Key RESP Facts

5 Things Everyone Should Know About RESPs:

1. You can contribute up to a maximum of $50,000 per child over the lifetime of your plan.

2. Starting early is the most affordable way to maximize your investment: the younger your child is when you start, the lower your contributions need to be to reach your savings goal.

3. The CESG matches 20 %, 30 % or 40 % of your contributions based on your annual family income for a maximum annual grant, which ranges from $500 to $600 per child per year, up to a total grant of $7,200 over the lifetime of your plan.

4. Investment income is tax-sheltered until it is paid out in the hands of the student.

5. A Social Insurance Number is required to open any RESP. With a Canadian Scholarship Trust Plan, you can start an education savings plan without a SIN for up to one year. When we receive your child's SIN, we will register your plan and apply the CESG and accumulated investment income retroactively.