Registered Education Savings Plan
Registered Education Savings Plans (RESP) are government-approved investment accounts designed to help you save money for your child’s post-secondary education.
RESPs can be invested in mutual funds offered through Credential®, or in guaranteed investments available through Concentra®. We’ll help you determine the best option, but no matter where you put your RESP, it’s a perfect chance to build a bright future for your child and get some government help along the way.
Here are some of the benefits of an RESP:
- They’re tax sheltered so your investment grows tax free until your child starts their post-secondary education and begins making withdrawals.
- Withdrawals of the government contributions and accumulated earnings from an RESP will count as taxable income for your child, but as a student they'll be charged little or no tax.
- Government money can help jumpstart your RESP saving:
- The Canada Education Savings Grant (CESG): The federal government matches 20% of your RESP contributions, up to $500 each year. A larger percentage may be available depending on your income level.
- The Canada Learning Bond (CLB): The CLB is available on RESPs for children born after 2003 whose family receives the Canada Child Benefit (CCB). The CCB replaced the National Child Benefit Supplement in July 2016. As long as the parents or guardians qualify and continue to receive CCB, the government will provide an additional $100 each year until the child turns 15. There's also a one-time $500 grant just for opening an RESP. If you qualify, you can get up to $2,000 for your child’s RESP.
- The Saskatchewan Advantage Grant for Education Savings (SAGES): The Saskatchewan government matches 10% of your RESP contributions for each year following January 1, 2013, up to $250 per child per year. SAGES ends on December 31, 2017.
- You can set up an individual plan for one child or a family plan for multiple children.
- Anyone can open an RESP for a child so it’s a nice gift opportunity for relatives.
Find out what you’ll need for your child’s education with the help of our RESP Calculator.
Call our Contact Centre at 1.866.863.6237 to discuss your options in detail and get started on your RESP.
*Mutual funds are offered through Credential Asset Management Inc. and mutual funds and other securities are offered through Credential Securities Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual funds investments. Please read the prospectus before investing. Unless otherwise stated, cash balances, mutual funds and other securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit union. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated. Credential Securities Inc. is a Member of the Canadian Investor Protection Fund.
®Credential is a registered mark owned by Credential Financial Inc. and is used under license.