary of an RESP from the day the child is born until his/her 17th birthday. The current annual maximum CESG per beneficiary is $500 (i.e., 20% of the first $2,500 of contributions paid annually). Each child is entitled to a cumulative limit of $7,200.



Canada Education Savings Grants (CESGs)

A family that did not contribute to its child’s RESP for a year or more can receive a grant of not more than $1,000 as a CESG in a year (i.e., on a maximum contribution of $5,000).
The maximum annual grant on the first $500 contributed per child is increased slightly for low- and mid-income families.

The RESP will be required to repay CESG money in certain situations, such as when a beneficiary does not pursue higher education or the plan is terminated.








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