Global RESP Funds – What is a Registered Education Savings Plan (RESP)?

A Registered Education Savings Plan (RESP) is a tax-sheltered plan. As discussed on Global RESP Funds website, it enables Canadian families to start saving for their children’s post-secondary education. With the high cost of post-secondary education, many parents, grandparents, other family and friends are recognizing the need to save to cover the increasing cost. See how Global RESP can help below.

Benefits of RESP:

RESPs combine flexibility, tax deferral and direct government assistance to help you save for a child’s education.

RESPs offer many benefits:

  1. Tax-Deferred Earnings:  Any interest income and investment growth earned within an RESP are not taxed as long as the funds remain in the plan. Withdrawals from an RESP are taxed based on the student income, which usually means they pay little to no tax.
  2. Canada Education Savings Grant (CESG): The following government grants can increase your investment by over 30%, and grow on a tax-deferred basis until they are withdrawn to fund post-secondary studies.The basic CESG provides 20 cents on every dollar you contribute to an RESP, up to a maximum of $500 on an annual contribution of $2,500. To receive the CESG, an RESP must have been opened for the child/beneficiary. This grant is available up until the end of the calendar year in which the child turns 17. Any Canadian resident, including parents, grandparents, friends and neighbours have the ability to open and contribute to an RESP for a child.
  3. Canada Learning Bond (CLB): Children born on or after January 1, 2004 can be eligible for the CLB. The CLB consists of a $500 lump sum, plus an additional $100 per year until the child turns 15 years old for a lifetime maximum of $2,000 (Subject to meeting the CLB eligibility criteria).
  4. Provincial Government Incentives:

                       British Columbia Training and Education Savings Grant (BCTESG)
                       The Government of British Columbia will contribute a one-time grant of $1,200 to eligible children through the BC Training and Education Savings Grant. Children                                                  born in or after 2006 are eligible for this grant on their sixth birthday up until the day before their ninth birthday.
                                        British Columbia Website

                       Quebec Education Savings Incentive (QESI)
                       The Quebec Education Savings Incentive adds up to 10% for a maximum of $250 to your annual RESP contribution per child. You may also qualify for the increased amount                                aimed at helping low- and middle-income families, which adds up to $50 a year. The cumulative amount of QESI granted per beneficiary is up to a lifetime maximum of $3,600.
                                       Quebec Website

                        Saskatchewan Advantage Grant for Education Savings (SAGES)
                       The Saskatchewan Advantage Grant for Education Savings (SAGES) provides a grant of 10% on contributions made since January 1st and December 31, 2017 into an RESP, up to                        a maximum of $250 per child per year. The cumulative amount of SAGES payments per beneficiary is up to a lifetime maximum of $4,500. SAGES will be suspended                                              after December 31, 2017.  Contributors will have up to December 31, 2017 to make a contribution into an RESP and be eligible for SAGES.
                                      Saskatchewan Website


Global RESP Funds Calculator

Saving for your child’s education doesn’t have to be a daunting task. With the proper investment advice and savings vehicle, a little can go a long way.

Use our RESP Calculator to show you how investing in an RESP, combined with government grants like the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB) can yield additional returns on investment. Click below to try it today!


Global RESP Funds Calculator

Global RESP Funds Calculator


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