Registered Education
Savings Plans (RESPs)

A savings plan for your children’s or grandchildren’s future becomes increasingly important as the cost of post-secondary education continues to increase.

RESPs offer an effective way to maximize the money available to your children or grandchildren when they enrol in a full-time post-secondary program.

You can choose from two plan types—individual plans and family plans. Individual plans assign one beneficiary. Family plans allow more than one beneficiary so you can add siblings.

The contribution limit per beneficiary is $4,000 a year with a lifetime contribution limit of $42,000 per beneficiary. You can make contributions each year for up to 21 years.

Although contributions are not tax deductible, the money within the plan grows tax-free until your designated beneficiary withdraws it.

You may apply for the following grant:

• The federal government provides a 20 per cent grant on the first $2,000 you contribute each year, until your beneficiary turns 17.
• The maximum grant is $400 per year, for a lifetime maximum of $7,200.

In addition to the CESG, you may also apply for one or more of the grants introduced in 2006.

Canada Learning Bond (for low-income families) – To help low-income families start saving for post-secondary education, the federal government offers the Canada Learning Bond to families who receive the national child benefit supplement and invest in an RESP.

• For 2006, families with net annual incomes of less than $36,378* qualify for the supplement.
• Children born on or after Jan. 1, 2004 will get an initial Canada Learning Bond grant of $500 and $100 for each year of eligibility until the child is 15 years old.
• These grants are invested into the RESP on the beneficiary’s behalf.

Additional Canada Education Savings Grant (for low- and middle-income families)

• For contributions made to an RESP in 2005 and later, families could get an additional grant of 20 per cent on the first $500, if their net family income is below $36,378*.
• If your net family income is between $36,378 and $72,756*, a 10 per cent grant is available on the first $500 of contribution.
• Beneficiaries who receive grants will see the money invested into the RESP.

Alberta Centennial Education Savings grant (for Alberta residents only)

• Any child born or adopted in Alberta on or after Jan. 1, 2005 will get an initial Alberta Centennial Education Savings grant of $500.
• This grant is invested into the RESP when you open the account plus $100 again at ages eight, 11 and 14.

You can establish an RESP through Quadrus Investment Services Ltd.

Contact us to find a financial security and investment representative near you.