Registered Education Savings Plans (RESP) – Child’s Education Savings Plan

Registered Education Savings Plans (RESP) –  Child’s Education Savings Plan

What is a Registered Savings Plan for Studies? A Registered Savings Plan for Studies is a special savings account that can help you, as well as your family or friends, save for your child’s post-secondary education.

The RESPs are registered by the Government of Canada in such a way that the savings made in anticipation of the studies can grow without paying taxes until the person designated as a beneficiary of the RESP is enrolled in a post-secondary institution.

Why should I open a RESP? Because when you open an RESP account for your child, the Government of Canada will help you save by adding money to your RESP through special savings incentives. These incentives are known as the Canadian Education Savings and Canadian Studies Grant. You are only entitled to them if you open an RESP.

Also, if you live in Alberta and have an RESP, you may also receive a supplemental grant under the Alberta Centennial Education Savings Plan. For more information, call 1-866-515-2237, or go to www.advancededucation.gov.ab.ca/aces/

Who can open a RESP? Any person (parents, guardians, grandparents, other relatives or friends) can open an RESP account for your child.

Where can I open a RESP? You can open an RESP account at a financial institution, such as a bank or credit union, or through a certified financial planner or a collective plan agent. The institutions and organizations that offer PRAE are called “RESP providers”.

For a list of RESP providers, visit the CanLearn.ca website.

What do I need to open a RESP? You will need your own social security number, issued by the Government of Canada, and a social security number for the child for whom you are saving. Obtaining a social security number is free. Even a baby can get it.

What should I do to apply for a social security number?

* Visit your local Canada Service Center to get the required documents.
* Call 1 800 O-Canada (1-800-622-6232) for more information.
* Visit the website servicecanada.gc.ca (enter the word “SIN” in the search engine).

Is there a minimum amount that you must deposit in an RESP? The amount that you deposit in an RESP depends on the type of plan you choose. Some RESPs do not require a minimum deposit. Before choosing the type of RESP, find out about the different providers and compare your plans to find the one that best meets your needs.

The Government of Canada will add your contribution to the amount that you deposit in your child’s RESP, no matter what that amount is.

Do I need a bank account to open a RESP? No. You can open an RESP without having a bank account.

How much money can I deposit in a RESP? You can deposit up to 50,000 for each child designated as a beneficiary in an RESP. There is no annual contribution limit. The Government of Canada will only add a grant of $ 2,500 saved annually.

How often should I deposit money in an RESP? Each RESP is different. Some types of RESP require specific monthly contributions, while others allow you to deposit money when you want.

The sooner you start saving, the faster your money will grow, as it will begin to produce interest sooner. Even deposits of $ 5 per week can accumulate quickly, especially when government grants are added to your savings.

Can I open an RESP for myself? Yes. There are no age limits to open an RESP. You can open a savings plan for a child or you can designate yourself or another adult as a beneficiary. The PRAE allows adults to accumulate the interest on their savings for studies without paying taxes.

You can choose between three general types of RESPs: family, individual or collective. Before choosing an RESP, ask the RESP provider to explain the different types of plans so you can choose the one that best meets your needs.

For a list of RESP providers, visit the CanLearn.ca website.

Family plan
In a family plan, you can designate one or more children as RESP beneficiaries, but they must be family members. They must be your children (including adopted children), grandchildren, brothers or sisters.

Individual plan
An individual plan is signed on behalf of a single beneficiary. The person does not have to be a family member. Since there is no age limit, you can even open an RESP for yourself or for another adult. The savings incentives for studies described in this booklet are only available for children 17 years old and younger.

Collective plan
In a collective plan, your savings are combined with those of other people. The amount each child gets. What is a Registered Savings Plan for Studies? A Registered Savings Plan for Studies is a special savings account that can help you, as well as your family or friends, save for your child’s post-secondary education.

The RESPs are registered by the Government of Canada in such a way that the savings made in anticipation of the studies can grow without paying taxes until the person designated as a beneficiary of the RESP is enrolled in a post-secondary institution.

Why should I open a RESP? Because when you open an RESP account for your child, the Government of Canada will help you save by adding money to your RESP through special savings incentives. These incentives are known as the Canadian Education Savings and Canadian Studies Grant. You are only entitled to them if you open an RESP.

Also, if you live in Alberta and have an RESP, you may also receive a supplemental grant under the Alberta Centennial Education Savings Plan. For more information, call 1-866-515-2237, or go to www.advancededucation.gov.ab.ca/aces/
Who can open a RESP?

Any person (parents, guardians, grandparents, other relatives or friends) can open an RESP account for your child.
Where can I open a RESP?

You can open an RESP account at a financial institution, such as a bank or credit union, or through a certified financial planner or a collective plan agent. The institutions and organizations that offer RESP are called “RESP providers”.

For a list of RESP providers, visit the CanLearn.ca website.

What do I need to open a RESP?
You will need your own social security number, issued by the Government of Canada, and a social security number for the child for whom you are saving. Obtaining a social security number is free. Even a baby can get it.
What should I do to apply for a social security number?

* Visit your local Canada Service Center to get the required documents.
* Call 1 800 O-Canada (1-800-622-6232) for more information.
* Visit the website servicecanada.gc.ca (enter the word “SIN” in the search engine).

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