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What is an RESP?
A Registered Education Savings Plan (RESP) is a specialized investment account in Canada designed to help parents and families save for a child’s future education costs. Supported by the Government of Canada, it not only allows investment growth but also provides access to grants and financial incentives offered by the government.
An RESP is more than a simple savings account — it is an opportunity to benefit from tax-advantaged investment growth and government contributions, helping secure the educational future of children and youth.
How does it work?
When you open an RESP for your child, you can contribute any amount you choose. Your contributions can be invested in various eligible options such as:
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mutual funds
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bonds
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Guaranteed Investment Certificates (GICs)
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and other approved investment vehicles
Key features of an RESP:
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Your contributions grow over time.
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Investment earnings are not taxed until they are withdrawn.
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In addition to investment growth, the Government of Canada adds extra funds to your account through programs such as the Canada Education Savings Grant (CESG) and other available incentives.
Who can open an RESP?
Anyone—parents, guardians, or even other family members—can open an RESP for a child or chosen beneficiary.
The child or student must have a valid Social Insurance Number (SIN).
The account is typically opened in the child’s name, while contributions are made by the parents or guardians.
Benefits of Investing in an RESP
Government contributions: Access to federal grants and education incentives provided by the Government of Canada.
Tax-free growth: Investment earnings within the RESP grow tax-deferred until they are withdrawn.
Education funding: Helps cover the costs of college, university, and other post-secondary programs.
Flexibility: Allows transfers to a sibling’s RESP or use across various eligible educational programs.
Encourages long-term saving: Supports structured, long-term planning for a child’s higher education.