Information about Registered Education Savings Plans:

  • RESPs are Registered Education Savings Plans; a Canadian Government initiative to assist parents, grandparents, relatives or friends, fund a child's post-secondary education.

  • The child ( beneficiary ) must be a resident of Canada, have a social insurance number, and be under 18 years of age.

  • The Canadian Government's Budget of 2004 introduced steps to help low and middle-income families save for their children's college or university.

  • A $500 Canada Learning Bond will be provided at birth for children in families that are entitled to the National Child Benefit ( NCB ) supplement  -  generally families with incomes under $35,000.

  • As part of a new program the Canada Learning Bond ( CLB ), will provide up to $2,000 for children born after 2003 in families eligable for the National Child Benefit supplement. These children will qualify for $100 CLB instalments to the age 15, in each year their family is entitled to the NCB supplement.

  • The CLB will be paid into a registered education savings plan ( RESP ) established by the family for the child's post-secondary education. An additional $25 will be paid with the initial $500 bond to cover the cost of establishing an RESP.

  • For every $100 contributed to an RESP, Canada provides a $20 grant, the Canada Education Savings Grant (CESG). It can total up to $400 a year for each child.

  • The advantage Registered Education Savings Plans ( RESPS ) have over other investments, is the Canadian Government will add a yearly grant of 20% on top of your investment money. The maximum grant is $400.00 for each child, for every year of the plan; attained with an investment of $2,000.00 per year.

  • This 20% matching rate is doubled to 40% for families with incomes up to $35,000. It also increases the rate to 30% for families with incomes between $35,000 and $70,000. These enhanced CESG rates will apply to the first $500 contributed in a year to a child's RESP.

  • Funds deposited in Registered Education Savings Plans ( RESPS ) grow tax free, as of 2007, assets in RESPs exceeded $22 billion.

  • The Canada Learning Bond also provides a new up-front grant of up to $3,000 for first year post-secondary dependent students from low-income families.

  • The Program also Provides an annual up-front grant of up to $2,000 for eligible students with disabilities.

  • There are many different types of Registered Education Savings Plans ( RESPS ); a parent can enter into a RESP on a monthly basis, or as intermittent contributions. The subscriber is not obligated to maintain any particular pattern of monthly payments under RESP rules.

  • A self-directed Registered Education Savings Plan ( RESP ) allows a subscriber to choose which investments will be included in the RESP ( unlike Registered Retirement Savings Plans ( RRSPS ), RESPs have no foreign content limits ).


  • A subscriber can choose a Registered Education Savings Plan ( RESP ) which combines his or her contributions with that, of all other subscribers. The investment decisions are made by the subscriber's financial institution.

  • Should the beneficiary decide not to attend a post-secondary institution, the funds from the Registered Education Savings Plan ( RESP ) can be transfered to a brother or sister under the age of 21.

  • The subscriber may transfer the funds from an RESP to a Registered Retirement Savings Plan ( RRSP ) - to a maximum of $50,000.00.  The funds may also be transfered to a spousal RRSP.  In such cases the grant portion of the money in the RESP is returned to the Canadian Government.

  • When the beneficiary enrolls in a post-secondary institution as a full time student the RESP can begin making payments to the student. Payments can go towards the student's tuition, books, accommodations and transportation.

  • The federal loan ceiling for Canada Student Loans will be increased to $210 from $165 a week.

  • If a student withdraws the taxable amount of an RESP, during the years while making less than the $10,382, the student will pay no tax on income.

  • The Canadian Government estimated that in 2000-01, 60% of students had a federal or provincial student loan.    The Canada Learning Bond 2004

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    What Are RESPS? Information about Registered Education Savings Plans

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