You make contributions
Contributions are not tax-deductible. There is no annual RESP contribution limit, but the lifetime limit is $50,000 per beneficiary.
RESP 101
Give their future a head start.
Understand RESPs, available government grants and how time can affect education savings.
Canada Education Savings Grant$7,200Maximum lifetime CESG per eligible child
20% basic CESGOn eligible contributions
Start earlyGive savings time to grow
20%Basic CESG on eligible contributions
$500Typical annual basic CESG maximum
$1,000Possible annual CESG with catch-up
$7,200Lifetime CESG maximum per child
How an RESP works
A Registered Education Savings Plan helps families save for a child's education while accessing available government grants.
Government grants are added
The basic CESG generally adds 20% to eligible contributions—up to $500 annually and $7,200 over an eligible child’s lifetime. Children from lower-income families may also qualify for up to $2,000 through the Canada Learning Bond (CLB), even when no personal contributions are made.
The money can grow
Contributions, grants and investment growth can compound tax-deferred while they remain inside the RESP.
Funds support education
When the student starts an eligible program, RESP money can help with tuition, books, housing, transportation and other education costs. Your original contributions come out tax-free. Grants and growth are usually taxed to the student, who may pay little or no tax.
Start with the basics.
An RESP has three main parties. After that, choose the type of plan that fits who you are saving for.
Subscriber
The person who opens the RESP. They choose the beneficiary, make contributions and decide how the plan is managed.
Promoter
The organization that offers and administers the RESP—such as a bank, credit union, investment firm or group plan dealer.
Beneficiary
The person the RESP is for. They can use eligible RESP payments for education after high school.
Plan types
Choose the type of RESP.
The right choice depends on who you are saving for and how much flexibility you want.
Individual plan
One person is named as the beneficiary and they do not have to be related to the subscriber. The subscriber can generally decide when and how much to contribute.
May suit
Often a straightforward choice for one child, an adult learner or someone outside the subscriber’s family.
Check carefully
Only one beneficiary is included. Changing the beneficiary later can affect grants and tax treatment.
Family plan
More than one beneficiary can be included, but each must be related to the subscriber by blood or adoption. Contributions and grants are tracked for each child.
May suit
Can make it easier to manage savings for siblings, and some earnings may be shared among eligible beneficiaries.
Check carefully
Grant limits still apply to each child. The CLB belongs to the eligible child and cannot simply be shared with another beneficiary.
Group plan
Savings are combined with those of other families saving for children of the same age and are managed by a scholarship plan dealer. Regular payments are often expected.
May suit
May suit families who prefer a preset savings schedule and want the provider to make the investment decisions.
Check carefully
Rules, fees and the amount available can depend on the contract. Stopping contributions, transferring or leaving the plan may have consequences.
Where an RESP can be opened
Next, compare where to open it.
Banks, credit unions, investment firms and group plan dealers may offer different grants, investments, fees and rules.
Bank or credit union
Potential advantages
Familiar service, branch or online access, and potentially simple choices such as savings products, GICs or managed funds.
Things to compare
Investment selection, advice and fees vary. Some providers do not support every federal or provincial education benefit.
Investment or advice firm
Potential advantages
Options may range from self-directed investing and managed portfolios to personal advice, sometimes with a wider choice of funds or ETFs.
Things to compare
The amount of help, product selection and total fees vary. With a self-directed account, the parent is responsible for investment decisions.
Group plan dealer
Potential advantages
A structured contribution schedule and provider-managed investments may appeal to families who prefer a set routine.
Things to compare
Group rules can be less flexible. Review sales charges, ongoing fees, missed-payment rules, transfers and what happens if the child does not continue education after high school.
Before opening or transferring
Three checks that deserve attention
- Grant support: Confirm the provider offers every benefit the child may qualify for, including the CESG, additional CESG, CLB and any applicable provincial incentive.
- Cost and flexibility: Compare management, advice, administration, sales and transfer costs—along with the rules for changing or pausing contributions.
- Investment timeline: Understand what the RESP will hold today and how the investment risk can be reduced as education withdrawals get closer.
Plan with simple RESP calculators
Adjust the inputs to create a general estimate for your family.
Savings calculator
Picture their RESP at 18
Explore how monthly savings, grants and time could work together.
Estimated RESP value at age 18$79,973
You contribute$40,320Estimated CESG$7,200Growth$32,453
Hypothetical illustration. Returns are not guaranteed. Basic CESG is simplified and capped at the $7,200 lifetime maximum.
Common RESP mistakes parents make
A few avoidable decisions can reduce grants, create unnecessary costs or make withdrawals more complicated later.
Waiting too long to start
Starting later can mean missing years of potential grants and tax-deferred growth.
Missing available grant room
Families may overlook unused CESG room or misunderstand how catch-up contributions work.
Choosing a plan without comparing it
Fees, investment choices, contribution rules and transfer options can vary significantly between providers.
Taking more investment risk than needed
The investment mix should reflect the child’s age, withdrawal timeline and the family’s comfort with market changes.
Forgetting to reduce risk over time
A portfolio that suited a young child may be too volatile when education withdrawals are approaching.
Not planning RESP withdrawals
The timing and type of withdrawals can affect taxes, grant use and how much remains in the plan.
RESP questions, answered simply
Open any question for a clear, general explanation.
How much should I contribute to an RESP each year?
Contributing $2,500 per beneficiary can generally earn the full $500 basic annual CESG. A different amount may be appropriate depending on unused grant room, cash flow and education goals.
Can I catch up on missed RESP grants?
Unused basic CESG room generally carries forward. In a later year, up to $1,000 of basic CESG may be available when enough unused room exists and the required contribution is made.
Is there an annual RESP contribution limit?
There is no annual contribution limit, but the lifetime RESP contribution limit is $50,000 per beneficiary. Contributions above the amount needed for available grants do not earn basic CESG.
Can more than one child be included in an RESP?
A family RESP can include multiple beneficiaries who are related to the subscriber by blood or adoption. Contributions and grants must still be tracked for each beneficiary.
What can RESP money be used for?
RESP educational assistance payments can support eligible post-secondary expenses such as tuition, books, transportation and living costs, subject to plan and program requirements.
How are RESP withdrawals taxed?
Subscriber contributions can generally be withdrawn tax-free. Grants and accumulated income are paid as educational assistance payments and are generally taxable to the student.
What if my child does not pursue post-secondary education?
You may be able to keep the RESP open in case plans change, name another eligible beneficiary, or take back your original contributions tax-free. In some situations, eligible accumulated income may be transferred to an RRSP when the conditions are met. Government grants generally have to be returned, and tax may apply to investment earnings taken out by the subscriber. The available choices depend on the plan and current rules.
Can I transfer an RESP to another provider?
RESP transfers are generally possible when government and plan requirements are met. Before transferring, compare fees, investments, restrictions and any transfer charges.