A better tomorrow for your family starts today.
As post-secondary education costs continue to spiral, an RESP helps families save for their children or grandchildren. It’s a flexible way of investing in a child’s future and a practical way to defer tax to the beneficiary, who will likely be in the lowest tax bracket when funds are withdrawn. And contributions can qualify for government grants!
- Funds grow tax-sheltered until the child withdraws money for post-secondary education
- Principal amount can be withdrawn anytime, tax-free
- Family plans allow the contributor to designate several children as beneficiaries
- Accounts can stay open for up to 36 years if your child chooses to delay post-secondary education
- Parents, guardians, grandparents, other relatives, or friends can open an account for a child
- A variety of investment options are available, such as term deposits and mutual funds
- Eligible deposits in registered accounts have unlimited coverage through the Financial Services Regulatory Authority (FSRA)
Canada Education Savings Grant
Everyone likes ‘free money.’ When you invest in a RESP, the federal government will contribute a Canada Education Savings Grant (CESG) equal to 20% on up to $2,500 annually for each beneficiary up to 17 years old. This means $500 of free money each year with a lifetime limit of $7,200! Lower income families may qualify for an increased CESG of 30-40%. To receive this grant, the child must have a social insurance number. Applications for this grant are available at Moya Financial.