What are RESP offers?
Registered Education Savings Plans (RESPs) are savings accounts in Canada designed to help parents and guardians save for their children's post-secondary education. These plans offer various benefits, including government grants and tax advantages.
You can also place free funds on a savings account.
Calculate your future income on a savings account (example):
| Amount, $ | Rate, % | Accrued %, $ |
| 25,000 | 3.20% | 800 |
| 25,000 | 3.30% | 825 |
| 25,000 | 3.40% | 850 |
| 60,000 | 3.70% | 2,220 |
| 60,000 | 3.80% | 2,280 |
| 60,000 | 3.90% | 2,340 |
| 140,000 | 4.20% | 5,880 |
| 140,000 | 4.30% | 6,020 |
| 140,000 | 4.40% | 6,160 |
| 340,000 | 4.70% | 15,980 |
| 340,000 | 4.80% | 16,320 |
| 340,000 | 4.90% | 16,660 |
How do I apply for educational savings accounts?
Both the subscriber (the person opening the RESP) and the beneficiary (the child) need a SIN. You can apply for a SIN at a Service Canada office or online.
RESP providers include banks, credit unions, investment firms, and scholarship plan dealers. Compare providers based on fees, investment options, customer service, and flexibility.
Visit your chosen RESP provider with the necessary documentation, including SINs and identification. Complete the application forms provided by the RESP provider. Choose the investment options (e.g., mutual funds, ETFs, GICs) based on your risk tolerance and financial goals.
The RESP provider will apply for the CESG on your behalf. You may need to complete additional forms to apply for the Additional CESG if you qualify based on income.
If available in your province, ensure the RESP provider applies for these grants (e.g., Quebec Education Savings Incentive, British Columbia Training and Education Savings Grant).
Start making contributions to the RESP account. There are no annual contribution limits, but the lifetime limit per beneficiary is $50,000. Contributions can be made periodically (e.g., monthly, annually) based on your financial situation and goals.
You can see the similar FAQ about Canadian banks at the link:
- Advice direct from BMO
- Alterna Bank RRSP
- Alterna Bank TFSA transfer fee
- Alterna Bank and the CDIC
- Alterna’s MarketTracer Term Deposit
Details of companies offering the financial services:
Scotia iTRADE
Web-site: https://www.scotiaitrade.com/
Bank Of Montreal
Head office’s address: 119, rue Saint-Jacques Montreal, Quebec H2Y 1L6
Contact center: 877-225-5266
Phone: 416-867-5000
Web-site: http://www.bmo.com/main/personal
Swift code: BOFMCAM2
Stock code: BMO
BSB: 001
RBC Royal Bank
Head office’s address: 200 Bay St, 9th Floor South Tower, Toronto
Contact center: 800-769-2511
Web-site: http://www.rbc.com/canada.html
Swift code: ROYCCAT2
Stock code: RY
BSB: 003
Scotiabank
Head office’s address: Scotia Plaza, 44 King Street West Toronto
Contact center: 800-472-6842
Phone: 416-866-6430
Web-site: http://www.scotiabank.com/ca/en/0,,2,00.html
Swift code: NOSCCATT
Stock code: BNS
BSB: 002