RESPs

A Registered Education Savings Plan (RESP) is a great way to save for any child's education.  

Free Money!  Residents of British Columbia born between 2006 and now are eligible for a $1200 grant, the BC Training and Education Savings Grant (BCTESG), toward their RESP.  Annual RESP contributions will be supplemented through the Canada Education Savings Grant (CESG), up to $7200 per child over the plans lifetime.   

Benefits of saving in an RESP

  • Qualify for the Federal and Provincial grants. 
  • No deposit required to start your RESP.
  • Variety of investments available.
  • Interest earnings are tax-sheltered for the life of the plan.
  • Interest earnings are taxed at the child's low rate once withdrawn.
  • Flexibility to transfer the RESP within the family.
  • The plan can be started in the beneficiaries name by anyone.

Government Contribution

CESG:  The federal Government offers an incentive program for RESPs. The Government will contribute 20% of the amount you deposit each year to a lifetime maximum of $7,200. That's up to $500 each year for each eligible child. Think of it as free money for your child's education! A Social Insurance Number (SIN) is a prerequisite for a RESP.

Canada Learning Bond:  If your child was born in 2004 or later and your net family income is less the $45,000, your child may be eligible to receive up to $2000.

BCTESG:  The Government of British Columbia allows a one time grant of $1200 to children born after January 1, 2007.  This grant is paid into their RESP upon application between their 6th and 9th birthday.  Applicant and child must be B.C. residents with SINs.