RESPs

Prepare for your children’s pursuit of a higher education. Whether they're 10 days old or 10 years old, plan for their future now!

Types of RESPs

  • Individual Plan – only one beneficiary – no relationship requirement with subscriber(s)
  • Family Plan – one or more beneficiaries – each beneficiary must be connected to each subscriber by blood relationship (as defined in the Income Tax Act) or adoption.

Beneficiary

  • Individuals must have a Social Insurance Number and be a Canadian resident
  • In an Individual Plan, can be anyone, including the subscriber
  • In a Family Plan, each beneficiary must be connected to each subscriber by blood relationship or adoption and must be under 21 when the plan is entered into.
  • Only certain beneficiaries are eligible to replace another beneficiary in a Family Plan. The same rules apply to the Individual Plan in order to avoid tax and CESG implications.

Subscriber

  • Can be joint with spouse/common-law partner
  • Must have a Social Insurance Number
  • In an Individual Plan, can be anyone, including the beneficiary
  • In a Family Plan, each subscriber must be connected to each beneficiary by blood relationship or adoption

Contributions

  • No annual contribution limit 
  • Lifetime maximum contributions to all RESPs per beneficiary is $50,000.00 (excess contributions are not permitted and subject to penalty)
  • Contributions are not tax deductible however earnings are tax sheltered until withdrawn
  • Excess contributions which did not attract Canada Education Savings Grant (CESG) in the year cannot be carried forward to attract CESG in a subsequent year

Canada Education Savings Grant

  • A great incentive to save
  • Receive 20% on the contribution amount each year to a maximum of $500 or $600 depending on Net Income of Family
  • If the beneficiary has unused CESG contribution room, additional grant can be paid
  • Lifetime maximum per beneficiary is $7,200
  • CESG payments do not affect the annual or lifetime RESP contribution limits
  • CESG is paid directly to the RESP plan

Eligibility for Grant

  • Contributions must be made prior to the end of the year the beneficiary attains age 17 and the beneficiary must be a resident of Canada and have a Social Insurance Number.
  • RESP beneficiaries age 16 or 17 years are eligible only if:
    • a minimum of $2,000 RESP contributions have been made and not withdrawn for that beneficiary before the end of the year the beneficiary attains 15 years,
    • a minimum of $100 in annual contributions have been made and not withdrawn for that beneficiary in any 4 years before the end of the year the beneficiary attains 15 years.

It is important to note that there are situations where the grant would have to be repaid. Contact your credit union for full details.

Educational Assistance Payments (EAP)

  • It is intended that all earnings in the RESP, as well as the CESG received, will be used for education-related costs at a qualifying post-secondary educational institution.
  • Earnings are sheltered from tax while in the RESP Plan. Both earnings and CESG will be taxable when withdrawn by the Beneficiary.
  • Withdrawal requests for EAPs must be accompanied by proof of enrolment in an approved education program.
  • EAPs are limited to $5,000 in the first 13 consecutive weeks in a qualifying educational program.

Investment Options

  • New Plan - Minimum Deposit - $500.00.
  • Subsequent Lum Sum Deposits:
    • Fixed Term $500.00
    • Variable Rate $100.00 (For bi-weekly or monthly electronic deposits, the minimum is $25.00)
  • Quarterly Statements

Canada Learning Bond

  • Grant from Government of Canada to help modest  income Families save for child's education (no deposit required by the family)
  • Child must have been born after December 31st, 2003
  • The Canada Learning Bond is put directly into an RESP
  • If you qualify Government will add a first payment of $500 to a child's RESP and $100 a year until child is age 15
  • Total Canada Learning Bond available for a child is $2,000
  • If child named in RESP does not continue education after high school, the Canada Learning Bond must be returned to Government of Canada - For more information click Canada Learning Bond.
 

Find Branch/ATM

Enter address, postal code or branch name