The RESP is the most powerful financial tool in Canada, designed specifically to help families build significant capital for a child's post-secondary education.
By combining tax-sheltered growth with generous government grants, the RESP is essential for securing your child's academic future.
The RESP functions as a special savings account offering three major tax benefits:
Interest, dividends, and capital gains generated within the account are not taxed as long as they remain invested.
Access to non-refundable amounts (up to 30% or more) to boost your initial capital.
Funds withdrawn for education (EAP) are taxed in the student's name, usually at a very low or zero tax rate.
The main attraction lies in the free money offered by governments. Here is what you can get:
Example: By contributing $2,500 annually for a child in Quebec, you receive $750 free ($500 CESG + $250 QESI), an immediate 30% return on your savings.
| Subvention | Taux / Montant | Plafond / Note |
|---|---|---|
| CESG (Canada Education Savings Grant) | 20% of contributions | Max $7,200 lifetime |
| QESI (Quebec Education Savings Incentive) | 10% of contributions | Max $3,600 lifetime |
| CLB (Canada Learning Bond) | Up to $2,000 | For low-income families |
| Feature | RESP (Education) | TFSA (Tax-Free) | RRSP (Retirement) |
|---|---|---|---|
| Primary Goal | Post-secondary education | All projects (flexibility) | Retirement savings |
| Deductible Contributions | No | No | Yes |
| Taxable Withdrawals | YES (for student) | No | YES (for contributor) |
| Grants | YES (CESG, QESI, CLB) | No | No |
| Limit | $50,000 lifetime / child | Annual cumulative | 18% of earned income |
Don't leave money on the table. Start accumulating grants today.
Speak to an AdvisorOur articles to plan your child's academic future.